Anheuser-Busch InBev sees uptick in beer demand

The world’s largest beer company, Anheuser-Busch InBev, delivered a strong first quarter, the company announced yesterday.

Volumes rose 0.8%, surprising analysts and marking a notable recovery after declines since 2023.

AB InBev also reported better-than-expected revenue growth of 12%.

Operating profit increased 5.3%, beating analyst estimates of 2.6%, signaling improving demand despite a challenging environment.

The Belgian-based brewer owns many of the world’s most popular beer brands, including Budweiser, Corona, Stella Artois, and Michelob Ultra.

The brewer saw major growth coming from Latin America. Shares of the Brazilian arm of the company soared, marking their largest rise in more than 27 years, after higher-than-expected beer volumes in the country boosted first-quarter results.

The company also beat expectations in Mexico, helped partly by Easter timing.

Rising beer sales at AB InBev signal a recovery, but weren’t enough to push overall sales into positive territory across the continent.

The brewer’s diversification strategy delivered results. Non-beer revenue led by Cutwater Spirits jumped 37%, reflecting strong demand for ready-to-drink beverages.

The company also reported a 27% increase in quarterly revenue from non-alcoholic beverages.

Despite inflation, high living costs, and rising input costs driven by global tensions, the company maintained its full-year guidance and aims to outperform competitors like Carlsberg this year, as investors expect a gradual industry recovery.

The Danish brewer reported positive volume after falling last year.