Belgian beer giant AB InBev has had an excellent summer, with sales and profits increasing in the third quarter. As a result, the Stella Artois producer feels safe to raise full-year forecasts.
Growth speeds up
A summer full of barbecues, festivals and other events has benefited AB InBev quite well. The brewery group beat expectations, raising its turnover by 12.1 % as it was able to pass on its risen costs to the thirsty public.
Volumes rose as well (by 3.7 %): CEO Michel Doukeris sees in this the proof that its sped-up digital transformation has worked, along with a continued consumer demand. EBITDA rose by 6.5 %, leading to a margin of 35.2 %, and underlying profits amounted to 1.7 billion dollars. AB InBev not only beat analysts’ expectations with this result, but also rival Heineken.
18 million festival pints
On its Belgian home market, AB InBev saw market share increase as both retail and an excellent music festival summer contributed to the huge growth. On Belgian festivals alone, music lovers drank over eighteen million pints of beer. AB InBev BeNeFraLux’ Fabio Sala recognised the recovery of the hospitality and event sector, even compared to the pre-pandemic period. Stella Artois sales, for example, were a third higher than in 2019.
Given the resilience in the beer market, AB InBev raises its full-year forecast. EBITDA should rise by 6 to 8 % (rather than 4 % before), while sales should rise by 11 %.
