AB InBev’s Q4 profits beat expectations, with the company reporting an 8% surge in shares. The brewer’s debt reduction efforts have been successful, falling to a range that investors consider acceptable. Pricier labels like Corona and Michelob Ultra contributed to the company’s all-time high revenues.
AB InBev’s Q4 profit exceeded forecasts, driven by cost management and margin expansion. The company cut its debt down to 2.89 times earnings before interest, tax, depreciation, and amortization (EBITDA) by the end of 2024. This move is seen as a positive sign for investors, who expect significant returns in buybacks and dividends.
The brewer’s performance was mixed, however, with sales in China declining 19% due to weak demand. Despite this, AB InBev remains optimistic about its prospects, forecasting between 4% and 8% growth next year. The company’s shares rose 7% at 0817 GMT, driven by the positive results and outlook.
Source: https://www.reuters.com/markets/commodities/brewer-ab-inbevs-q4-profits-beat-expectations-2025-02-26