From Yahoo Finance: 2025-05-08 01:14:00

Anheuser-Busch InBev reported a 7.9% rise in first-quarter operating profit, exceeding analyst expectations. Despite a fall in sales volumes, the world’s biggest brewer boosted its profit margin. The company’s shares rose over 4% in Europe and over 2% in premarket trading on Wall Street.

AB InBev saw a 5.1% drop in U.S. revenues attributed to fewer selling days, a late Easter, and bad weather. The company sold 2.2% less beer globally in three months, with reduced sales costs and effective overhead management boosting margins.

Analysts highlighted AB InBev’s strong performance in South American nations like Brazil, showcasing the company’s geographically diverse footprint. The company did not mention potential impacts of U.S. tariffs, unlike competitors Heineken and Carlsberg who warned about denting consumer sentiment.

AB InBev faces direct impacts from tariffs on aluminum used for beer cans. The company stated 98% of its beer volumes are locally produced. Industry sales may suffer if tariffs hurt the economy and consumer spending on beer. The brewer is focusing on key brands like Budweiser and growing at-home consumption amidst challenges in China.

Read more: Bud Light brewer AB InBev’s profit surges to top forecasts despite drop in sales volumes