AB InBev, the Belgian brewer which owns Budweiser and Stella Artois, reported a fall in its drink volumes but offset this by consumers switching to premium brands and higher prices.
Revenues for the company in 2022 reached US$57bln worldwide, improving slightly on 2021’s US$54bln.
In the fourth quarter, sales grew by 10.2%, which disappointed analysts expecting 14% plus due to the World Cup occurring during the period.
However, underlying earnings in the period did remain ahead of City guidance as the world’s biggest brewer posted a 7.6% rise compared to the 7.1% consensus.
For the year overall, pre-tax profits reached US$19.8bn increasing by around 3% year on year.
The company’s earnings were helped by a 10% increase in pricing and premiumisation in the UK and a 12.2% rise in the US, analysts at Barclays said.
Volumes increased at a low single-digit rate in Europe last year, as more people continued to switch to the company’s premium brands.
Around 55% of revenue in Europe came from the company’s high-end brands, the report said.
AB InBev also noted the success of its Perfect Draft product, a portable beer dispenser for use at home, as the company claimed there were more machines in people’s homes than there are pubs in the UK and France.
The Corona owner’s share price remained buoyant today, rising to €54.34 this morning, while Barclays has a €72 target.
The results follow news that rivals Heineken and Carlsberg are expected to continue increasing beer prices in 2023, whether AB InBev follows suit is yet to be seen.