Key Points

• Core profit of $4.76bn, up 13.6% YoY
• Revenues of $14.2bn, boosted by "pricing actions" and premiumization
• Non-alcoholic beer revenues up 30% in Q1

Anheuser-Busch InBev, the owner of Budweiser, on Thursday, announced an increase in first-quarter profit, stating that the beer business had shown resilience despite inflationary pressures.

The largest brewer in the world, with its headquarters in Belgium, posted a core profit of $4.76 billion, up 13.6% from the first quarter of 2022. the improvement over the company's 5.6% consensus expectation. The underlying profit attributable to shareholders increased from $1.2 billion in the same quarter last year to $1.3 billion this quarter.

According to data, revenues increased 13.2% year over year to $14.2 billion, barely beating the projection of $14.1 billion. Volumes increased by 0.9% over the period, which the business attributed to "pricing actions" and "premiumization" of the products. Volumes of own beer increased by 0.4%, and non-beer volumes increased by 3.6%.

Additionally, AB InBev is the owner of the brand's Beck's, Corona, and Stella Artois.

According to the company's earnings release, "the beer industry performance improved in 1Q23, demonstrating resilience even in the context of a continuing inflationary environment."

Non-alcoholic beer sales increased by 30% throughout the period. The company also reported excellent sales growth outside of the United States, its biggest market, driven by the revival of consumer demand in China and ongoing expansion in India.

With its first-quarter results earlier this week, AB InBev's rival Molson Coors told a comparable tale, beating profit projections as consumers continued to purchase the company's goods despite higher prices.  

Following the reporting period, in April, AB InBev's Bud Light brand was the target of online criticism after a brief social media collaboration with a transgender influencer. Online celebrities demanded a boycott of the drink, while some claimed AB InBev did not provide enough support afterward for Dylan Mulvaney, a popular TikTok user.

In a statement made later in the month, the business listed working "with hundreds of influencers across our brands" as one of many strategies for "authentically connecting with audiences across various demographics."

In early Thursday trading, AB InBev shares increased by 0.5%.