AB InBev, the world’s largest brewer, has on Thursday reported very strong results for its second quarter.
Revenue increased by 11.3 per cent to $14.79 billion (£12.18bn) in the quarter, with revenue per hectoliter growth of 7.5 per cent. Total volumes grew by 3.4 per cent.
The company’s global brands, Budweiser, Stella Artois and Corona, have seen 9.7 per cent increase in combined revenues outside of their respective home markets.
The normalised EBITDA of $5.09 billion represents an increase of 7.2 per cent despite the anticipated commodity and supply chain cost headwinds.
“Our business delivered sustained profitable growth. The relentless execution of our strategy, the strength of our brands and accelerated digital transformation enabled us to meet the moment in an ongoing dynamic operating environment,” commented Michel Doukeris, chief executive.
The company said it expects the EBITDA to grow in-line with its medium-term outlook of between 4-8 per cent and revenue to grow ahead of EBITDA in the year, thanks to a healthy combination of volume and price.
In Europe, revenue grew by high-single digits, and EBITDA grew by more than 10 per cent, supported by revenue management initiatives, ongoing premiumisation and continued on-premise recovery.
Brian Perkins, president for UK & Ireland at AB InBev subsidiary Budweiser Brewing Group, said the second quarter has been ‘exceptional’ for the business.
“The team has shown remarkable agility executing with speed and impact to bring new products to market thanks to our strong customer relationships and consumer centric strategy. We are proud to use these strengths to continue to support our communities,” Perkins said.
“We have a winning portfolio of beers and a strong innovation pipeline, which will continue to ensure that we remain the brewer of choice for consumers in the UK well into the future. With the premium and super-premium category seeing huge growth, consumers are continuing to choose our beers as they seek out well-known and trusted brands. This quarter has shown that we are well positioned to help retailers, customers and consumers maximise the premiumisation trend through our portfolio of best-loved beers.”