Published by Global Banking & Finance Review®
Posted on July 31, 2025
3 min readLast updated: January 22, 2026
Add as preferred source on GoogleAB InBev shares fell due to declining sales in China and Brazil, with weather and competition affecting performance. Despite this, profits grew.
By Emma Rumney
LONDON (Reuters) -Brewer Anheuser-Busch InBev said on Thursday its second-quarter sales volumes fell more than expected due to weak demand in Brazil and China, adding to investor worries over industry growth and sending its shares to a five-month low.
Shares in AB InBev, maker of brands including Corona and Stella Artois, were down 11.2% by 1407, hitting their lowest since February and heading for their biggest single-day decline since 2020.
Volumes at the world's largest brewer by sales fell 1.9% in the three months through June, versus analyst expectations for a 0.3% decline, with a sharp 9% drop in Brazil a particular negative.
In China, where AB InBev has been struggling to keep pace with growth at rivals, its volumes fell 7.4%.
The company did, however, report revenue and profit growth, with the latter ahead of forecasts at 6.5%.
CEO Michel Doukeris told Reuters by phone that Brazil had been hit by poor weather, which had extended throughout the beginning of July.
"Our brands remain healthy. We had very good growth for premium brands," he said, adding the company could deliver both in Brazil and across South America in the second half.
Some investors, such as Daniel Isaacs, equity analyst at AB InBev shareholder 36ONE, said they were also disappointed that AB InBev had not announced any new share buyback, despite its old programme coming to a close.
AB InBev has in recent quarters consistently outperformed expectations on profits and increased revenues by getting drinkers to pay more for its beers. But it, and other top brewers, have struggled to get volumes growing.
Rival Heineken also sounded cautious about volumes on Monday, citing tariff uncertainties, sending its shares over 8% lower.
Heineken said that U.S. tariff threats had hit consumer confidence and dented beer sales both in the U.S. and elsewhere in the Americas - key regions for AB InBev. But AB InBev did not cite this as a factor.
For AB InBev, analysts pointed to bright spots, including in North America, where the company performed better than expected.
But problems in Brazil, where AB InBev had underperformed the wider industry, overshadowed this, according to Siphelele Mdudu, investment analyst at Matrix Fund Managers, an AB InBev investor.
Mdudu noted, however, that Heineken had grown market share in Brazil, and was planning to up competition there including via a new brewery opening this year.
"In your own backyard, Brazil, you've lost volumes," he said, adding AB InBev "cannot afford to disappoint" in such key markets.
(Reporting by Emma Rumney; Editing by Mark Potter and David Holmes)
Sales volume refers to the total quantity of goods sold by a company during a specific period. It is a key indicator of a company's performance and market demand.
Market competition refers to the rivalry among businesses to attract customers and increase sales. It can influence pricing, product offerings, and overall market dynamics.
Consumer perception is how customers view and interpret a brand or product based on their experiences, beliefs, and feelings. It significantly impacts purchasing decisions.
Economic growth is the increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP).
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