AB InBev beats expectations with rise in beer sales

AB InBev, the world’s largest brewer, has reported better-than-expected results for the first three months of the year. Beer sales and profits both increased.

The company sold 136.4 million hectolitres of beer in the first quarter, up 0.8% compared with the same period last year. Analysts had predicted a slight decline.

Strong performance from key brands helped drive results. Stella Artois saw revenues rise by 14% outside its home market, while Corona and Michelob Ultra also performed well as part of the company’s premium range.

AB InBev also benefited from growing demand for alcohol-free beer, with revenues in that segment rising by 27%. Sales of non-beer products, such as ready-to-drink cocktails, increased by 37%.

Overall, the brewer’s revenue rose by 5.8% to $15.3 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 5.3% to $5.4 billion. Both are above market expectations.

Despite weaker performance in regions such as North America and China, the company saw stronger growth in Central America, particularly in Mexico.

AB InBev said it expects steady growth for the rest of the year, forecasting EBITDA to increase by between 4% and 8%.
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