AB InBev plummets as beer volumes sink again
Shares in AB InBev have sunk more than 9% in premarket trading, as the world’s largest brewer extends its streak of selling fewer drinks with each quarter that passes.
Even though the Budweiser parent company’s second-quarter revenues rose 3% to $15 billion and net profit jumped more than analysts had expected, at 6.5%, total sales volumes dipped 1.9% compared to last year — showing that while AB InBev’s customers are spending more on their drinks, they’re putting away fewer of them.
The brewing giant’s beer division, which includes Budweiser, Corona, Stella Artois, and others, was particularly hard hit, with volumes down 2.2%. Its (much smaller) non-beer segment, however, was up 0.3% last quarter, with brands like Cutwater and NÜTRL clearly making a little splash.
The company said Brazil and China were especially dry regions, where competition is heating up and total volumes tumbled 6.5% and 7.4%, respectively, while North America, where volumes rose 0.3%, was slightly brighter.
