Anheuser-Busch InBev, the brewing behemoth behind iconic brands like Stella Artois and Corona beer, has reported a 2.6% increase in first-quarter sales, aligning with market forecasts. However, the lingering impact of a year-old boycott on its flagship brand, Bud Light, continues to weigh on the company’s performance.
Despite challenges, AB InBev managed to exceed expectations in beer sales volume, with a marginal decline of 0.6% compared to the anticipated 1% drop forecasted by analysts. Notably, while own beer volumes experienced a 1.3% decline, non-beer volumes surged by 3.5%.
The company attributed its sales growth to robust performance in the Middle Americas, South America, Africa, and Europe. However, weaker results in the Asia-Pacific region and North America offset some of these gains.
Commenting on the results, Michel Doukeris, Chief Executive of AB InBev, expressed confidence in the company’s performance, citing the strength of the beer category and the global footprint of its diverse portfolio. Doukeris emphasized the consistent execution by AB InBev’s teams and partners, underscoring the company’s commitment to achieving its growth ambitions for 2024.
AB InBev reported a significant growth of 6.7% in combined revenue from its megabrands, with Corona leading the way with a remarkable 15.5% growth outside its home market.
However, the Bud Light boycott in the United States continues to pose challenges for AB InBev, impacting its sales performance in the region. The boycott, which began roughly a year ago, has resulted in Bud Light losing its status as the best-selling U.S. beer. While the first quarter of 2024 marks the final quarter of comparative challenges due to the boycott, AB InBev anticipates improved comparative numbers moving forward, as figures from a year ago will now include the boycott’s impact.
