AB Inbev's Q1 volumes fall less than expected

(Sharecast News) - Shares in Anheuser-Busch InBev were rising strongly in Brussels after the Belgian beverages giant reiterated its full-year guidance following better-than-expected first-quarter volumes. The Stella Artois, Budweiser and Bud Light manufacturer said that volumes were down 0.6% year-on-year at 140.55m hectolitres (hls), with own beer volumes falling 1.3% and non-beer volumes dropping 3.5%.

Results are continuing to be dampened by a boycott of Bud Light in the US, which started in April 2023 when conservative customers expressed anger following the promotion of the brand by transgender social media personality Dylan Mulvaney. Volumes in North America fell 9.9% to 23.85m hls in the first quarter.

However, the overall group decline wasn't as bad as the 1.0% fall expected by analysts, with strong growth in the Middle Americas (+4.2%) and EMEA regions (+5.4%) helping to support group results.

Despite the volume decline, revenues improved to $14.55bn, up from $14.21bn a year earlier, representing organic growth of 2.6%, with revenue per hl rising 3.3%.

Underlying profits rose to $1.51bn from $1.31bn, which the company said was helped by "disciplined overhead management enabling increased sales and marketing investments in our brands". Normalised EBITDA rose 5.4% to $4.99bn.

Looking ahead, AB InBev said it still expects EBITDA growth in 2024 in line with the medium-term outlook of between 4% and 8%.

The stock was up 4.7% at €59.18 by 1053 CEST.