AB InBev sees sales fall in China and Brazil
AB InBev has seen sales take a nosedive in its second-quarter due to reduced demand across Brazil and China.
The results, which led to the beer business which owns brands such as Corona and Stella Artois, see its shares fall 11.2% after growing concerns among investors, marks a significant single-day decline for the business.
AB InBev’s sales volumes dipped 1.9% in the three months through June and have shown a 9% drop in Brazil and a 7.4% fall in China.
Despite the struggles, AB InBev has reported both revenue and profit growth, with the latter ahead of forecasts at 6.5%.
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Speaking about the results, AB InBev CEO Michel Doukeris highlighted the positives: “EBITDA increased by 6.5% and the ongoing optimisation of our business drove underlying EPS growth of 8.7%.”
Doukeris also pointed out how “beer is a passion point for consumers” and noted “the resilience of the beer category” as positives as well as the fact that “megabrands delivered another quarter of profitable growth”.
Addressing the challenges, Doukeris talked only of the company’s “confidence” in its future and added: “While the operating environment remains dynamic, the consistent execution of our strategy by our teams and partners drove a solid first half of the year and reinforces our confidence in delivering on our outlook for 2025.”
Last year, poor Asia Pacific sales dragged down AB InBev volumes. At the time, the beer giant said volumes fell more than expected as a consumer spending slowdown had led to drinkers looking to buy cheaper beer.
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