AB InBev betters Heineken in Q1 - results data

First-quarter sales increase 1.5% to US$13.63bn
Growth rate for three months to end of March slower than 2024’s +2.7% rise
‘North America’ down 4.7%, ‘Asia Pacific’ at -7.7%
Rises for ‘EMEA’ (+4.8%) and ‘South America’ (+8.5%)
Group volumes slip by 2.2%

AB InBev has booked a steady start to the year, with quarterly sales rising, albeit at a low single-digit rate.

A 1.5% top-line lift from the three months to the end of March was described by the group as “solid”, although volumes were down in the quarter by 2.2%. The performance was slightly ahead of AB InBev’s main brewing rival, Heineken, which last month delivered a 0.9% sales lift for the same period.

Of the company’s self-appointed key markets, the US was hit by adverse weather in the quarter as well as the timing of Easter, which was later this year than last. Subsequently, sales in the country fell by 5.1%, although the Michelob Ultra and Busch Light brands were credited with having gained share in volume terms. That “weather patterns normalised” in the country last month will benefit the wider beer category in calendar Q2.

China also presented challenges, with AB InBev’s sales sliding by 12.7%. Admitting to an under performance versus the industry in the country, the group outlined plans to increase investment around its “megabrands” – Budweiser, Corona and Stella Artois – and upping its attention to expansion of the “in-home” channel.

In the ‘Europe, Middle East and Africa’ reporting region, the later Easter break again impacted Europe, where sales slipped by low single-digits, although the showing was offset by Africa, with the “highly-inflationary environment” in Nigeria contributing to a strong double-digit rise, despite a volumes fall.

Elsewhere, in Brazil, where Heineken is rumoured to be preparing a renewed assault this year, sales were up in both value and volumes terms (+4.6% and 1.4%, respectively), driven by Corona and Stella Artois, AB InBev claims to be the no-alcohol beer leader in the country, setting the scene for the coming months – Heineken believes its namesake brand’s alcohol-free extension leads the category globally.

Brands-wise, and beyond the now-regular reference to Michelob Ultra’s success in the US, AB InBev saw Corona’s sales outside of its home market of Mexico climb by 11.2%, while double-digit sales lifts came from the Cutwater and Nütrl RTDs, again in the US. Corona Cero, meanwhile, saw volumes rise by triple digits, helping the no-alcohol beer portfolio boost its quarterly sales by 34%.

“We are encouraged by our results to start the year, the resilience of the beer category and the consistent execution of our strategy by our teams and partners,” the group said. “Our business is local, with more than 98% of our volume locally produced, and our footprint has structural tailwinds for long-term volume growth with favourable demographics, ongoing economic development and opportunities to increase category participation.

“Our consistent performance … reinforce our confidence in our ability to deliver reliable compounding growth … .”

AB InBev’s official Q1 results announcement