AB InBev, the world’s largest brewer, posted better-than-expected fourth-quarter sales despite an annual decline in volumes. The company reported a 3.4% increase in revenue to $14.84 billion, beating forecasts by LSEG analysts. However, total volumes declined 1.9% in the quarter and 1.4% over the full-year stretch, largely attributed to weak demand in China and Argentina.
CEO Michel Doukeris attributed the declines to industrial weakness weighing on consumer sentiment, but expressed confidence that global beer demand would recover. He noted that market momentum is good, with the category being “very vibrant.” Despite this, the company remains cautious about foreign exchange fluctuations, particularly the strength of the dollar, which could impact earnings in 2025.
AB InBev has set a medium-term growth target for EBITDA of between 4% and 8%. The guidance comes after a 10.1% increase in fourth-quarter EBITDA and an 8.2% rise across the full year. As the global drinks market shifts towards lower alcohol consumption, AB InBev is embracing non-alcoholic beverages to boost resilience.
CEO Doukeris sees the trend towards moderation as a “global trend,” but believes that non-alcoholic products are opening up new consumption opportunities for beer lovers. The company’s recent acquisition of Britvic has expanded its portfolio to include soft drinks, with around one-third now comprising non-alcoholic beverages.
Despite the challenges, AB InBev remains optimistic about its prospects, citing the growing demand for lower-calorie alternatives and more health-conscious consumers.
Source: https://www.cnbc.com/2025/02/26/ab-inbev-bud-earnings-q4-2024.html