Latest news with #MichelDoukeris
Yahoo
13-05-2025
- Business
- Yahoo
Anheuser-Busch invests $300M in US manufacturing amid beer optimism
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Anheuser-Busch announced it will spend $300 million on boosting manufacturing jobs at its U.S. facilities in 2025 through technology advancements and worker training programs. The investment builds on $2 billion that Anheuser-Busch spent over the past five years to enhance its U.S. operations. The latest $300 million will go toward technical training programs to upskill the workforce. The announcement comes as the company gained volume share in the struggling beer category in its most recent quarter, including for brands like Michelob Ultra and Busch Light. Anheuser-Busch is also seeing strengthening momentum for RTD canned cocktails including its Nütrl and Cutwater brands, according to the company's earnings report last week. Despite warning signs about the state of U.S. beer consumption, Anheuser-Busch is investing heavily in its manufacturing capabilities to fuel growth in the coming years. On the company's quarterly earnings call last week, CEO Michel Doukeris told investors that consumers remain cautious amid economic uncertainty, but underscored the company's faith in the beer category. 'What we see is that beer is more resilient than some other categories. And of course, it's an everyday affordable category,' Doukeris said. 'Our brands grew and grew the equivalent of 6 million consumers within the last quarter.' Anheuser-Busch's earnings report painted a mixed picture with a 6.4% decline in volumes in the first quarter of this year, which the company attributed to bad weather in the winter months. The brewer's revenues in North America declined 4.7% in the quarter. Industry-wide beer volumes declined 6% in February, Anheuser-Busch said, citing Circana data. Despite the dip, which took place amid a larger decline in consumer alcohol consumption, Anheuser-Busch remains confident that it can grow beer sales, particularly among adults nearing their 30s, including younger millennials and older Gen-Zers. When asked about declining sales of beer among younger consumers, Doukeris noted the 'COVID generation' is evolving at a different pace than previous cohorts did when they reached drinking age. He said people that are now 24 and 25 years old are catching up on the behaviors they missed out on, like going to musical festivals and sporting events. 'Participation is stronger in the older cohorts because people are … going out more often, spending more money,' Doukeris said. While the brewer works to regain market share in the traditional alcohol segment, it's seeing substantial growth among its nonalcoholic offerings. Revenue of nonalcoholic beer grew 34% in the first quarter of 2025, with Doukeris pointing to strong sales of Michelob Ultra Zero in the U.S. since its launch last fall. The CEO said the company is focused on expanding products viewed as healthier — including zero sugar, low-carb and nonalcoholic drinks — in order to make its beverages resonate more widely. Anheuser-Busch is emphasizing its U.S. production as the Trump administration institutes wide-ranging tariffs in an effort to push companies to reshore domestic manufacturing. On the earnings call, Doukeris told investors the company will see minimal exposure to tariffs, due to 99% of its volumes being locally produced. The beer giant has looked to play up its U.S. roots, particularly after a boycott of Bud Light among conservatives caused sales to tank. In 2024, Anheuser-Busch debuted bottles and cans with 'U.S. Farmed' labels for brands like Busch Light. Recommended Reading Anheuser-Busch invests $16M in facility to boost drinks 'beyond beer' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
09-05-2025
- Business
- Time of India
Brewer AB InBev's Q1 profit surges ahead of forecasts
HighlightsAnheuser-Busch InBev reported a 7.9 percent rise in first-quarter operating profit, significantly surpassing analysts' expectations of a 3.1 percent increase. The company experienced a 5.1 percent year-on-year drop in U.S. revenues due to fewer selling days, a late Easter, and adverse weather conditions. Anheuser-Busch InBev's performance in China was weak, with volumes dropping 9.2 percent, prompting the company to increase investments in key brands like Budweiser. Anheuser-Busch InBev reported a 7.9 per cent rise in first-quarter operating profit on Thursday, beating analysts' estimate by more than double, as the beer brewer grew its margin despite a fall in sales volumes. Analysts had expected the world's top brewer to report a 3.1 per cent rise in organic operating profit in the three months ended March 31. The brewer behind Corona and Stella Artois has cheered investors with its performance in recent quarters. But U.S. President Donald Trump's tariffs now pose a threat to consumer sentiment in one of its most important markets, the United States. AB InBev saw a 5.1 per cent year-on-year drop in U.S. revenues in the reported period and attributed the decline to fewer selling days, a late Easter and bad weather. The company sold 2.2 per cent less beer globally in the quarter, a decline that was less severe than feared. Industry peers, such as Heineken, also reported lower sales volumes. Reduced sales costs and effective overhead management boosted margin expansion, AB InBev said. "The consistent execution of our strategy by our teams and partners drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025," CEO Michel Doukeris said. AB InBev's statement notably didn't mention the potential impact of the sweeping U.S. tariffs, unlike peers like Heineken and Carlsberg, which warned that levies could dent consumer sentiment. The company is at risk of a direct hit from tariffs on aluminium, which it uses to make beer cans. Industry sales may also suffer if levies hurt the economy and curb consumer spending on beer. The brewer has faced headwinds in China, where its portfolio of high-end brands struggled in a sluggish economy, causing AB InBev to trail its peers. The company reported a weak first quarter in China, with volumes dropping 9.2 per cent. The brewer said it was boosting investments in key brands like Budweiser and ramping up efforts to grow at-home consumption as spending elsewhere, like in bars, comes under pressure.
