Anheuser-Busch InBev beat earnings and first-quarter revenue estimates as demand for beer remained resilient despite higher prices. But the Bud Light brewer did not mention the impact of the boycott prompted by its marketing campaign with social media influencer Dylan Mulvaney.
In part, that’s because Mulvaney promoted Bud Light on April 1, the day after the first quarter ended. There was also no sign of controversy in the company’s outlook despite Bud Light sales volume outside the company falling 26% year-over-year in the week ended April 22, according to Beer Business Daily.
But the boycott and related ramifications will likely be the focus of questioning on the conference call scheduled for 9 a.m. ET.
Anheuser-Busch reported first-quarter earnings of 65 cents a share on revenue of $14.2 billion. Analysts expected earnings of 59 cents per share on revenue of $14.1 billion, according to FactSet. This is for three months until the end of March. The company reported earnings of 67 cents per share on revenue of $13.2 billion in the first quarter of 2022.
Mulvaney on April 1 Instagram post During March Madness, it sparked a strong backlash that lasted at least the month of April. commercial publication Bear Business Daily He said Bud Light sales in groceries, grocery and liquor stores fell 21.4% for the week ended April 22, after declining 17% in the previous week. So far this year, sales are down 3%.
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By comparison, Molson Coors Beverage (TAP) Coors Light revenue rose 20.5% in the third week of April, and Miller Lite sales increased 21%.
Written by Harry Schumacher, magazine publisher Bear Business Daily.
Anheuser-Busch did not immediately respond Barron Requests for more information.
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Analysts on a conference call for Coors, which reported earnings on Tuesday, asked differently about the Bud Light boycott and the jump in the rival company’s sales during the month of April. Molson Coors reaffirmed its guidance for 2023, including low single-digit growth in net sales revenue.
“We didn’t factor in any of the trends we saw in April in our guidance,” Molson Coors CEO Gavin Hattersley told analysts. “We really are and I’m sure no one has any idea how long these things are going to last.”
Anheuser-Busch has committed to its distributors to increase its marketing spending on Bud Light, and to accelerate production New adsand giving a Bud Light case to every employee of the Anheuser-Busch wholesaler, the Wall Street Journal reported.
Brussels-based Anheuser-Busch InBev
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It produces more than 500 beer brands worldwide, including Corona, Stella Artois and Michelob Ultra. Its North American market may be the largest, but its $16.6 billion in revenue in 2022 accounted for less than 30% of its $57.8 billion in global sales.
For 2023 as a whole, analysts expect earnings per share of $3.23, on revenue of $62.2 billion. In 2022, the company earned $3.21 per share on revenue of $57.8 billion.
As of Wednesday’s close, shares of BUD are up 6.1% so far this year, and up 9.2% over the past 12 months.
Write to Janet H. Cho at [email protected]
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