Anheuser-Busch Inbev (Bud) stock is under pressure as the company missed Wall Street's estimates of revenue and volume growth, which has raised concerns about the industry as a whole.
The stock fell more than 11%, opposite to the expected 0.05% growth on Wall Street. Revenue was $15 billion, lower than Wall Street's forecast of $15.35 billion.
China's weak numbers (down 7.4%) and Brazil (down 6.5%) delayed quarterly results.
AB INBEV CEO Michel Doukeris told Yahoo Finance that the business has an oversized share of bars and restaurants in China rather than at home consumption and the eastern part of the country, making it “underperform.”
Brazil has bad weather and value-seeking consumers, but he says he still has confidence in “industry performance” [there] In the long run. ”
In the U.S., he said, consumers are “choosing” because the industry has generally experienced softness. Sales to retailers fell 2.1% in the quarter.
Doukeris said its Busch Light brand is growing as consumers, especially those in the low-income cohort, seeking value options after years of inflationary pressure.
The company also responds to consumer concerns about health and wellness with low-calorie brands such as Michelob Ultra and consumers’ transfer from alcohol. Doukeris believes that global portfolios still have a good attitude to meet this demand, with brands such as Corona Cero and Cass in South Korea.
“The idea is that low-calorie, low-carb, low-alcohol, alcohol-free, gluten-free, sugar-free is an ever-growing innovation for consumers to continue to be social and enjoy their moments, but more control over their entire consumption,” Ducres said.
Thursday's trading session marked the lowest share price of AB INBEV since the bear market of the COVID-19 pandemic on March 16, 2020. MolsonCoors (TAP) and Constellation Brands (STZ) stocks are also under pressure.