By Joshua Kirby
Budweiser maker Anheuser-Busch InBev booked its first sales-volumes growth in three years, adding to signs of a rebound in the beer industry and lifting the group's share price.
The world's largest brewer, which counts Stella Artois and Corona alongside Bud in its stable of brands, posted a 0.8% organic increase in total volumes over the first three months of the year, ending a period of sliding volumes dating to mid-2023 as drinkers cut back against a backdrop of high inflation and growing health trends.
The swing back to growth beat analysts' expectations for a continued slip, according to a consensus of estimates compiled by the company.
In beer volumes alone, the company saw a rise of 1.2% on year over the quarter, driven by record sales in some Latin American markets.
Shares jumped 6.4% to 67.18 euros in early trading in Brussels, where the group is listed. As well as Stella, classic Belgian brands like Leffe and Hoegaarden count among AB InBev's labels.
Growth in beer sales at AB InBev adds to signs of recovery in an industry that has endured several years of sliding volumes. Danish brewer Carlsberg said last week that demand for higher-end beers lifted volumes and revenue at the start of the year, while Dutch group Heineken saw its own volumes bounce back to growth over the quarter.
"Cheers to beer," said Michel Doukeris, AB InBev's chief executive. Still, the group's beer sales in North America continued to fall back on year, suggesting some clouds remain over the industry in one of its most important markets.
AB InBev plans further investment behind its biggest brands in order to capture growth ahead, Doukeris said.
"We are well-positioned for 2026," he said. Like other drinks makers, AB InBev is eyeing a boost to sales this summer as sports fans gather for the soccer World Cup due to be held in the U.S., Canada and Mexico from next month.
Momentum in the first quarter helps justify a strong share price, RBC Capital Markets analysts wrote in a note.
"That's a relief… In the event, the results were good," RBC said.
Growth in sales volumes helped drive a better-than-expected increase in the company's revenue to $15.27 billion for the quarter. Adjusted net profit rose to $1.92 billion and earnings before interest, taxes, depreciation and amortization rose broadly in line with revenue to $5.44 billion, with margins flat. On the back of the results, AB InBev backed its guidance for full-year Ebitda to grow in line with a medium-term outlook of 4% to 8%. Analysts expect the company to book a 5.1% increase in Ebitda for the year.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
05-05-26 0401ET
