Budweiser Parent Anheuser-Busch InBev's Revenue Management Initiatives Pays Off In Q3, Revenue Per Hl Surge 9.0%

Anheuser-Busch InBev SA/NV BUD reported third-quarter FY23 sales growth of 5% year-on-year to $15.57 billion, missing the analyst consensus estimate of $15.73 billion.

Total volumes declined by 3.4%, with own beer volumes down by 4% and non-beer volumes up by 1.4%. Revenue per hl grew 9%.

The company had about 66% of revenue through B2B digital platforms and over $125 million revenue was generated by the digital direct-to-consumer ecosystem.

Gross profit expanded 4.1% organically to $8.4 billion, and gross margin contracted 44 basis points to 53.9%.

Normalized EBITDA for the quarter grew 4.1% to $5.43 billion, with the margin contracting 29 basis points to 34.9%.

Underlying profit for the quarter was $1.735 billion compared to $1.682 billion last year.

Underlying EPS of $0.86 beat the analyst consensus estimate of $0.83.

Outlook: Anheuser-Busch InBev expects its FY23 EBITDA to grow in line with its medium-term outlook of 4%-8% and revenue to grow ahead of EBITDA from a healthy combination of volume and price. It expects FY23 capital expenditure of $4.5 billion - $5 billion.

Price Action: BUD shares are trading higher by 4.09% at $56.24 in premarket on the last check Tuesday.