World: AB InBev records increase in 2023 revenue in spite of dip in US sales

Hiking beer prices led Budweiser owner Anheuser-Busch InBev to profit and revenue growth last year, even though U.S. sales of staple brand Bud Light were curbed by boycott action.

The world�s biggest brewer on February 29 recorded annual revenue of $59.38 billion, up 7.8%, but shy of analyst expectations of $60.48 billion, according to an LSEG-compiled consensus. Volumes sold fell by 1.7%, with beer brands declining by 2.3%.

Core profit (EBITDA) rose 7% annually to nearly $20 billion, also just under a forecast of $20.1 billion.

Belgium-listed shares dipped 0.2% in early trade on February 29.

Fourth-quarter sales came in slightly ahead of expectations at 6.2% growth. But revenue in the U.S. fell 17.3% in the quarter, as sales-to-retailers dropped 12.1% � a drop that the company primarily attributed to declines in sales of Bud Light, which lost its spot as the best-selling U.S. beer.

The company became embroiled in a social media-driven boycott of its core Bud Light brand in the middle of last year. It also weathered wider beer industry struggles from higher input costs and a squeeze on consumer spending.

On February 29, the firm announced a full-year dividend of 0.82 euros ($0.89), up from 0.75 euros in 2022.

AB InBev CEO Michel Doukeris said the results were a �testament to the strength of the beer category, resilience of our business and people, consistent execution of our replicable growth drivers and our unwavering commitment to invest for long-term growth and value creation.�

Analysts at Bernstein on February 29 said the company saw a �solid end� to 2023, as price rises offset declining sales.

However, they flagged �cautious guidance and a tough pricing set-up in the USA,� and noted that sales trends in the final quarter were weaker than expected, driven by the continued hit to North America from Bud Light.

China was a bright spot, with profits up 32% due to the outperformance of premium products, they added.