Anheuser-Busch InBev (AB InBev) on Wednesday (26) reported forecast-beating fourth-quarter profits and progress in cutting debts that have hung over the company for a decade.
Pricier labels like Corona and Michelob Ultra helped AB InBev to push revenues to an all-time high. The world's largest brewer said cost management also drove margin expansion, producing a 10.1 per cent rise in fourth-quarter profits versus analyst forecasts of 7.7 per cent.
The results shows that the company's revenue increased by 2.1 per cent in last quarter of 2024. The growth was led by Corona.
The group produced strong growth across various key regions, including the U.S. market, where a consumer boycott of core label Bud Light over a social media promotion with a transgender influencer has hurt sales in recent years.
ABInBev states, " Through our focus on brand, pack and liquid innovations, the percentage of beer consumers purchasing our brands increased in a majority of our markets. Our mainstream portfolio delivered a low-single digit revenue increase.
"Our global no-alcohol beer portfolio delivered mid-thirties revenue growth this quarter. Corona Cero, the official beer partner of the Olympic Games, delivered triple-digit volume growth and Budweiser Zero grew volume in the low twenties.
"We continued to premiumise our portfolio in Europe, with our premium and super premium portfolio making up approximately 57 per cent of our revenue in 3Q24."
Michel Doukeris, CEO, AB InBev, comments, “Beer is a passion point for consumers and a vibrant category globally.
"The strength of our 2024 results is a testament to the consistent execution of our strategy and the hard work and dedication of our people.
"We delivered EBITDA growth at the top-end of our outlook and a step change in our free cash flow generation. We are investing for the long-term and are confident in our ability to lead and grow the category.”
Analysts described the company's results as a strong end to the year, following bumper results from rival Heineken and Carlsberg. All three brewers forecast further profit growth next year, with AB InBev forecasting between 4 per cent and 8 per cent, adding to optimism around the sector.
