More profit from smaller volumes for AB InBev

More profit from smaller volumes for AB InBev

More profit from smaller volumes for AB InBev

Despite AB InBev’s beer sales dropping 0.2 % in the first quarter, the Belgian-Brazilian beer giant did generate a turnover increase and a gross profit above expectations.


Difficult American market

AB InBev had mixed results in the first quarter: the beer brewer sold 134.8 million hectoliters globally, down 0.2 %, but at the same time, it generated an additional 4.7 % from those lower volumes. First quarter turnover reached 13.1 billion dollar (11 billion euro), up 4.7 % compared to the 3.6 % increase analysts had forecast.


The company continues to struggle in the American market in particular: Budweiser and Bud Lite sales suffer from craft beers’ increased popularity in the United States. AB InBev’s main brands did perform well elsewhere: Budweiser grew 2.5 % and Stella Artois ranked second with a 12.3 % increase, trailing only Corona which sold an additional 25 % worldwide.


AB InBev can wash away its disappointing sales with a gross company profit that exceeded 5 billion dollars (4.2 billion euro) in the past quarter (+ 6.6 %). The beer brewer’s net profit dropped slightly: it dropped from 1.46 billion dollars (1.23 billion euro) to 1.44 billion dollars (1.21 billion euro).

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