AB InBev reports a mixed performance for the third quarter of 2024.
- The company sees a 13.9% increase in profits, hitting £1.48 billion ($1.97 billion).
- Sales show a modest growth of 2.1%, despite challenging conditions.
- Overall, total volumes fall by 2.4%, with a significant decline in beer volumes.
- Non-beer volumes improve slightly by 0.6% while Corona thrives outside its home market.
AB InBev, a leading name in the beverage industry, has reported a 13.9% rise in profits for the third quarter of 2024, reaching £1.48 billion ($1.97 billion). This positive outcome comes even as the company faces tough consumer conditions that have affected its sales volumes.
In terms of sales, the company experienced a 2.1% increase, which reflects its ability to adapt in a challenging market. However, this growth was accompanied by a 2.4% decline in total sales volumes, a factor that highlights the complexities and difficulties within the market environment during this period.
The breakdown of these figures shows a 3.1% decrease in beer volumes, representing a significant challenge for the company given its reliance on beer sales as a primary revenue stream. In contrast, non-beer volumes rose by 0.6%, indicating a potential area for growth and diversification in an otherwise sluggish market.
AB InBev’s ‘megabrands’ provide a silver lining to the quarter’s performance. Brands like Brahma, Cass, and Skol saw a 3.1% increase in sales, with Corona leading the charge with a remarkable 10.2% growth outside its home market. This suggests strong international demand for the brand, particularly in regions where its appeal resonates with local preferences.
Michel Doukeris, AB InBev’s Chief Executive, expressed confidence in the company’s strategic direction, stating, ‘Beer is a passion point for consumers. Consumer demand for our megabrands and the execution of our mega platforms delivered another quarter of top- and bottom-line growth with margin expansion.’
Despite the positive financial results, AB InBev’s UK division reported a widening of losses over the last financial year, even after implementing price increases. This discrepancy raises questions about the effectiveness of price adjustments in a strained economic climate.
AB InBev’s third-quarter performance underscores the resilience and challenges of navigating a complex global market.
