AB InBev stock price surges today on financial results release a underlying profits rise

AB InBev, the brand behind Budweiser and Corona beers, reported their Q1 2024 financial results today.

Comparatively, year-on-year, the company saw less revenue growth year-on-year than in 2023, but underlying profits increased.

Underlying profits up

The company’s underlying profit (that is, the profit attributable to equity holders excluding non-underlying items and hyperinflation) was $1.5 billion for the quarter, an increase compared to profits of $1.3 billion for Q1 2023.

Beer sales take a knock

Total volume of sales declined by 0.6%, with beers especially having a harder time. Own beer volumes down by 1.3% and non-beer volumes up by 3.5%.

Revenue also lacking

AB InBev’s revenues increased by just 2.6% for the quarter, led heavily by beer brand Corona’s sales.

The amount was a disappointing one, considering that revenues were up 13.2% in Q1 of 2023, with a 5.4% increase in revenues from global brands like Budweiser, Stella Artois and Corona, outside of their respective home markets.

Interestingly, the company’s noted that 62% of revenues came through B2B digital platforms, with the monthly active user base of BEES reaching 3.1 million users, suggesting that AB InBev’s digital strategy is working.

EBITDA up

Normalized EBITDA (the company’s earnings before interest, taxes, depreciation, and amortisation) increased by 5.4% to $4. 98 billion, with a normalized EBITDA margin expansion of 90 bps to 34.3%.

The AB InBev stock price

Investors reacted positively to the earnings, as did the markets, after a hard quarter for alcohol stocks. The AB InBev share price was trading at ZAR118,29 this morning, up 5.34% at the time of this article going to press.

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