Bud Light, made by Anheuser-Busch.
Joe Rydell | Getty Images
The rise in beer prices led to the owner of Budweiser Anheuser-Busch InBev While profits and revenues grew last year, sales of the core Bud Light brand in the United States were curbed by boycott measures.
The world's largest brewer on Thursday reported annual revenue of $59.38 billion, up 7.8%, but below analysts' expectations of $60.48 billion, according to the LSEG consensus. Volumes sold fell 1.7%, with beer brands down 2.3%.
Underlying earnings (EBITDA) rose 7% annually to nearly $20 billion, also slightly below expectations of $20.1 billion.
Belgium-listed shares fell 0.2% in early trading on Thursday.
Fourth quarter sales came in slightly above expectations with 6.2% growth. But U.S. revenue fell 17.3% in the quarter, as sales to retailers fell 12.1% — a decline the company attributed primarily to declining sales of Bud Light, which lost its spot as the top-selling U.S. beer.
The company became embroiled in a social media-driven boycott of its core Bud Light brand in the middle of last year. It has also been spared the beer industry's broader woes due to rising input costs and pressure on consumer spending.
On Thursday, the company announced a full-year dividend of 0.82 euros ($0.89), up from 0.75 euros in 2022.
Michel Dockeris, CEO of AB InBev, said the results were “a testament to the strength of the beer category, the resilience of our business and people, the consistent execution of our repeatable growth drivers and our unwavering commitment to investing for long-term growth and value creation.”
Analysts at Bernstein said Thursday that the company expects a “strong end” to 2023, as higher prices offset falling sales.
However, they cited “cautious guidance and aggressive pricing positioning in the USA” and noted that Q4 sales trends were weaker than expected, driven by the ongoing hit to North America from Bud Light.
They added that China was a bright spot, with profits rising 32% due to superior performance of premium products.
