Anheuser-Busch InBev NV, the world’s largest brewer, reported earnings that surpassed analysts’ estimates on the back of strong demand in the US and Brazil.
- Third-quarter earnings fell 0.8% on an adjusted basis before interest, taxes, depreciation and amortisation, the company said in a statement Thursday. Analysts expected an 8.9% decline.
- AB InBev’s performance echoes the results of rival brewers Heineken NV and Carlsberg A/S, which reported strong demand from the key markets of Brazil and Russia earlier this week. In Brazil, AB InBev’s beer volume grew by more than a quarter as the government subsidies underpinning consumer income in some communities.
- Despite the strong earnings report, AB InBev is suspending its interim dividend, citing uncertainty about the impact of the pandemic as lockdowns are reinstated across western Europe. “This decision is consistent with our financial discipline and prioritises our deleveraging commitments, which have been impacted by the Covid-19 pandemic,” the company said in the statement.
- In the US, one of the Budweiser maker’s most important countries for revenue, demand was driven by the low-calorie Michelob Ultra beer and new products such as a Bud Light-branded seltzer.
- AB InBev stock has lost 38.4% in the past year.