Brewery group AB InBev has had an excellent quarter with profits growing even stronger than its revenue, thanks to price increases and a consistent strategy of premiumisation.
Better than expected
Revenue at AB InBev, the brewer of global brands such as Budweiser, Corona and Stella Artois, rose 13.2% to 14.2 billion dollars (12.8 billion euros) in the first quarter of 2023, thanks to a 0.9% rise in volume and a 12.4% increase in revenue per hectolitre. Operating profit was even up 13.6% despite rising costs and higher marketing investments. Those figures are better than expected.
The company said it managed to boost margins thanks to price increases and a strategy of premiumisation, betting on more expensive brands and products. Non-alcoholic beers also did well. In Brazil, sales rose 15.7% and profits climbed as much as 26.5%. There was also improvement in China. Still, AB InBev does not think it will be able to continue such strong profit growth throughout the year: the brewer expects ebitda growth between 4 and 8%.
