Anheuser-Busch InBev Delivers Mixed Q1 Results Despite Profit Surge

Anheuser-Busch InBev's Q1 profit rose significantly, but revenue and EBITDA fell. Earnings per share showed improvement, but volume declines raise concerns. Investors should note these mixed signals as they evaluate stock performance.

Date: 08-05-2025

AI Rating: 6

Profitability Analysis: Anheuser-Busch InBev reported a dramatic increase in profit attributable to equity holders, rising from $1.09 billion to $2.15 billion. This positive development may bolster investor confidence in the stock, provided it does not solely depend on non-underlying items. Basic Earnings Per Share (EPS) increased to $1.08 from $0.54, showcasing a strong recovery in earnings on a per-share basis.

Revenue Performance: Despite the profit surge, revenue for the quarter dropped by 6.3%, signaling potential concerns about the company’s market performance and consumer demand. The notable revenue decrease from $14.55 billion to $13.63 billion could lead investors to be cautious regarding the company’s growth outlook. However, the company did report organic revenue growth of 1.5%, indicating some resilience amidst a tough market backdrop.

EBITDA Insights: The Normalized EBITDA, although declining from $4.99 billion to $4.86 billion year-over-year, along with a reduction in Normalized EBIT (from $3.64 billion to $3.59 billion), reflects a challenging operating environment. Yet, the EBITDA margin did improve from 34.3% to 35.6%, which is a positive sign as it indicates better operational efficiency despite the revenue decline.

Volume Challenges: Notably, the company experienced a 2.2% decline in organic volumes, attributed primarily to calendar-reated factors and last year's leap year effect. This volume contraction is a critical point of concern as it could imply weakening demand for their products, particularly in a competitive market landscape.

Outlook: The company's forecast for EBITDA growth in the range of 4-8% in fiscal 2025 suggests a cautious yet optimistic view on their future performance. Investors should carefully monitor the execution of this guidance and its implications for stock performance.

Stocks: BUD