Categories Earnings, Other Industries, Retail

Weakness in beer sales creeps into Anheuser Busch InBev Q3 earnings, stock tanks

Hurt by weakness in beer sales in China and the US, brewing giant Anheuser Busch InBev (NYSE:BUD) aka AB InBev reported third-quarter revenues and earnings that missed Wall Street expectations. BUD shares tanked 8.5% during pre-market hours on Friday.

BUD shares have increased 38% in the year-to-date period.

ab inbev earnings
CREDIT: Blake Guidry/Unsplash)

The Belgian firm reported a modest 2.7% growth in revenues to $13.17 billion, which fell short of the street consensus of $13.82 billion. Adjusted net income of $1.22 per share was, meanwhile, 9 cents short of the analysts’ target.

There has been a change in consumer preferences towards healthier drinks, primarily in the US, hurting sales of soda and beer. The world’s largest brewer was forced to buy up numerous craft brewers over the past few years to maintain its market position in the beer industry.

READ: Coca-Cola beats Q3 revenue expectations; EPS comes in line

The downbeat results and possibility of prolonged weakness has forced the company to step down its expectation for the full year. The parent of Budweiser and Corona beer now sees “moderate” EBITDA growth in FY19, compared to earlier projection of “strong” growth.

“Price increases implemented in South Korea and Brazil drove volume declines, which were exacerbated by softer consumer demand in light of difficult macroeconomic conditions,” the company said in a statement.

Earlier this month, rival firm Constellation Brands (NYSE: STZ) reported mixed quarterly results. The stock, however, fell as the company incurred a bigger loss from investments in cannabis firm Canopy Growth Corporation (GCG).

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

V Earnings: Key quarterly highlights from Visa’s Q1 2023 financial results

Visa Inc. (NYSE: V) reported first quarter 2023 earnings results today. Net revenues grew 12% year-over-year to $7.9 billion. GAAP net income rose 6% to $4.2 billion while EPS grew

Earnings: Highlights of Intel’s (INTC) Q4 2022 financial results

Intel Corporation (NASDAQ: INTC) Thursday reported a decline in adjusted earnings and revenues for the fourth quarter. The semiconductor giant also provided guidance for the first quarter of 2023. Fourth-quarter

McCormick (MKC) expects to drive sales growth in 2023 through pricing actions and cost savings

Shares of McCormick & Company Inc. (NYSE: MKC) were down over 5% on Thursday after the company missed expectations on its fourth quarter 2022 results and provided a lower-than-expected earnings

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top