AB InBev delivers top- and bottom-line growth in Q3, upgrades earnings forecast

AB InBev has reported organic revenue growth of 7.9% for its third quarter, after it saw strong demand for its beers in Brazil and Colombia.

In Q3, the world’s largest brewer recorded revenue of $14.27 billion, compared with the year-ago quarter’s $12.82 billion figure. The company posted 3.4% growth in its total volumes, and revenue per hl growth of 4.3%.

The brewer has upgraded its forecast for 2021 earnings growth, after posting an increase of 3% in third-quarter EBITDA (earnings before interest, tax, depreciation and amortisation) on a like-for-like basis.

AB InBev says it now expects EBITDA to grow between 10% and 12% in 2021, compared with its previous forecast of 8-12% growth.

During the last quarter, revenue grew 15.3% in Brazil, with beer volumes up by 35% on Q3 2019 levels and by 7.3% on the year-ago quarter, while consumers were also purchasing higher-priced beers.

In Colombia, the brewer delivered top-line and EBITDA growth of more than 30%, led by “record volumes” and supported by the continued easing of pandemic-related restrictions.

Revenue and profits were also up in South Africa, where the company saw volume growth in the mid-twenties versus the year-ago period, and in Europe where growth was in part driven by premiumisation. In the latter market, AB InBev says that its performance is improving as vaccination rates increase and the on-premise recovers.

However, the company saw “cost headwinds” in the US, where revenue and EBITDA were down by 0.8% and 2.6%, respectively. The company also saw a decline in revenue and profits in China, where Covid-19 restrictions disproportionately impacted its key regions, as well as in Mexico.

“During the third quarter, we delivered top- and bottom-line growth versus both 2020 and pre-pandemic levels of 2019 driven by relentless execution, investment in our brands and accelerated digital transformation,” said AB InBev CEO, Michel Doukeris.

“As a result of our performance and our continued momentum we are raising the bottom-end of our EBITDA guidance.”