Anheuser-Busch InBev reported a 7.9 per cent rise in first-quarter operating profit on Thursday, beating analysts’ estimate by more than double, as the beer brewer grew its margin despite a fall in sales volumes.
Analysts had expected the world’s top brewer to report a 3.1 per cent rise in organic operating profit in the three months ended March 31.
The brewer behind Corona and Stella Artois has cheered investors with its performance in recent quarters. But US President Donald Trump’s tariffs now pose a threat to consumer sentiment in one of its most important markets, the United States.
AB InBev saw a 5.1 per cent year-on-year drop in US revenues in the reported period and attributed the decline to fewer selling days, a late Easter and bad weather.
The company sold 2.2 per cent less beer globally in the quarter, a decline that was less severe than feared. Industry peers, such as Heineken, also reported lower sales volumes.
Reduced sales costs and effective overhead management boosted margin expansion, AB InBev said.
“The consistent execution of our strategy by our teams and partners drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025,” CEO Michel Doukeris said.
AB InBev’s statement notably didn’t mention the potential impact of the sweeping US tariffs, unlike peers like Heineken and Carlsberg, which warned that levies could dent consumer sentiment.
The company is at risk of a direct hit from tariffs on aluminium, which it uses to make beer cans. Industry sales may also suffer if levies hurt the economy and curb consumer spending on beer.
The brewer has faced headwinds in China, where its portfolio of high-end brands struggled in a sluggish economy, causing AB InBev to trail its peers.
The company reported a weak first quarter in China, with volumes dropping 9.2 per cent.
The brewer said it was boosting investments in key brands like Budweiser and ramping up efforts to grow at-home consumption as spending elsewhere, like in bars, comes under pressure.
- Reporting by Emma Rumney; Editing by Christian Schmollinger and Sumana Nandy, of Reuters.
