AB InBev's Q1 Profit Exceeds Expectations Amid Mixed Market Performance

Published 8 hours agoBUD

AB InBev's Q1 Profit Exceeds Expectations Amid Mixed Market Performance

Anheuser-Busch InBev (AB InBev) reported a strong first-quarter performance in 2025, with its operating profit rising by 7.9%, significantly outpacing analyst predictions of a 3.1% increase. This financial milestone was achieved despite a 2.2% dip in global beer sales volumes. Reports from Reuters highlight the duality in the company's performance, with positive profit margins countering some market challenges.

Delving into specific markets, AB InBev faced a 5.1% revenue drop in the U.S., impacted by fewer selling days, an unusually timed Easter, and poor weather. In China, the company experienced a 9.2% decline in volume sales, as premium brands struggled amid economic headwinds. Nonetheless, AB InBev managed to maintain robust profit margins through cost reductions and better management of overheads.

Amidst these challenges, AB InBev remains optimistic about the year ahead, maintaining a forecast for organic EBITDA growth of between 4% and 8% for 2025. The company plans a capital expenditure of $3.5 billion to $4 billion and continues its focus on reducing debt, now at a net debt-to-EBITDA ratio of 2.89x, its lowest since 2015. Additionally, the Board has recommended a significant 22% increase in dividends, up to €1 per share, reflecting the company's commitment to delivering value to its shareholders.

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