InBev’s earnings soar as virus constraints ease

Anheuser-Busch InBev (AB InBev), the world’s largest brewer, drove second-quarter revenue to above pre-pandemic levels and boosted profit sharply thanks to restrictions easing in its major markets.

A year after its worst quarter of the Covid-19 crisis, the brewer of Budweiser, Stella Artois and Corona benefited from higher beer consumption in the Americas, Europe and SA, including a leap of more than 50% in Colombia.

Only in China, which moved out of its coronavirus lockdown earlier in 2020, were beer volumes lower.

Michel Doukeris, former North America zone head who took over as CEO from fellow Brazilian Carlos Brito on July 1, said that revenue in the AprilJune period was 3.2% higher than in the matching period of 2019.

AB InBev stood by its forecast that earnings before interest, tax, depreciation and amortisation (ebitda) would grow between 8% and 12% this year, with revenue increasing at a faster pace with healthy volumes and prices. In the second quarter, the figure rose 31% like for like to $4.85bn, against consensus expectations for a 35% increase, according to the company-compiled consensus.

Still, the company sounded a note of caution, saying its outlook reflected its current assessment of the scale and magnitude of the pandemic and could be subject to change.

In a clear sign that the pandemic and related restrictions are not over, SA instituted a new alcohol sales ban for four weeks from late June. Continuing restrictions in South Korea led to lower beer sales there.

The brewer also reported lower profits in its two biggest markets, the US and Brazil, as the costs such as of cans and distribution rose.

The world’s second-largest brewer, Heineken, reports its first-half results on Monday, with global number three Carlsberg on August 18.