Budweiser-maker says beer proving resilient to inflation

The Belgium-based brewer also succeeded in pushing through higher prices or persuading consumers to shift to higher-priced "premium" brands.

The world's largest brewer Anheuser-Busch reported higher-than-expected quarterly earnings as beer sales accelerated and raised its 2022 outlook to the top end of its previous forecast range.

The maker of Budweiser, Corona and Stella Artois sold 3.7% more beer and other drinks between July and September, a growth rate faster than that seen in the first or second quarters, with strong expansion in Mexico and South Africa.

The Belgium-based brewer also succeeded in pushing through higher prices or persuading consumers to shift to higher-priced "premium" brands in all major markets except China, where the "zero-Covid" policy has curbed economic growth.

Chief Executive Michel Doukeris said beer was proving resilient in the face of inflation, with consumers still willing to pay a little bit more for "premium" brands as employment remained high.

He said that even in Europe, where consumers are switching to lower-cost grocery retailers, they continued to buy established beer brands and, in some cases, were choosing beer instead of higher-priced wine or spirits.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6.5% on a like-for-like basis to €5.32bn in the third quarter, above the 5.2% forecast by analysts in a company-compiled poll.

The company said it now expects its core profit to rise by between 6% and 8% this year, from a previous range of 4% to 8%, which it maintains as a medium-term outlook.

AB InBev shares rose 6.6% to €50.35, one of the strongest performers on the FTSEurofirst index of leading European shares.

Reuters