Yahoo
09-05-2025
- Business
- Yahoo
AB InBev focusing on off-trade to bolster China growth
Anheuser-Busch InBev is stepping up its efforts in the off-trade channel in China in a bid to improve its performance in the market. Speaking to analysts following the release of the group's first-quarter results, AB InBev CEO Michel Doukeris said there was 'more to do' in China, where the group's revenues fell more than 12% in the opening three months of the year. 'We are accelerating the expansion in the off-trade,' he said. 'Massive opportunity there. As we focus more on our execution on the off-premise, we're going to get better results.' Doukeris said AB InBev was seeing a 'weaker on-trade' and 'good off-trade' in China, adding 'the more you cycle the on-trade, the more [it] is going to be a less negative impact'. In its first quarter, AB InBev's revenue in China declined 12.7% on the back of a 9.2% decline in volumes. EBITDA dropped 15.2%. As part of its strategy, Doukeris said AB InBev would be looking to make 'some tweaks' around 'the sales force, our route to market' for its brands in China, which include Budweiser, Corona and Harbin Ice. Doukeris noted the growth of the off-trade channel was something the company had witnessed in 'all markets', with consumers leaning more towards at-home consumption 'as the markets mature'. He stressed AB InBev 'will continue to have a very good business in the on-trade' in China, adding 'we will rebound over time'. In February, the chief executive said AB InBev was injecting cash into 'portfolio innovation and geographic expansion' in China, with spending focused on the business's "mega brands'. Commenting on China's beer industry yesterday (8 May), the AB InBev CEO told analysts it 'has been improving sequentially', adding the company expected to see a 'normalising of the industry' by the 'summer, back end of the year'. AB InBev's total first-quarter revenue grew 1.5% to $13.6bn. Gross profit was also up 5.2% to$7.6bn. Total volumes declined 2.2% to 136 million hectolitres. The brewing heavyweight reported sales declines in North America in the quarter. Volumes dropped organically to 6.4% to 19.8 million hectolitres, while revenue was down 4.7% to $3.4bn. Within the region, the Stella Artois owner saw revenue decrease 5.1% in the US. EBITDA dropped 1.7%. Sales to retailers in the US were also down 5.4% in the period, as the industry was hit "by adverse weather and Easter shipment phasing", AB InBev said. Sales to wholesalers dropped 6.7%. "AB InBev focusing on off-trade to bolster China growth" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Anheuser-Busch InBev Profit Jumps as Beermaker Cuts Costs
Anheuser-Busch InBev's profit almost doubled as the beer giant reduced costs. Selling, general, and administrative expenses fell nearly 6%. The company's first quarter revenue missed forecasts as volumes decreased.U.S.-listed shares of Anheuser-Busch InBev (BUD) gained Thursday as the world's biggest beer brewer easily beat earnings estimates as lower costs offset falling volumes. The maker of brands including Budweiser and Michelob reported first-quarter net profit of $2.15 billion, nearly double what it was a year ago. Analysts surveyed by Visible Alpha were looking for $1.66 billion. Revenue rose 1.5% year-over-year to $13.63 billion, short of forecasts. AB InBev's selling, general, and administrative expenses (SG&A) decreased nearly 6% to $4.19 billion. The company pointed to disciplined resource allocation, overhead management, and optimization of capital expenditures for the decline. Beer sales declined in the U.S., Europe, and China, but they gained in Latin America and South Africa. Total beer and non-beer volume dipped 2.2%, which the company blamed on "calendar-related factors such as cycling the leap year selling-day benefit in 1Q24 and Easter shipment phasing." CEO Michel Doukeris said that the consistent execution of AB InBev's strategy "drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025." Following the report, U.S.-listed shares of AB InBev rose about 2.5% to trade at their 2025 high. Read the original article on Investopedia Sign in to access your portfolio
CNA
08-05-2025
- Business
- CNA
Brewer AB InBev's Q1 profit surges ahead of forecasts
LONDON :Anheuser-Busch InBev reported a 7.9 per cent rise in first-quarter operating profit on Thursday, beating analysts' estimate by more than double, as the beer brewer grew its margin despite a fall in sales volumes. Analysts had expected the world's top brewer to report a 3.1 per cent rise in organic operating profit in the three months ended March 31. The brewer behind Corona and Stella Artois has cheered investors with its performance in recent quarters. But U.S. President Donald Trump's tariffs now pose a threat to consumer sentiment in one of its most important markets, the United States. AB InBev saw a 5.1 per cent year-on-year drop in U.S. revenues in the reported period and attributed the decline to fewer selling days, a late Easter and bad weather. The company sold 2.2 per cent less beer globally in the quarter, a decline that was less severe than feared. Industry peers, such as Heineken, also reported lower sales volumes. Reduced sales costs and effective overhead management boosted margin expansion, AB InBev said. "The consistent execution of our strategy by our teams and partners drove a solid start to the year and reinforces our confidence in delivering on our outlook for 2025," CEO Michel Doukeris said.
