World: AB InBev launches $6 billion buyback despite continuing beer sales decline

Budweiser brewer Anheuser-Busch InBev launched a $6 billion share buyback, citing solid underlying results, but said a weak performance in China weighed on its beer sales volumes.

The world’s largest brewer on October 30 said its board approved a $6 billion share buyback program, which it plans to execute over the next two years, after making progress in its debt-reduction efforts and delivering solid results. AB InBev also said it approved an interim dividend of 0.15 euros (17 dollar cents) per share for the 2025 fiscal year.

It reported a net profit of $1.05 billion for the third quarter, down from $2.07 billion the same period last year.

AB InBev, which also houses the Michelob Ultra and Stella Artois brands, said volumes fell 3.7% organically, extending a stretch of quarterly declines. Analysts had expected volumes to drop 3.1%, according to consensus estimates provided by the company.

It attributed the continued fall in volumes to a poor performance in China, where volumes fell 11%, and unfavorable weather in Brazil. It also cited a dynamic consumer environment. Some analysts had said the third quarter could mark a reversal from recent volume declines.

In North America, organic volumes declined 2.7%. AB InBev said premiumization efforts in the U.S. and measures to boost efficiency allowed it to increase underlying earnings in the country slightly.

The company backed guidance for the year for normalized earnings before interest, taxes, depreciation and amortization—which strips out exceptional items—growth in line with its midterm target of 4%-8%.

For the third quarter, the metric rose 3.3%.

Peers of the beer company have been wrestling with declining sales volumes, as consumers change their tastes and continue to tighten their belts while the alcohol industry comes under heavier regulatory scrutiny.

Dutch brewer Heineken recently slashed its beer volume outlook for the year and narrowed earnings expectations, citing trade uncertainty and weak consumer sentiment. Other competitors like Constellation Brands—the U.S. importer of Modelo and Corona—and Molson Coors have noted tough conditions facing the industry. Constellation cut its outlook, and Molson said it was reducing its Americas workforce, citing a challenging market.