Hoping For Cheaper Beer? Budweiser Parent Signals No Retreat From Inflation-Based Pricing

Anheuser-Busch InBev (NYSE:BUD) stock traded lower Thursday despite the brewer reporting better-than-expected third-quarter earnings and revenue.

The results showed a 34-basis-point contraction in normalized EBITDA margin to 36.1%, a 16.8% decline in China volumes and a 1.2% drop in U.S.

The company’s portfolio includes major brands such as Budweiser, Corona and Stella Artois, along with more than 500 beer brands spanning traditional lagers and newer product categories.

Earnings Beat Expectations

Anheuser-Busch InBev reported adjusted earnings of $1.21 per share, beating analysts’ consensus estimate of $1.15.

Revenue grew 4.9% organically, while reported revenue increased 9.1% to $16.51 billion. Revenue per hectoliter rose 4.2%.

Total volumes grew 0.4%, with beer volumes declining 0.1% and nonbeer volumes increasing 4%.

Normalized EBITDA rose 3.9% to $5.96 billion, while normalized EBITDA margin narrowed 34 basis points to 36.1%.

The board approved an interim dividend of 40 euro cents per share for fiscal 2026, up from 15 euro cents in fiscal 2025.

Megabrand revenue increased 7.7%, led by 20% growth for Corona outside its home market. Non-alcoholic beer revenue surged 35%, Beyond Beer revenue climbed 19%, and third-party sales through BEES Marketplace jumped 45% to $1.4 billion.

Beer Prices To Rise With Inflation

During Thursday’s earnings call, CEO Michel Doukeris said the company would continue raising beer prices broadly in line with inflation, even as a major competitor signaled smaller price increases.

“There’s no change on our view that we price in line with CPI on average,” Doukeris said.

He added that the beer industry has yet to fully recover from pandemic-era cost pressures and cannot indefinitely absorb rising expenses without passing them on to consumers.

Regional Performance

Anheuser-Busch InBev reported record third-quarter volumes in 15 markets, including Colombia, Peru, Ecuador, South Africa, India and the Dominican Republic.

The company gained U.S. total alcohol market share for 10 consecutive quarters, although third-quarter revenue declined 1.2% and EBITDA fell 4%.

Mexico delivered mid-single-digit volume growth and double-digit profit growth, while Colombia posted record quarterly volumes.

Brazil recorded mid-single-digit revenue and profit growth. European volumes remained flat, while South Africa achieved record volumes and high-single-digit revenue growth.

China remained a weak spot, with volumes and revenue declining 16.8% each, while EBITDA plunged 30.5%.

2026 Outlook

Management reaffirmed its 2026 outlook, emphasizing premiumization, nonalcoholic and beyond-beer products, digital marketplaces, operational efficiency and disciplined capital allocation.

The company expects EBITDA growth of 4% to 8%, quarterly net pension interest and accretion expenses of $190 million to $220 million, and net capital expenditures of $3.5 billion to $4 billion. It forecasts a normalized effective tax rate of 26% to 28%, excluding potential future changes in tax legislation.

BUD Price Action: Anheuser-Busch InBev shares were down 2.56% at $78.91 at the time of publication on Thursday, according to Benzinga Pro data.

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