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Key Takeaways
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Anheuser-Busch InBev's profit almost doubled as the beer giant reduced costs.
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Selling, general, and administrative expenses fell nearly 6%.
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The company's first quarter revenue missed forecasts as volumes decreased.
U.S.-listed shares of Anheuser-Busch InBev (BUD) gained Thursday as the world's biggest beer brewer easily beat earnings estimates as lower costs offset falling volumes.
The maker of brands including Budweiser and Michelob reported first-quarter net profit of $2.15 billion, nearly double what it was a year ago. Analysts surveyed by Visible Alpha were looking for $1.66 billion. Revenue rose 1.5% year-over-year to $13.63 billion, short of forecasts.
AB InBev’s selling, general, and administrative expenses (SG&A) decreased nearly 6% to $4.19 billion. The company pointed to disciplined resource allocation, overhead management, and optimization of capital expenditures for the decline.
Volumes Fell 2.2% Year-Over-Year
Beer sales declined in the U.S., Europe, and China, but they gained in Latin America and South Africa. Total beer and non-beer volume dipped 2.2%, which the company blamed on "calendar-related factors such as cycling the leap year selling-day benefit in 1Q24 and Easter shipment phasing."
CEO Michel Doukeris said that the consistent execution of AB InBev's strategy "drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025."
Following the report, U.S.-listed shares of AB InBev rose about 2.5% to trade at their 2025 high.
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