AB InBev returns to growth as it cheers better beer sales
AB InBev's First Quarter Performance and Market Outlook
By Emma Rumney
Volume Growth and Market Reaction
LONDON, May 5 (Reuters) - Belgian brewer Anheuser-Busch InBev sold more drinks for the first time since 2023 in the first quarter, as growth in major beer brands such as Corona and Michelob Ultra ended a prolonged slide in volumes.
Shares in the world's most valuable brewer were almost 7% higher at 1141 GMT as it also posted revenue and profit well ahead of forecasts. Volumes, which had been expected to fall, instead rose 0.8%.
That brought AB InBev into line with rivals that in recent weeks have also reported their first volume growth in at least a year.
CEO’s Statement and Brand Performance
"Cheers to beer," CEO Michel Doukeris said in a statement, adding the performance reflected the resilience of the category despite weaker demand in key markets.
AB InBev said its top global brands, including pricier labels such as Corona and Stella Artois, helped lift revenues. Its push into non-beer drinks also paid off, with revenues from those brands including canned cocktail label Cutwater jumping 37%.
Regional Success and Analyst Insights
The brewer also beat expectations in Mexico, a key market, overtaking Heineken and other rivals and benefitting from the timing of Easter, analysts said.
Finance chief Fernando Tennenbaum told Reuters he remained optimistic on volumes despite new risks such as the Iran war, which threatens to dampen demand and push up prices of inputs like fertiliser and aluminium for cans.
"We see still volumes going to a good place in the market," he said, pointing to upcoming sporting events like the soccer World Cup.
AB InBev’s Strategy and Future Outlook
Commitment to Outperform and Market Challenges
AB INBEV PLEDGED TO OUTPERFORM IN 2026
Investors are betting 2026 will be a better year for brewers after a difficult 2025 marked by high living costs, shifting drinking habits, stronger competition from beer alternatives and poor weather.
AB InBev has said it will outperform rivals such as Heineken and Carlsberg this year despite those challenges.
Strategic Focus and Analyst Commentary
Siphelele Mdudu, an analyst at AB InBev investor Matrix Fund Managers, said the company had also executed a strategy to focus resources on a handful of key global brands well.
"They've got (that strategy) right; you can't take that away from them," he said.
Financial Results
AB InBev reported a 5.3% organic rise in operating profit for the first three months of the year, topping analyst expectations for 2.6% growth.
(Reporting by Emma Rumney. Editing by Thomas Derpinghaus and Mark Potter)
