AB InBev shares fell 9% as sales volumes dropped in major markets such as China and Brazil.
Volume Decline in Key Markets
The world’s largest brewer, AB InBev, reported a 1.9% decline in sales volumes for the second quarter, surpassing analysts’ expectations of a 0.3% drop. The decline was primarily driven by a 7.4% decrease in China and a 6.5% fall in Brazil due to unfavorable weather and high comparisons.
Financial Performance Despite Challenges
Despite the volume drop, AB InBev’s quarterly operating profit rose by 6.5% year-on-year, exceeding the 5.7% forecasted by analysts. Revenues increased by 3% on an organic basis, reaching $15 billion, with strong sales in the U.S.
CEO’s Perspective
CEO Michel Doukeris highlighted the resilience of the beer category and the continued success of the company’s major brands, including Stella Artois and Corona.
Market Reactions and Future Outlook
Analysts noted that the significant volume miss in China and Brazil could impact stock performance, which had risen 19% year-to-date. The beer industry faces challenges such as 50% tariffs on aluminum, affecting U.S. beer can production costs.
