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Anheuser-Busch InBev shares rise on profit beat, reiterated guidance

Published 01/08/2024, 07:12 pm
© Reuters.

Investing.com -- Anheuser-Busch InBev (EBR:ABI) shares on Thursday rose following the company's second-quarter (Q2) earnings report, despite a miss on sales expectations. A profit beat and reiteration of guidance have offset a sales miss, analysts at RBC Capital Markets said.

At 5:10 AM (0910 GMT), Anheuser-Busch InBev was trading 1.2% higher at EUR 55.64. 

Anheuser-Busch InBev has reiterated its FY24 guidance of 4-8% organic EBITDA growth.

Despite the sales miss, the brewing conglomerate reported a profit beat. Organic EBITDA growth for the first half of 2024 (HY24) was 7.8%, with Q2 growth at 10.2%. 

The FY24 guidance range of 4-8% was comfortably met, which has been reaffirmed. EBITDA is expected to grow 8.4% in FY24E based on current consensus estimates.

Q2 organic sales growth missed expectations by 80 basis points, primarily due to disappointing performance in Asia Pacific. 

Asia Pacific was the weakest region, with a notable 5% miss, largely attributed to a double-digit decline in China revenues driven by a soft industry and adverse weather conditions.

North America also missed expectations, although the wider beer category gained share in the US alcohol market.

While organic EBITDA growth in EMEA and China fell short, these misses were more than offset by stronger performances in other regions. Marketing and sales expenses remained flat.

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