Brewer AB InBev's Q1 profit surges ahead of forecasts
FILE PHOTO: Cans of Budweiser beer are displayed on a supermarket shelf in Shanghai, China February 24, 2022. REUTERS/Aly Song/File Photo
LONDON :Anheuser-Busch InBev reported a 7.9 per cent rise in first-quarter operating profit on Thursday, beating analysts' estimate by more than double, as the beer brewer grew its margin despite a fall in sales volumes.
Analysts had expected the world's top brewer to report a 3.1 per cent rise in organic operating profit in the three months ended March 31.
The brewer behind Corona and Stella Artois has cheered investors with its performance in recent quarters. But U.S. President Donald Trump's tariffs now pose a threat to consumer sentiment in one of its most important markets, the United States.
AB InBev saw a 5.1 per cent year-on-year drop in U.S. revenues in the reported period and attributed the decline to fewer selling days, a late Easter and bad weather.
The company sold 2.2 per cent less beer globally in the quarter, a decline that was less severe than feared. Industry peers, such as Heineken, also reported lower sales volumes.
Reduced sales costs and effective overhead management boosted margin expansion, AB InBev said.
"The consistent execution of our strategy by our teams and partners drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025," CEO Michel Doukeris said.
