The Bud Light controversy continued to weigh on Anheuser-Busch InBev, which nonetheless managed a small improvement in third-quarter profit on cost control as well as revenue growth in 80% of its worldwide markets.
Anheuser-Busch InBev said Tuesday that third-quarter net profit rose to $1.47 billion from $1.43 billion, with revenue up to $15.57 billion from $15.09 billion. Its underlying earnings per share rose to 86 cents from 84 cents.
Analysts had forecast earnings of 85 cents a share on revenue of $15.79 billion.
In the U.S., operating profit crumbled by 29.3% on a 13.5% drop in revenue, with “approximately two thirds of this [profit] decrease attributable to market share performance and the remainder from productivity loss, increased sales and marketing investments and support measures for our wholesaler partners,” the company said.
Sales in the U.S. have tumbled since transgender star Dylan Mulvaney made a social-media post about a personalized can of Bud Light, triggering anger as well as confusion from its customers. But the company insisted things weren’t getting worse: it highlighted that total beer market share in the U.S. has remained stable since the end of April.
CEO Michel Doukeris, as he’s said before, said consumers want Bud Light “without a debate” and pointed to a survey finding over 40% of lapsed Bud Light drinkers are open to coming back.
Mulvaney is not an issue outside the U.S., notably in Colombia, Mexico and Brazil, where sales are growing.
The company announced a $1 billion stock buyback as well as a $3 billion debt buyback, as it reiterated guidance for the year.
AB InBev shares
ABI,
BUD,
rose 5% in Brussels trade. The stock is still down 14% since the end of March.
“The absence of incremental bad news and some buyback support is reassuring but the increased reliance on Argentina to drive top-line [organic sales growth] and on-going FX headwinds may temper the share price reaction today,” said analysts at Citi led by Simon Hales.
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