AB InBev Tops Forecasts With 7.9% EBITDA Growth
Anheuser-Busch InBev reported robust first-quarter 2025 results Thursday, with EBITDA growing 7.9% to reach the upper end of its guidance range despite a 2.2% volume decline. The world’s largest brewer saw its underlying earnings per share increase by 7.1% in dollar terms and an impressive 20.2% in constant currency, demonstrating strong operational performance amid challenging market conditions, according to Yahoo Finance.
The company’s shares rose following the announcement as investors responded positively to margin expansion across four of its five operating regions and continued momentum in premium categories. Despite volume challenges attributed to calendar effects and adverse weather conditions, AB InBev maintained its full-year outlook, projecting EBITDA growth of 4-8% for 2025.
Revenue Growth Despite Volume Challenges
AB InBev’s overall revenue increased by 1.5% in the first quarter, driven primarily by a 3.7% increase in revenue per hectoliter. This growth came despite volume headwinds, with the company’s total volume declining by 2.2% compared to the same period last year, according to Investing.com.
The company attributed the volume decline to several temporary factors, including adverse weather conditions in key markets and the later timing of Easter in 2025 compared to 2024. “Beer remains as a category resilient, and the underlying demand for our brands is very positive,” noted CEO Michel Doukeris during the earnings call, emphasizing that the company expects volume performance to improve in the second quarter as seasonal factors normalize.
Non-Alcoholic Portfolio Surges Globally
One of the most impressive highlights from AB InBev’s quarterly results was the performance of its non-alcoholic beer portfolio, which saw revenues increase by 34% globally. This growth was led by Corona Cero, which achieved triple-digit growth as consumers increasingly seek beer alternatives that align with health-conscious lifestyles, according to Yahoo Finance.
The company’s focus on “balanced choices” has become a central pillar of its growth strategy, with its portfolio of non-alcoholic, low-carb, and gluten-free options now representing over $5 billion in value and growing at high single digits in net revenue. “We are offering a proposition that caters for every different taste and moment,” Doukeris explained, highlighting how the company’s diverse portfolio captures consumption occasions beyond traditional beer drinking.
Digital Transformation Accelerates
AB InBev’s digital transformation continues to yield impressive results, with its B2B platform BEES capturing $11.6 billion in gross merchandise value (GMV) during the quarter, representing a 10% increase compared to the same period last year. The platform processed 32 million orders during the quarter, demonstrating its growing penetration among retail partners.
The BEES marketplace, which connects retailers with third-party vendors, saw particularly strong momentum with GMV increasing by 53% year-over-year to reach $645 million. On the direct-to-consumer front, AB InBev’s digital platforms generated $117 million in revenue during the quarter, an increase of 12% year-over-year, processing 19.2 million orders.
Geographic Performance and Outlook
AB InBev achieved double-digit bottom-line growth in Middle Americas, South America, Africa, and Europe, driven by premiumization trends and margin recovery. However, the company faced challenges in China, where it underperformed due to softness in key regions and the on-trade channel. In the United States, despite industry-wide challenges, AB InBev gained volume market share in both the beer industry and the spirits-based ready-to-drink category.
Despite the volume challenges experienced in the first quarter, AB InBev maintained its full-year guidance of 4-8% EBITDA growth for 2025. Management highlighted several growth drivers for the remainder of the year, including continued premiumization, expansion of its “balanced choices” portfolio, and activation of global platforms such as the NBA, FIFA, and the upcoming Olympics.
