Players in the Zacks Beverages – Alcohol industry are grappling with inflation and rising costs for commodities and logistics, leading to increased operational expenses from heightened advertising and marketing spend. These elevated costs are likely to persist and may squeeze the profit margins of alcohol producers.Despite these challenges, the industry is benefiting from the demand for premium, high-quality products and innovative spirits. Strong momentum in spirits and ready-to-drink (RTD) cocktails is dr ...

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Bud Light cans are seen in the store in Montreal, Canada on June 16, 2023. (Photo by Jakub ... [+] Porzycki/NurPhoto via Getty Images)NurPhoto via Getty ImagesAnheuser-Busch InBev stock (NYSE: BUD) recently reported its Q3 results, with revenues falling short but earnings exceeding the street estimates. The company reported revenue of $15.05 billion and an adjusted profit of $0.98 per share, compared to the consensus estimates of $15.57 billion and $0.89, respectively. Despite an earnings beat, BUD stock de ...

Bud Light used to be the number one beer brand in the United States — but has since dropped down to third place. The decline happened due to a widespread boycott following conservative backlash against a marketing campaign that included transgender social media personality Dylan Mulvaney.The effects of the boycott were immediate and significant — in the month following the airing of the advertisement, sales plummeted by double digits, and estimates from earlier this year peg total losses at a staggering $1. ...

Anheuser-Busch InBev SA/NV (BUD) , aka AB InBev, reported solid results in third-quarter 2024. The company’s earnings beat the Zacks Consensus Estimate and improved year over year. Top and bottom-line growth reflected positive business momentum, owing to the strength of its diversified footprint and consumer demand for its megabrands.AB InBev reported an underlying EPS (normalized EPS, excluding mark-to-market gains and losses related to the hedging of share-based payment programs, and the impacts of hyperi ...

Anheuser-Busch Inbev (BUD) reported $15.05 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 3.4%. EPS of $0.98 for the same period compares to $0.86 a year ago. The reported revenue represents a surprise of -3.84% over the Zacks Consensus Estimate of $15.65 billion. With the consensus EPS estimate being $0.90, the EPS surprise was +8.89%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Financial Data and Key Metrics Changes - The company reported overall EBITDA growth of 7.1% with margin expansion of 169 basis points [8][28] - Total revenue grew by 2.1% this quarter, with revenue per hectoliter growth of 4.6% [11][28] - Underlying EPS increased by 14% to $0.98 per share, driven by organic EBITDA growth [29] Business Line Data and Key Metrics Changes - In North America, EBITDA grew by 13.7% with a margin improvement of approximately 375 basis points, driven by brands like Michelob ULTRA and Busch Light [14] - In Middle Americas, Mexico saw low-single digit volume decline, while Colombia delivered high-single digit top line growth [15][16] - In South America, Brazil achieved mid-single digit top line growth with a 1.3% volume increase, led by premium brands [17] - EMEA reported low-single digit bottom line growth with volume declines, but premium brands contributed significantly to revenue [18] - In APAC, China faced a 16.1% revenue decline due to a soft consumer environment [20] Market Data and Key Metrics Changes - The company gained market share in over 60% of key markets, with premium and super premium brands driving growth [21][24] - The non-alcohol beer segment showed significant growth, with Corona Cero doubling both volumes and revenues [24] - The digital ecosystem captured approximately $12.1 billion in gross merchandising value, a 14% increase year-over-year [25] Company Strategy and Development Direction - The company is focused on three strategic pillars: leading and growing the category, digitizing and monetizing the ecosystem, and optimizing the business [21][25][30] - A $2 billion share buyback program was announced to be executed within the next 12 months, reflecting confidence in long-term growth [9][30] - The company aims to continue premiumization and disciplined resource allocation to drive long-term value creation [10][28] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic operating environment but expressed confidence in the company's ability to invest for long-term growth [10] - The outlook for full-year EBITDA growth has been raised to 6% to 8% based on year-to-date performance [9][32] - Management remains optimistic about long-term fundamentals in China despite current challenges [49] Other Important Information - The company has improved its water use efficiency ratio and reduced emissions across operations, aligning with sustainability goals [27] - The debt profile remains strong with no immediate refinancing needs, allowing for flexibility in capital allocation [29] Q&A Session Summary Question: Assessment of U.S. business progress and future initiatives - Management highlighted improvements in the U.S. market, with brands like Michelob ULTRA and Busch Light gaining momentum and market share [36][39] Question: Insights on the situation in China - Management described the current soft consumer environment in China as challenging but emphasized long-term growth potential and brand strength [44][49] Question: Consumer landscape in Middle Americas - Management noted strong demand and performance across markets, despite some short-term turbulence due to weather and government spending [53][55] Question: Share buyback versus dividends - Management stated that capital allocation decisions are dynamic, focusing on maximizing value creation, with a $2 billion buyback reflecting added flexibility [56][60] Question: Competitive environment in Brazil - Management reported solid growth in Brazil, with premium brands performing well and competition primarily focused on the low-end market [94][95]

