Anheuser-Busch InBev reported a rise in revenue and stuck to its full-year guidance on Tuesday despite a hit to U.S. sales as some drinkers boycotted Bud Light. Its stock was rising.
AB InBev
(ticker: BUD) reported underlying earnings per share of 86 cents on sales of $15.57 billion for the September quarter. Analysts had expected the beer company to report underlying earnings of 84 cents a share on sales of $15.72 billion, according to a FactSet consensus.
The company said it would repurchase $1 billion in shares and up to $3 billion worth of its debt.
Revenue was up 5.0% from the same period a year earlier but total volumes dropped 3.4%. Revenue growth was partly driven by sales in Argentina, where high inflation is boosting prices. Excluding Argentina, the organic revenue increase for the quarter came to 1.6%.
Revenue in the U.S. declined by 14% and sales to American retailers were down 17% as
AB InBev’s
flagship American brand Bud Light is facing a conservative boycott over its marketing partnership with transgender influencer Dylan Mulvaney.
“Our total [U.S.] beer market share has remained stable since the last week of April through the end of September,” the company said in its results.
Last week, mixed-martial arts league the UFC appointed AB InBev’s Bud Light as its official beer in the U.S. and official global beer partner.
AB InBev reiterated its previous guidance that it expects its 2023 earnings before interest, taxes, depreciation, and amortization to grow in line with its medium-term outlook of between 4% to 8% and revenue to grow ahead of Ebitda.
“The absence of incremental bad news and some buyback support is reassuring but the increased reliance on Argentina to drive top-line organic sales growth and ongoing FX headwinds may temper the share price reaction,” analysts at Citi wrote in a research note.
American depositary receipts of AB InBev were up 5% at 11:14 a.m. Tuesday, having fallen 10% this year through Monday’s close.
Write to Adam Clark at [email protected]
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