AB InBev revenue up, despite US sales plummet

Anheuser-Busch InBev saw its revenue grow by 10% in the first half of 2023, despite a 10.5% plunge in US revenue in Q2 2023.

The world’s largest brewer released its results for the second quarter and first half of 2023 today.

The company’s normalised EBITDA grew by 9.1% in the first half of this year to $9.67 billion (R179.45 billion).

In H1 2023, the company’s US revenue declined by 3.6%, and its EBITDA was down 14.8%.

However, this was offset by growth in the company’s other key markets, including Mexico, Colombia, China, Brazil, Europe and South Africa.

Earnings grew by more than 20% in Brazil, China and Colombia in the second quarter.

In South Africa, the company saw double-digit top-line growth with continued market share gain. Carling Black Label, the number one beer brand in the country, led the region’s performance in Q2 with high-teens volume growth.

“In 2Q23, our mainstream portfolio delivered a mid-single digit revenue increase as double-digit growth in South Africa and Colombia was partially offset by the revenue decline of Bud Light in the US,” the company said.

The company’s overall earnings per share (EPS) decreased in the second quarter, declining from 79 US cents in Q2 2022 to 17 US cents in Q2 2023.

However, the company’s EPS for the first half went up, growing from 84 US cents in H1 2022 to 98 US cents.

AB InBev’s gross profit increased by 8.8%, going from $15.24 billion (R284.19 billion) in H1 2022 to $15.80 billion (R294.50 billion) in H1 2023.   

“We consider this to be a better result than had been feared,” Investec analyst Alicia Forry told Bloomberg. “The unchanged full-year outlook is also positive.”

The company’s share price has reacted to the results released today. Its share price is up more than 4% on the JSE but down around 1% on the New York Stock Exchange.