LONDON (Reuters) -Beer giant Anheuser-Busch InBev beat second-quarter profit estimates on Thursday even as beer volumes slipped, dragged back by weak sales in China and Brazil.
The world’s top brewer by volumes said its organic operating profit in the three months to end-June rose 6.5%, ahead of analyst expectations of a 5.7% rise, thanks to revenue growth and cost management that expanded margins.
AB InBev said its performance showed the resilience of its strategy in what CEO Michel Doukeris described in the statement as a “dynamic” operating environment.
The maker of Corona and Stella Artois has outperformed on profits, cheering investors, and grown revenues by getting drinkers to pay more for its beers. But it and other top brewers have struggled to get volumes growing.
Rivals say that U.S. tariff threats have dented beer sales both in the U.S. and elsewhere in the Americas – key regions for AB InBev.
But the brewer did not mention trade tensions in its statement, putting soft industry sales in markets like Mexico, where Heineken flagged consumer caution due to tariffs, down to poor weather.
Its volumes overall fell 1.9% organically in the second quarter, worse than expectations for a 0.3% decline. Heineken warned its volumes could be softer for the remainder of the year.
AB InBev said bad weather also hurt beer sales in Brazil, where it underperformed the wider industry.
In China, where AB InBev has been struggling to keep pace with fast growth enjoyed by rivals like Heineken, it saw a 7.4% decline in volumes.
Sales of the company’s portfolio of pricier beers have suffered in the world’s largest beer market, where a sluggish economy has dented confidence.
(Reporting by Emma Rumney; Editing by Jacqueline Wong and Mrigank Dhaniwala)
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