AB InBev has reported a notable rise in profits for the third quarter, despite facing a decline in volumes due to challenging consumer conditions.
The global brewing giant, known for brands such as Budweiser, Corona, and Stella Artois, has announced a significant increase in profits, rising by 13.9 per cent to £1.48 billion. Sales for the quarter have also slightly increased by 2.1 per cent, despite overall volumes witnessing a downturn of 2.4 per cent.
While the company has experienced a decrease in beer volumes by 3.1 per cent, there has been a slight rise of 0.6 per cent in non-beer volumes. Notably, AB InBev’s ‘megabrands’, including Brahma, Cass, and Skol, have seen growth, with Corona achieving a remarkable 10.2 per cent expansion outside its home market during this period.
Michel Doukeris, the chief executive, has expressed confidence in achieving the company’s enhanced EBITDA growth outlook of 6 to 8 per cent for the 2024 financial year. He remarked, “Beer is a passion point for consumers. Consumer demand for our megabrands and the execution of our mega platforms delivered another quarter of top- and bottom-line growth with margin expansion. Our teams and partners continue to execute our strategy.”
The results come following a report from AB InBev’s UK division, which revealed an increase in losses over the last financial year, despite price hikes. This complex scenario highlights the ongoing challenges and strategic efforts by the company to maintain profitability amid fluctuating market dynamics.
Despite facing tough market conditions, AB InBev has made strides in profitability, driven by strong performance from its megabrands and strategic execution.
