Anheuser-Busch InBev, the world's largest brewing company, which includes brands like Stella Artois and Budweiser, reported a smaller-than-expected volume decline in the first quarter and reaffirmed its annual forecast following an encouraging three-month performance.

The brewery reported on Wednesday a volume decrease of 0.6% compared to the market expectations of 1.0%, which is based on an estimate from 17 brokers published on April 15th. Compared to the previous quarter, the volumes dropped by 2.6%.

In particular in the USA, organic volumes decreased by 9.9%, mainly due to the impact of Bud Light sales to retailers. Since April 2023, sales in the region have been struggling after Dylan Mulvaney, a transgender social media star, posted about a personalized can of Bud Light that the brewer had sent him as a gift. This triggered a boycott that affected the sales of Bud Light and other brands.

Despite this, revenue in the region fell by 9.1%, compared with an expected decline of 12% according to Visible Alpha consensus.

The Net Profit for the Quarter Amounted to $1.09 Billion, Compared to $1.64 Billion in the Previous Year. This Was Below Market Expectations of $1.17 Billion, Based on Estimates by 15 Analysts According to Visible Alpha. The Stronger than Expected Decline Was Driven by Underlying Financial Costs and the Effects of Hyperinflation.

On an adjusted basis, the net profit rose to 1.51 billion dollars from 1.31 billion dollars.

The revenue for the quarter rose to $14.55 billion from $14.21 billion the previous year.

The company recorded an organic sales growth of 2.6%, which is in line with the market consensus compiled by the firm.

The normalized EBITDA increased by 5.4% to $4.99 billion, compared to market expectations of a growth of 1.9%.

AB InBev Expects EBITDA Growth in Line with Long-Term Forecast of Between 4% and 8% for 2024.