By Michael Susin

Budweiser brewer Anheuser-Busch InBev sold less beer than analysts expected in the fourth quarter, dragged by lingering weakness in China, but said it gained market share in the U.S.

The world's largest brewer--which also makes Stella Artois and Michelob Ultra--on Wednesday said sales volumes for the fourth quarter fell 1.9% organically. This was weaker than analysts' expectations of a 1.3% drop, according to consensus estimates compiled by the company.

The last time AB InBev posted sales volume growth was in the first quarter of 2023.

AB InBev blamed weak performances in China and Argentina for holding back sales volumes.

The brewer said its Chinese business underperformed in a soft beer market in the country as budget-conscious consumers spent less money in bars and restaurants. Sales volumes in China fell 19% in the fourth quarter, marking the third consecutive quarter of double-digit declines there.

In North America, which represented more than a quarter of the company's total revenue and 15% of global sales volumes in 2023, volumes fell 1.1% organically. AB InBev said its Michelob Ultra and Busch Light brands helped its beer portfolio win market share in the U.S. as it boosted marketing investments.

The company is still trying to turn the page on a damaging U.S. boycott that began in the spring of 2023 after transgender influencer Dylan Mulvaney posted an Instagram video about a personalized beer can the brand had sent her as a gift. The post triggered calls for a boycott and AB InBev's sales volumes in the U.S.--the group's largest market--have been under pressure since then.

AB InBev said it saw an improvement in its mainstream beer portfolio throughout the year, gaining market share in the segment in second half.

Revenue in the fourth quarter rose 3.4% to $14.84 billion, driven by higher prices. This beat market expectations of 2.4% growth, according to the company-compiled consensus.

Normalized earnings before interest, taxes, depreciation and amortization rose 10% to $5.245 billion, at the top end of AB InBev's outlook and also ahead of market expectations of 7.7% growth for the quarter. Net profit fell to $1.22 billion from $1.89 billion.

Looking ahead, AB InBev expects 2025 Ebitda to grow in line with its medium-term guidance of between 4% and 8%, but cautioned that the backdrop in certain markets remains challenging. Analysts expect Ebitda growth of 6.7% for 2025.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

February 26, 2025 02:23 ET (07:23 GMT)

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