MW Budweiser's parent company is selling less beer and making more money

By Steve Goldstein

Anheuser-Busch InBev's stock surges after results beat estimates

The maker of Budweiser is selling less beer and making more money as it increased prices and operated more efficiently.

Anheuser-Busch InBev said its fourth-quarter underlying earnings per share rose 7% to 88 cents a share, as revenue rose 3% to $14.84 billion. Analysts expected earnings of 74 cents a share on revenue of $14.18 billion.

A-B InBev shares (BE:ABI) $(BUD)$ rallied 8% in Brussels trade, as the stock's gains hit 17% this year.

Organic volume growth fell by 1.9% in the fourth quarter, which was offset by a 5.4% boost from price and mix.

North America volumes fell by 1.1%, as it turned to Michelob Ultra and Busch Light to offset the lingering weakness from Bud Light sales.

The fastest growth was in Europe, Middle East and Africa, where sales grew by 3.8% thanks to growth in South Africa and easier Nigeria comparisons, helping offset the 12.7% slide in the Asia Pacific due to lower sales in China.

Net debt to Ebitda fell below 3 - at 2.89 times - for the first time since 2015, according to UBS.

Its 2025 outlook of between 4% to 8% organic earnings before interest, tax, depreciation and amortization growth was a little shy of the 6.7% consensus expectations but in line with the company's mid-term framework.

-Steve Goldstein

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February 26, 2025 06:50 ET (11:50 GMT)

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