By Emma Rumney

LONDON (Reuters) - Anheuser-Busch InBev on Wednesday reported forecast-beating fourth-quarter profits and progress in cutting debts that have hung over the company for a decade, sending its shares up 8% even as China weakness dragged on sales.

Pricier labels like Corona and Michelob Ultra helped AB InBev to push revenues to an all-time high. The world's largest brewer said cost management also drove margin expansion, producing a 10.1% rise in fourth-quarter profits versus analyst forecasts of 7.7%.

The company cut its debt down to a range that investors and analysts said could unlock returns for shareholders that have been stymied for years by high leverage.

"We are turning a corner on debt repayment," said Johannes Moeller, portfolio manager at MW Compounders, an AB InBev investor.

"I expect them to significantly step up both buybacks and dividends over the coming years," he said.

An earlier acquisition drive left AB InBev with some $100 billion in debt built up following the company's blockbuster takeover of SABMiller announced in 2015.

The debt came down to 2.89 times earnings before interest, tax, depreciation and amortisation (EBITDA) by the end of 2024, within the range investors generally see as acceptable for companies.

The group produced strong growth across various key regions, including the U.S. market, where a consumer boycott of core label Bud Light over a social media promotion with a transgender influencer has hurt sales in recent years.

Analysts described the company's results as a strong end to the year. That follows bumper results from rival Heineken, the world's No.2 beer maker, and Carlsberg.

All three brewers forecast further profit growth next year, with AB InBev forecasting between 4% and 8%, adding to optimism around the sector.

Its shares were 7% higher at 0817 GMT, despite a 19% drop in volumes in China that dragged AB InBev's fourth-quarter volumes below expectations.

The brewer makes around a fifth of its sales in the country, analysts estimate, where a weak economy has hit demand for AB InBev's portfolio of pricier labels.

(Reporting by Emma Rumney; Editing by Neil Fullick, Christopher Cushing and Jane Merriman)