Anheuser-Busch InBev's volumes missed analyst estimates last quarter as sluggish beer sales in China and the US offset growth elsewhere at the world's biggest brewer. The maker of Stella Artois and Budweiser reported a 0.4% rise in organic volumes for the period, announced Thursday, falling short of the average analyst estimate.
Growth in Latin America and AB InBev's non-beer category, which includes canned cocktails and carbonated soft drinks, was offset by a decline in beer volumes, particularly in China. Poor weather discouraged people from drinking in bars and restaurants there. The Belgium-based company is countering soft beer demand in some developed markets by focusing on "megabrands" such as Corona and Michelob Ultra, along with emerging markets. AB InBev said 60% of Michelob Ultra's volume growth came from markets outside the US in the third quarter.
The company's shares are up 33% so far this year, outpacing rivals Carlsberg A/S and Heineken NV. Organic revenue growth reached 4.9% in the third quarter, ahead of expectations, while adjusted earnings before interest, tax, depreciation and amortization missed estimates. AB InBev kept its forecast for up to 8% growth in Ebitda for the year.
Heineken surprised investors on Wednesday with a bigger-than-expected jump in third-quarter volumes, driven by strong beer uptake in Asia and an improvement in the Americas. Rising everyday costs and concerns over the health impact of drinking are pushing alcohol companies to diversify their portfolios. AB InBev is expanding into ready-to-drink beverages, including Cutwater cocktails and NÜTRL, a vodka-based hard seltzer.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing