AB InBev beats estimates as beer drinkers take price hikes

Earnings before interest, tax and depreciation rose 7.2% in the second quarter.
Bottles of Anheuser-Busch InBev NV brand beverages are displayed in the visitors center at the company's Budweiser brewery. Image: Luke Sharrett/Bloomberg

AB InBev, the world’s largest brewer, posted better-than-expected sales and profit in the second quarter as consumers drank more beer at higher prices.

The Budweiser and Corona maker said sales and volumes rose in most major markets, except for China, where Covid-19 lockdowns crimped consumption.

Brewers have been raising prices to offset higher costs as pubs and bars have reopened and social gatherings return. So far, consumers have kept up drinking despite soaring inflation in the US, Europe and other parts of the world.

Chief Executive Officer Michel Doukeris said the strength of the company’s brands, which also include Stella Artois,  “enabled us to meet the moment in an ongoing dynamic operating environment.”

The Leuven, Belgium-based company reiterated its annual Ebitda growth target of 4% to 8% citing “a healthy combination of volume and price” it said in a statement Thursday.

Earnings before interest, tax and depreciation rose 7.2% in the second quarter, beating analysts’ expectations. Analysts had predicted earnings would rise 6.7%, according to the average of a Bloomberg survey.

The company also said revenue grew by 11.3% in the second quarter, beating estimates of 10.4%. Volumes increased by 3.4%.

© 2022 Bloomberg

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