AB InBev reports 7.9% Q1 profit growth despite volume decline, market headwinds
The global brewer posted a 7.9% rise in operating profit, outpacing analyst expectations despite lower beer volumes and market challenges.
BELGIUM – Anheuser-Busch InBev has reported a stronger-than-expected 7.9% increase in organic operating profit for the first quarter of 2025, significantly surpassing the 3.1% rise forecasted by analysts.
The world’s largest brewer achieved this growth despite a 2.2% global decline in beer volumes, thanks to effective cost control measures and improved operational efficiency.
The company’s total revenue for the quarter ended March 31 rose by 1.5%, supported by a 3.7% growth in revenue per hectoliter. However, reported revenue fell by 6.3% to US$13.63 billion, mainly due to unfavorable currency translations.
AB InBev’s underlying profit reached US$1.61 billion, up from US$1.51 billion in the same period of 2024. Reported profit attributable to equity holders nearly doubled to US$2.15 billion, compared to US$1.09 billion a year earlier, aided by non-underlying items.
In the United States, one of AB InBev’s core markets, revenue declined 5.1% year-on-year. The company attributed the drop to fewer selling days, adverse weather conditions, and the timing of the Easter holiday.
While rivals such as Heineken and Carlsberg have raised concerns over potential U.S. tariffs on aluminium, AB InBev did not directly address the issue but noted that 98% of its beer volume is produced locally.
China remains a difficult market for the brewer, with sales volumes decreasing 9.2% in Q1. The premium brand portfolio struggled amid the country’s slow economic recovery, resulting in lost market share to competitors.
To adapt to evolving consumer habits, AB InBev is intensifying investment in core brands like Budweiser and encouraging at-home consumption, as on-premise demand in bars and restaurants continues to soften.
Chief Executive Officer Michel Doukeris credited the positive performance to the consistent execution of the company’s long-term strategy, reinforcing its confidence in achieving its 2025 goals.
For the full year, AB InBev expects its EBITDA to grow in line with its medium-term outlook of approximately 4.8%, reflecting its latest evaluation of inflationary trends and other macroeconomic conditions.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
