AB InBev has beat analysts expectations for profit in its second quarter, despite a downturn in consumer spending in Brazil and China causing a 1.9% decline in global volumes.
Earnings before interest and taxes at the Budweiser brewer climbed 10.2% organically in the three months ended 30 June 2025, well ahead of analysts’ predictions of a 6.3% rise. Earnings per share of $0.98 were also better than consensus ($0.95).
Profits were boosted by margins improving by 116 basis points to 35.3%, and a 4.9% rise in revenue per hectolitre. That more than helped to offset the decline in volumes, leading to a topline lift in organic revenue of 3%.
However, there will be concerns over weak volumes in both Brazil and China, which fell by 6.5% and 7.4% respectively. Both markets also posted a decline in revenues and would likely “weigh on sentiment”, said Jefferies analyst Ed Mundy. Shares in AB InBev fell by around 9% in early morning trading on Thursday (31 July).
“Adverse weather” and “soft” trading conditions affected sales in Brazil, while “continued weakness” in “key regions and channels” were to blame in China, AB InBev said.
Volumes in Europe were also flat, though revenue grew by low single digits as consumers continued to trade up to posher brews. In the US, revenue rose 2.1%, while volumes declined 2.1%.
Revenue from AB InBev’s megabrands grew 5.6% in the quarter, with Corona performing particularly well. The brew grew by 7.7% outside its home market of Mexico, AB InBev said.
Meanwhile, the brewer’s no-alcohol portfolio posted a 33% revenue increase. Corona was again the standout performer, with Corona Cero nearly doubling volumes.
The company maintained its full-year outlook, guiding EBITDA growth for FY2025 would be between 4% and 8%.
AB InBev CEO Michel Doukeris said the results demonstrated “the resilience of the beer category and the continued momentum of our megabrands”.
“While the operating environment remains dynamic, the consistent execution of our strategy by our teams and partners drove a solid first half of the year and reinforces our confidence in delivering on our outlook for 2025,” he added.
No comments yet