Budweiser Parent Anheuser-Busch InBev Reports 7% Organic Revenue Growth In Q2

Anheuser-Busch InBev SA/NV BUD reported second-quarter FY23 sales growth of 7.2% organic year-on-year to $15.12 billion, missing the analyst consensus of $15.37 billion.

Total volumes declined by 1.4%, with own beer volumes down by 1.8% and non-beer volumes up by 0.5%. Revenue per hl grew 9%.

The company had about 64% of revenue through B2B digital platforms and over $115 million revenue was generated by the digital direct-to-consumer ecosystem.

Gross profit expanded 5.5% organically to $8.1 billion, and gross margin contracted 86 basis points to 53.6%.

Normalized EBITDA for the quarter grew 5% organically to $4.90 billion, with the margin contracting 69 basis points to 32.5%.

Underlying profit for the quarter was $1.45 billion compared to $1.46 billion last year.

Underlying EPS of $0.72 beat the analyst consensus of $0.68.

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 3.65% at $58.28 in premarket on the last check Thursday.