AB InBev has launched a $6bn share buyback program despite a challenging last quarter in which volumes fell more than expected.
The owner of Budweiser and Stella Artois was expected to kick off a $2bn buyback over the next 12 months, although some analysts did forecast a larger outlay in light of its falling debt pile.
The group is battling flagging sales however, with organic volumes down 3.7% in the three months to 30 September due to weak demand in China and unseasonably poor weather in Brazil. This was behind an analysts’ consensus of a 3.1% fall.
The brewer’s operating profit grew 3.3% in the quarter – ahead of expectations for a 0.9% rise – although this still marked the lowest quarterly profit growth since 2021.
“Driven by the momentum of our megabrands and our innovation in balanced choices and Beyond Beer, our business delivered continued top and bottom-line growth, even as we navigated a dynamic consumer environment,” said CEO Michel Doukeris.
AB InBev said its overall performance in the quarter was driven by megabrands such as Stella Artois and Corona which delivered a 3% revenue increase. This was led by Corona which delivered double-digit volume growth, while no-alcohol beer sales were up 27%.
The US was a positive surprise with the brewer outperforming the market. After it suffered a boycott of its key brand Bud Light, AB InBev said Michelob Ultra was now the number-one brand in the industry by volumes for the year to date.
It is a tough period for all beer and liquor makers due to weak demand in crucial markets. This is fuelled by rising concerns over tariffs and high inflation, leading many drinkers to rein in their spending.
Heineken narrowed its profit outlook earlier this month due to weaker growth in Brazil and the US.
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