Key TakeawaysAB InBev missed third-quarter revenue expectations as the brewer posted a surprise drop in beer volumes.U.S. sales were positive for the first time since before the controversy over the company's relationship with transgender influencer Dylan Mulvaney led to a Bud Light boycott.AB InBev announced a $2 billion share repurchase. American depositary receipts (ADRs) of AB InBev (BUD) slumped 5% Thursday morning as the world's biggest beermaker missed sales estimates on a surprise drop in beer volum ...

Core Viewpoint - AB InBev is expected to report year-over-year revenue and earnings growth for the third quarter of 2024, with a consensus estimate of $15.6 billion in revenues and earnings of 92 cents per share, reflecting a 0.2% and 7% increase respectively from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for AB InBev's third-quarter revenues is $15.6 billion, indicating a 0.2% growth from the prior year's quarter [2]. - The consensus estimate for earnings is 92 cents per share, suggesting a 7% increase from the previous year's reported figure [2]. - In the last reported quarter, AB InBev's earnings per share exceeded the Zacks Consensus Estimate by 7.1%, with an average positive earnings surprise of 5.9% over the last four quarters [3]. Earnings Prediction Model - The current Zacks model does not predict a definitive earnings beat for AB InBev, as it holds a Zacks Rank of 3 (Hold) and an Earnings ESP of -0.27% [4]. Growth Drivers - AB InBev is expected to benefit from premiumization efforts and positive industry trends, focusing on premium beer offerings that align with consumer preferences [5]. - The company has been building a diverse portfolio of global, international, craft, and specialty premium brands, which is anticipated to contribute to revenue growth [5]. - Demand for AB InBev's brand portfolio, along with effective pricing strategies and digital transformation, has supported revenue growth in recent quarters [6][8]. Market Trends - Management has predicted that positive business trends will continue throughout 2024, estimating a 1.5% revenue increase for Q3 2024, with a 2.4% year-over-year growth in revenue per hectoliter [7]. - The resilience in the global beer category is expected to positively impact AB InBev's performance in the third quarter [6]. Cost Pressures - The anticipated third-quarter results may reflect the impacts of elevated commodity cost inflation and increased supply-chain expenses, leading to higher costs of goods sold [9]. - Rising SG&A expenses due to increased business investments and higher operating costs are expected to pressure AB InBev's EBITDA margin [9]. Valuation and Stock Performance - AB InBev is trading at a forward 12-month price-to-earnings ratio of 17.35X, which is below its five-year high of 25.58X and the industry average of 17.61X, indicating an attractive investment opportunity [10]. - Over the past three months, AB InBev shares have risen by 19.1%, contrasting with a 0.9% decline in the industry [11].

America's Leading Brewer Continues Ongoing Investments in its U.S. Manufacturing Capabilities, Building on $2 Billion Spend over Last 5 Years  ST. LOUIS, Oct. 22, 2024 /PRNewswire/ -- Anheuser-Busch (NYSE:BUD), America's leading brewer and maker of Michelob ULTRA, Busch Light, Budweiser, and Bud Light, today announced a new $8 million investment in its St. Louis brewery. Over the last 5 years, Anheuser-Busch has invested nearly $2 billion in its facilities across the country to help create and sustain jobs ...