AB InBev’s Q2 revenues were boosted by the growth of its global beer brands, influenced by the company’s position as the global beer sponsor of the 2018 FIFA World Cup, which offset a sales decline in the US.
The company’s overall net revenue fell 1.4% to $14 billion, but pre-tax earnings grew 4% to $5.6 billion, which the company attributed to the growth of its premium brands in Brazil, Mexico, China and Western Europe.
Corona’s revenues grew 21.9% globally and 42.6% outside of Mexico, Budweiser’s revenues rose 4.1% globally and 10.1% outside of the US, while Stella Artois revenues grew 9.0%, with strong performances in Brazil, the UK, and Argentina.
In Africa excluding South Africa, our own beer volumes grew by high single digits, with double-digit growth in the key markets of Nigeria, Zambia, and Mozambique partially offset by declines in Tanzania and Uganda, as both suffered from heavy floods.
The growth in global sales offset a sales decline in the US, the company’s largest market. Revenue in the region fell 3.1% as consumers moved away from its Budweiser and Bud Light brands in favor of craft beer.
However, revenues grew significantly throughout Latin America, as the company’s Latin America South, North and West segments reported revenue growth of 25.5%, 10.2%, and 9.1% respectively.
A statement from AB InBev said: “We continue to expect our growth to accelerate in the second half of this year as we scale up learnings
from the category expansion framework and continue to share best practices across our markets.
“Furthermore, our portfolio of global and high-end brands positions us well to drive category growth across our diverse geographic footprint in a sustainable way.”