
#Budweiser #Parent #InBev #Stock #Falls #Beer #Volumes #Decline
Key takeaways
- AB InBev missed third-quarter revenue expectations as the beer company reported a surprise decline in beer volumes.
- Sales in the United States were positive for the first time since controversy over the company’s relationship with transgender influencer Dylan Mulvaney led to a boycott of Bud Light.
- AB InBev announced a $2 billion stock buyback.
AB InBev’s (BUD) American depositary receipts (ADRs) fell 5% on Thursday morning as the world’s largest beer maker missed sales estimates due to a sudden drop in beer volumes.
The maker of brands including Budweiser and Stella Artois reported third-quarter organic revenue growth of 2.1% year over year to $15.05 billion, below the consensus forecast of $15.57 billion from analysts surveyed by Visible Alpha. Core earnings per share (EPS) of $0.98 were above expectations.
Total volumes decreased by 2.4%, while estimates indicated an increase of 0.11%. Beer volumes fell 3.1%. Non-beer volumes rose 0.6%.
The company said revenues were boosted by “major brands” which achieved gains of 3.1%. It was led by Corona’s 10.2% jump outside its home market.
Sales advance in the US for the first time since the Bud Light boycott
U.S. sales rose 1.8%, the first year-over-year increase since the first quarter of 2023, as AB InBev hit a boycott of its Bud Light brand related to the company’s relationship with transgender influencer Dylan Mulvaney. The protest led to Bud Light losing its title as the best-selling beer in the United States to Constellation Brand’s (STZ) Modelo Especial.
The brewery’s board of directors has approved a $2 billion stock buyback program that will be implemented over the next 12 months.
Including today’s drop, AB InBev ADRs have lost about 8% of their value this year.
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#Budweiser #Parent #InBev #Stock #Falls #Beer #Volumes #Decline