Anheuser-Busch InBev (AB InBev), the world’s largest brewer, reported higher-than-expected third quarter earnings on Thursday and saw its South African operations deliver double-digit growth boosted by its core brand in the country, Carling Black Label.
“Our performance was led by over 30% revenue growth in our leading core brand, Carling Black Label. Our premium, super premium and Beyond Beer portfolios all delivered a double-digit increase in volumes,” it said.
In South Africa, Brutal Fruit and Flying Fish had also delivered continued double-digit volume growth.
AB InBev said it had invested further in capacity to support growth, which was expected to come online in the fourth quarter of 2022.
In April, AB InBev’s subsidiary, South African Breweries, reaffirmed its commitment to ignite economic growth in South Africa with a pledge to invest an additional R920 million into its Prospecton and Ibhayi breweries, boosting its total investment commitment for 2022 to R4.5 billion.
Meanwhile, AB InBev raised its 2022 outlook to the top end of its previous range.
The maker of Budweiser, Corona and Stella Artois said core profit – earnings before interest, tax, depreciation and amortisation (Ebitda) – rose 6.5% on a like-for-like basis to $5.31 billion (R92bn), above the 5.2% gain expected by analysts in a company-compiled poll.
The Belgium-based brewer said it now expected core profit to rise by between 6% and 8%. It had previously given a 4% to 8% range.
It said it was the best quarterly volume performance this year, driven by accelerated digital transformation and continued consumer demand for its brand portfolio.
CEO Michel Doukeris said: “We delivered broad-based volume growth of 3.7% this quarter, resulting in an accelerated increase in revenue of 12.1%. We continue to see strong consumer demand for our portfolio and a resilient beer category as we navigate the dynamic operating environment. As a result of our performance and continued momentum, we are raising the bottom end of our FY22 Ebitda outlook.”
Its volume momentum accelerated this quarter as it delivered 3.7% growth, even in the context of the ongoing dynamic operating environment. Top line grew by 12.1% with 8% revenue per hectolitre (hl) growth, driven by revenue management initiatives and the continued move to premium products across most of its markets.
AB InBev’s BEES, a business-to-business (B2B) platform, is now live in 19 markets and had reached 3.1 million monthly active users as of September 30, a 7% increase versus the second quarter of 2022.
In the third quarter its mainstream portfolio continued to outperform the industry across the majority of its focus markets, according to the beer maker’s estimates, and delivered revenue growth in the low teens, led by particularly strong performances in Mexico, Brazil and South Africa.
Its global non-alcohol beer portfolio delivered double-digit revenue growth this quarter led by Budweiser Zero and Stella Artois Liberté in the US.
Meanwhile, its core portfolio grew revenue in the low teens, led by continued double-digit growth of Michelob Ultra in the US and Mexico and further expansion of Spaten in Brazil.
Global brands grew revenue by 12.7% outside of AB InBev’s home markets, led by Corona with 23.5% growth. Budweiser grew by 8.9% despite the impact of Covid-19 restrictions in China, the brand’s largest market. Stella Artois grew by 7% with continued growth in focus markets such as the US and Brazil.
AB InBev said its global Beyond Beer business grew revenue by more than 10% this quarter, contributing more than $400m of revenue. In the US, within the spirits-based ready-to-drink segment, its portfolio continued strong double-digit growth, ahead of the industry, led by Cutwater and NÜTRL vodka seltzer.
– Additional reporting by Reuters
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