Profits jump by 9% as Budweiser and Corona benefit from higher beer prices

The world’s largest brewer AB InBev, which owns brands including Budweiser, Stella Artois and Corona, has posted a first-quarter growth in profits of almost 9%,driven by price increases and volume recovery.

The group saw a 6% increase in combined sales of its global brands, Budweiser, Stella Artois and Corona, outside their respective home markets.

Underlying profit in the first three months of 2022 was up 9% by £0.96 billion ($1.2 billion), compared to £0.88 billion ($1.1 billion) a year ago.

Total revenues were up 11.1% to £10.5 billion ($13.2 billion), up from £9.79 billion ($12.3 billion) last year.

Sales volumes also grew, increasing by 2.8%, with beer volumes up by 2.2% and non-beer volumes up by 6%.

READ MORE: Budweiser UK aims to be net zero by 2026

EBITDA – earnings before interest, taxes, depreciation, and amortization, which is typically used as an indicator of the overall profitability of a business, increased by 7.4% to £3.6 billion ($4.5 billion) in the quarter.

“Relentless execution of our strategy and accelerated digital transformation drove continued momentum in the first quarter, delivering an 11.1% increase in the top-line through a combination of both volume and revenue per hl growth,” said chief executive Michel Doukeris.

“Our teams continued to meet the moment in this dynamic operating environment to deliver 7.4% EBITDA growth.”

Looking forward, the group expects EBITDA to grow in line with its medium-term outlook of between 4-8% and revenue to grow ahead of EBITDA from a combination of volume and price.

The company warned that its outlook for 2022 reflects its current assessment of the scale and magnitude of the Covid-19 pandemic, which is subject to change as it continues to monitor ongoing developments.

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