AB InBev has reported quarterly earnings growth of more than double analyst expectations, with strong margin expansion driving profitability despite a fall in sales volumes.
The world’s largest brewer reported a 7.9% increase in operating profit in the three months ended 31 March. Analysts had expected a 3.1% increase.
Margin expansion, “cost of sales tailwinds” and “disciplined overhead management” were key drivers of profitability, AB InBev said. Revenues grew organically by 1.5% to $13.6bn and increased by 3.7% on a per hectolitre basis due to “disciplined revenue management choices and ongoing premiumisation”, it added.
Volumes, however, remained soft, dipping by 2.2% globally in the quarter.
“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,” said AB InBev CEO Michel Doukeris.
AB InBev’s trading update made no reference to the impact of US tariffs, unlike that of its brewing rivals Carlsberg and Heineken, both of which warned levies could hit consumer sentiment.
Sales volumes for AB InBev in the US were down 5.1% in the quarter. The Stella Artois brewer attributed the slide to fewer selling days, a later Easter and poor weather.
China was another weak spot, with volumes sliding by 9.2% over the period due to “continued industry weakness”.
AB InBev would increase investment behind major brands like Budweiser and accelerate efforts to grow at-home sales to offset challenges in the on-trade market, it said.
In Europe, revenue declined by low single digits, with low-single-digit revenue per hl growth. Volumes also declined by low single digits.
The brewer maintained its full-year earnings guidance of operating profits between 4%-8%.
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