AB InBev, the global beverage company, has reported a rise in its third-quarter profits, despite facing challenges with falling volumes.
In the third quarter of 2024, AB InBev’s profits surged by 13.9%, reaching £1.48 billion. This financial improvement occurred alongside a modest sales growth of 2.1%. However, the company experienced a setback in its total volumes, which fell by 2.4%. This decline was notably marked by a 3.1% drop in its beer product lines, contrasted by a slight uptick of 0.6% in non-beer products.
The company’s performance was further highlighted by the performance of its ‘megabrands’, including Brahma, Cass, and Skol, which saw a 3.1% increase. Among these, the Corona brand experienced significant growth, with a 10.2% rise in markets outside its home territory, a sign of robust international demand despite domestic challenges.
Michel Doukeris, the Chief Executive of AB InBev, expressed confidence in achieving the company’s anticipated EBITDA growth target of 6% to 8% for the full financial year of 2024. He stated, ‘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.’
Despite these positive forecasts, the company faces ongoing challenges. The recent report from its UK division highlighted increased financial losses over the past year, which persisted even after implementing price hikes. This situation reflects the broader economic pressures and changing consumer spending habits that are affecting the beverage industry.
While AB InBev celebrates increased profits, the decline in volume underscores the complexities of the current market landscape. Nevertheless, the company’s strong brand appeal and strategic execution provide a foundation for continued optimism in achieving its financial objectives.
