Expensive beer brands in demand: Beck's brewer AB Inbev exceeds expectations

04-Aug-2023 - Belgium

Demand for expensive beer brands and price increases helped the world's largest brewer AB Inbev to increase sales in the second quarter despite a decline in volumes. Business in North America was weaker, but this was offset by business in other regions. Overall, the Group performed better than analysts had expected.

Group revenue rose by a good 2 percent year-on-year in the second quarter to 15.1 billion U.S. dollars (13.8 billion euros), the maker of beers such as Beck's, Budweiser and Stella Artois announced Thursday in Leuven, Belgium.

In organic terms - i.e. adjusted for exchange rate changes and effects from the purchase and sale of parts of the company - growth had been a good 7 percent.

However, earnings before interest, taxes, depreciation and amortization (Ebitda), adjusted for special items, fell by 3.7 percent to 4.9 billion dollars due to currency effects and higher costs for raw materials and advertising. Organically, however, there was an increase of 5 percent. For the full year, the Group continues to target growth of 4 to 8 percent on this basis.

Meanwhile, net income attributable to shareholders slumped to $339 million in the second quarter from $1.6 billion a year earlier. That was due to impairment charges on certain financial instruments./mis/stw/jha/ (dpa)

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