Anheuser-Busch beer premiumisation plans are driving up its sales
GLOBAL beer and beverages group Anheuser-Busch InBev lifted revenues 11.1 percent in its first quarter to March 31 after growing the hectolitres (hl) it sold by 7.8 percent compared with the same time last year.
Topline growth consisted of a mix of 2.8 percent volume and 7.8 percent revenue per hl growth, driven by revenue management initiatives and ongoing premiumisation, chief executive Michel Doukeris said in a statement yesterday.
“Relentless execution of strategy and accelerated digital transformation drove momentum in the first quarter.
“Our teams continued to meet the moment in this dynamic operating environment,” he said.
The group’s mainstream portfolio reported high single-digit revenue growth and outperformed the industry across most of the group’s main markets, according to the group’s estimates.
The non-alcoholic beer portfolio delivered continued revenue growth led by liquid and pack innovations, such as Corona Sunbrew in Canada, and the growth of local brand extensions such as Budweiser Zero in the US and Brahma 0.0 in Brazil.
Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 7.4 percent as top-line growth was partially offset by commodity headwinds and higher supply chain costs.
There was a 6 percent increase in combined revenues of global brands, Budweiser, Stella Artois and Corona, outside their respective home markets.
Some 53 percent of revenue was now derived from B2B digital platforms.
Nearly $300 million (R4.71 billion) of revenue and more than 17 million e-commerce orders were generated by the direct-to-consumer ecosystem.
Total volumes grew by 2.8 percent, with own beer volumes up by 2.2 percent and non-beer volumes up by 6 percent.
Normalised Ebitda of $4.49bn represented an increase of 7.4 percent.
Underlying profit – normalised profit attributable to equity holders of AB InBev excluding mark-to-market gains and losses linked to the hedging of share-based payment programmes and the impact of hyperinflation – came to $1.2bn compared to $1.01bn in the first quarter of 2021.
Underlying earnings per share came to 60 US cents, an increase from 55c in the first quarter of 2021.
“We expect Ebitda to grow in line with our medium-term outlook of between 4 and 8 percent and our revenue to grow ahead of Ebitda from a healthy combination of volume and price,” the group said.
“The outlook for the 2022 financial year reflects our current assessment of the magnitude of the Covid-19 pandemic, which is subject to change as we monitor its ongoing development,” the group added.
The redemption of a further $3.1bn of bonds was completed in the first quarter.