AB InBev, the world’s largest beer maker, has outperformed market expectations for profit in the second quarter, despite seeing a decline in sales volumes in key markets like Brazil and China.
The company reported a 6.5% rise in organic operating profit, exceeding analyst forecasts, mainly driven by revenue growth and disciplined cost control. This helped the brewing giant widen its margins, offering some relief to investors in an otherwise challenging operating environment.
However, not everything went smoothly. The brewer, known for brands like Stella Artois and Corona, saw total volumes drop by 1.9% — far worse than the expected 0.3% fall. The decline was largely due to poor weather in Brazil and cautious consumer behaviour in China, where premium beer sales have struggled amid economic uncertainty.
In China, volumes slumped by 7.4%, with AB InBev losing ground to faster-growing competitors. In Brazil, its performance lagged behind the broader beer market, again hampered by bad weather conditions.
While revenue has increased due to higher pricing strategies, the company — like rivals — is grappling with softer beer demand across the Americas, though AB InBev avoided linking this to recent tariff threats that have affected the broader industry.
Despite the headwinds, the company’s strong margin and profit performance suggest it’s holding steady — for now.