AB Inbev: Budweiser maker backs guidance despite falling volumes
Budweiser maker AB Inbev backed its full-year guidance despite reporting a fall in volumes due to weak demand in the US and soft industry in Europe in the third quarter.
The drinks giant said that volumes fell by 3.4 per cent, with demand in other regions offset by falls in America and Europe.
Earlier this year, the beer giant chose transgender influencer Dylan Mulvaney to promote the alcoholic drink, sparking outrage from American conservative commentators, celebrities and anti-trans hate groups.
The company also announced a $1bn (£82m) share buyback scheme which will run over the next 12 months, and also said it would offer buyback bonds worth $3m (£2.47bn).
It comes as Ab Inbev is looking to trim its debt pile following a series of acquisitions it made over the last year.
Elsewhere, the Corona and Stella Artois maker reported revenues of $15.5bn (£12.7bn) up five per cent on last year’s figures, which is said was driven by demand for its premium and super premium brands such as Leffe.
Looking ahead to the rest of the year, the company maintained its growth expectations of a rise in EBITDA of between four to eight per cent.
Analysts at Jefferies this morning said they expect the group to deliver towards the “upper end”.
They said: “The company has launched a $1bn buyback for [the] next 12 months, which points to repair and opportunities for value creation.”
Michel Doukeris, chief executive at AB Inbev, said: “The strength of our global footprint delivered another quarter of top-and bottom-line growth.
“Revenue increased by 5.0 per cent with an EBITDA increase of 4.1 per cent. We continue to invest in our strategic priorities for the long-term.”