Corona and Stella Artois booming in South Africa

ABInbev reported strong growth for its 2024 financial year, with the company’s beer brands a stand-out performer in these results.

ABInbev owns South African Breweries (SAB) and, by extension, many of South Africans’ favourite beer brands, including Carling Black Label and Castle.

The company released its results for the year through December 2024 on Wednesday, 26 February.

As a whole, the company reported record-high revenue and revenue growth in 75% of its markets.

The company’s earnings per share grew from 2.65 US cents in 2023 to 2.92 cents.

ABInbev’s total volumes declined by 1.4% in the 2024 financial year, with own beer volumes down by 2.0% and non-beer volumes up by 1.5%.

Most of the company’s segments performed well, and South Africa was no exception.

The company reported market share gain and margin expansion in South Africa, with double-digit top-and bottom-line growth.

Revenue in the region increased by the low-teens, while volume also grew by mid-single digits, estimated to have outperformed the industry in both beer and Beyond Beer. 

EBITDA in this segment also increased by high-teens with margin expansion.

ABInbev highlighted that the beer industry in its South African operations returned to volume growth in the 2024 financial year following a volume decline in 2023. 

“The momentum of our business continued, with focused investments in our megabrands increasing the Brand Power of our portfolio and driving estimated market share gains in both beer and Beyond Beer,” it said. 

The company said its performance was led by its above core beer brands, which grew volumes by low-teens driven by Corona and Stella Artois.

Its core beer portfolio also continued to grow, delivering a mid-single-digit volume increase. 

In Beyond Beer, ABInbev’s portfolio grew volumes by high-single digits in South Africa, driven by Brutal Fruit, Flying Fish and Redd’s.

The company also reported increased production capacity to meet strong consumer demand, contributing to higher volume sales in South Africa.