AB InBev 2Q Net Profit Misses Expectations as US Volumes Dive
August 03 2023 - 1:56AM
Dow Jones News
By Ian Walker
Anheuser-Busch InBev has reported a massive fall in second
quarter net profit--missing market expectations--as a fall in U.S.
volumes offset rises in other regions.
The world's largest brewer--which houses Stella Artois and
Budweiser among its portfolio--said Thursday that overall volumes
fell 1.4%, matching expectations. Within this, North America
volumes fell 14.5%.
Sales in the region have been falling since April when Dylan
Mulvaney, a transgender social-media star, made an Instagram post
about a personalized can of Bud Light that the brewer had sent her
as a gift. The post sparked a boycott that caused sales of Bud
Light, and other brands, to fall.
Net profit for the quarter fell to $339 million compared with
$1.60 billion for the comparable period a year earlier and a
FactSet consensus of $613.35 million.
Revenue for the quarter rose to $15.12 billion from $14.79
billion, driven by pricing actions, premiumization--the strategy of
emphasizing luxury versions of its products--and other
revenue-management moves. Revenue consensus was $15.38 billion.
On an organic basis, revenue grew 7.2%, beating a
company-provided market consensus of 6.4%.
Normalized earnings before interest, tax, depreciation and
amortization--one of the company's preferred metrics which strips
out exceptional and other one-off items--fell to $4.91 billion from
$5.10 billion and a consensus of $4.845 billion.
Looking ahead, AB InBev reiterated that it expects 2023 Ebitda
to grow in line with its medium-term outlook of between 4% to 8%
and revenue to grow ahead of Ebitda from a healthy combination of
volume and price.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 03, 2023 01:41 ET (05:41 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Anheuser Busch Inbev SA NV (NYSE:BUD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Anheuser Busch Inbev SA NV (NYSE:BUD)
Historical Stock Chart
From Jul 2023 to Jul 2024