Anheuser-Busch InBev (AB InBev) remained confident in its full-year guidance and reported an increase in revenue despite a decrease in U.S. sales, which were impacted by a boycott of Bud Light. The beer company recorded underlying earnings per share of 86 cents on sales amounting to $15.57 billion for the third quarter of the year.
AB InBev’s revenue saw a 5.0% uptick compared to the same period last year, driven in part by sales in Argentina, where higher inflation rates have led to increased prices. However, when excluding Argentina, the organic revenue growth for the quarter stood at 1.6%. Although AB InBev’s total U.S. market share has remained stable since April, revenue in the country declined by 14%, with sales to American retailers falling by 17%, primarily due to a conservative boycott sparked by Bud Light’s marketing partnership with transgender influencer Dylan Mulvaney.
In recent news, AB InBev’s Bud Light was selected as the official beer of the mixed-martial arts league, the UFC, in the U.S. and as its official global beer partner.
The company reiterated its earlier guidance and expects its 2023 earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow within the range of 4% to 8%, while projecting revenue growth to outpace EBITDA.
AB InBev’s American depositary receipts experienced a 3.1% increase in premarket trading on Tuesday, after having declined by 10% since the start of the year.