Anheuser-Busch InBev said a move toward other drinks helped offset a drop in global beer volumes in the third quarter, furthering a rebound streak following a tough few years for the world's largest brewer.
The Budweiser maker said volumes of beer it sold in the three months through September fell 0.1% organically on year, but a 4% rise in nonbeer volumes helped lift total volumes into the black.
Revenue, meanwhile, increased 4.9% on year to $16.51 billion. The top line was boosted by a focus on the more premium end of the group's portfolio, including its nonbeer lines, AB InBev said.
The group's "beyond beer" portfolio includes ready-to-drink cocktail lines like Cutwater, as well as flavored malt drinks. The Brussels-listed group is also seeing growth in its low- and no-alcohol beers, in line with peers like Dutch brewer Heineken.
The downturn in overall beer volumes reverses a rebound booked over the first half of the year, including a 1.1% rise in volumes in the second quarter, lifted by sunny summer weather and soccer's World Cup. In the most recent quarter, volumes of beer sold by the group were lower in North America and Asia Pacific, but grew in other markets.
Third-quarter growth "reflects the strength of our diversified footprint," Chief Executive Officer Michel Doukeris said, as well as a strategy of focusing investment on the group's biggest brands like Corona, Stella Artois and Michelob Ultra. Those labels booked growth of 20%, 19% and 50%, respectively, outside their home markets over the quarter, AB InBev said.
That has helped AB InBev halt a slide in performance that lasted several years, as price inflation dampened drinkers' spending while Bud Light lost market share amid a boycott that followed a marketing push featuring a transgender influencer. However, the consumer environment remains subdued in many markets.
The company backed its outlook for the year, with earnings before interest, taxes, depreciation and amortization expected to grow between 4% and 8% compared with a year earlier, in line with midterm targets. Over the third quarter, adjusted Ebitda rose 3.9% to $5.96 billion, in line with expectations.
Comments