More profit despite lower volumes at AB InBev

(ABM FN) AB InBev saw volumes decline in the first quarter of 2024, while margins and profits increased. This was evident from figures from the beer brewer on Wednesday.

Volumes decreased by 0.6 percent, with own beer volumes decreasing by 1.3 percent, while non-beer volumes increased by 3.5 percent.

The analysts had also expected volumes to be under pressure in the first three months of this year. The consensus took into account an organic decline of 1.0 percent in the past quarter.

AB InBev’s turnover increased by 2.6 percent in the first quarter and revenue per hectoliter increased by 3.3 percent.

The 2.6 percent increase in turnover was in line with analysts’ expectations.

The brewer reported a 6.7 percent increase in the combined revenues of its mega brands, mainly due to Corona’s 15.5 percent growth outside its home market.

Normalized EBITDA rose 5.4 percent to $4.99 billion last quarter, with normalized margin increasing 90 basis points to 34.3 percent.

The consensus among analysts was for an increase in EBITDA of 1.9 percent.

Underlying profit was $1.51 billion in the first three months, compared to $1.31 billion in the first quarter of 2023.

Underlying earnings per share amounted to USD 0.75, up from USD 0.65 in the first quarter last year.

Outlook

For the full financial year, AB InBev expects an increase in EBITDA in line with the medium-term outlook, namely between 4 and 8 percent.

“The results are encouraging to start the year, and the consistent execution by our teams and partners reinforces our belief that we will achieve our growth ambitions in 2024,” CEO Michel Doukeris said in a statement on Wednesday.

Source: ABM Financial News

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