Anheuser-Busch InBev NV kept its annual profit forecast as third-quarter adjusted earnings met analysts’ expectations, even as US sales struggled following a Bud Light marketing controversy and global volumes fell.
Adjusted earnings rose 4.1% to $5.4 billion, the Leuven, Belgium-based company said in a statement, matching analyst estimates. The maker of Budweiser and Stella Artois posted global sales of $15.6 billion, slightly below the $15.8 billion expected by analysts.
The company has sought to move on after its work with Dylan Mulvaney, a transgender influencer who did a sponsored Instagram post for Bud Light in April, led to a backlash among political conservatives in the US. AB InBev subsequently cut ties with Mulvaney, which triggered the ire of her supporters.
The company said US sales dropped 13.5% amid the Bud Light issue, while price hikes there led to revenue per hectoliter rising by 4.9%. Overall, North American sales fell more than expected.
Beer makers have been raising prices to offset soaring input costs. That risks cash-strapped consumers switching to cheaper beer.
Organic volume growth fell by 3.4%, beyond the expectation of a 2.3% decline.
The brewer’s sales in Brazil rose 5.3% during the quarter, with revenue per hectoliter climbing 5.5%.
AB InBev reiterated its forecast for the year, saying earnings will probably rise between 4% and 8%. Analysts are expecting a gain of 5.7%.
(Updates throughout)
