AB Inbev’s first-quarter results suggest that recent price hikes by the world’s largest brewer to offset higher costs have not yet deterred consumers from buying its beer.
The Belgium-based firm sold 2.8% more drinks by volume in the three months to 31 March, with beer volumes up by 2.2% and non-beer rising 6.0%. AB Inbev saw increases across Latin America and Europe as bars and restaurants reopened, but declines in North America and the Asia-Pacific region.
Group revenue climbed 11.1% to $12.3bn, with AB Inbev noting that it had seen a 6.0% increase in combined revenues of its global brands – Budweiser, Stella Artois and Corona – outside of their respective home markets.
Core profit (EBITDA) was up 7.4% at $4.49bn, exceeding average forecasts for a rise of 4.6%. AB Inbev now expects EBITDA to rise between 4% and 8% in 2022, in line with its medium-term growth target.
In recent weeks, several consumer goods firms and market analysts have warned that demand for branded goods is likely to wane in the months ahead as cash-strapped consumers start switching to cheaper own-label products to save money.
However, AB InBev’s results mirror those of Heineken and Carlsberg, which said that rising consumer prices have yet to dent demand for their beer or pricier premium brands.
NAM Implications:
- Some drink to remember, some to forget…
- Hopefully more of the former, in this case…
