Anheuser-Busch InBev’s profit was boosted as consumers kept buying more expensive beers, which mitigated the impact of soaring expenses.
First-quarter earnings before interest and other items rose 7.4% on an adjusted basis, the company said Thursday. Analysts expected a 3.9% gain.
Heineken NV and Carlsberg A/S have also delivered sales growth ahead of analyst estimates, largely driven by price increases. So far, drinkers returning to bars in the US and Europe after lockdowns have been undeterred by having to pay more for their beers, as the higher prices aren’t yet having a meaningful impact on volume. Brewers depend on their appetite for pricier beer, as aluminum futures have set records in recent months, while barley and transport costs have soared.
Revenue rose 11%, AB InBev said. Sales of Michelob Ultra low-calorie beer rose more than 10% in the US, and the brewer said it’s expanding faster than its rivals in the ready-to-drink spirits segment there with products like Cutwater canned cocktails and Nutrl vodka seltzer.
Sales in China declined 1.2% due to Covid-19 lockdowns.
The company maintained its forecast for full-year growth in adjusted earnings before interest, taxes, depreciation and amortization of 4% to 8%. Analysts expect 5.9%. AB InBev expects even faster sales growth.
Leuven, Belgium-based AB InBev said last month that it expected a $1.1-billion hit from selling its stake in a Russian joint venture.
Heineken and Carlsberg, Russia’s largest brewer through its ownership of Baltika Breweries, are also seeking to exit their businesses there following the invasion of Ukraine.