A-B InBev revenue finally stabilizing 19 months after Bud Light controversy

Anheuser-Busch InBev may have turned a corner more than a year after its sales tanked from a boycott sparked by the brewer tapping transgender influencer Dylan Mulvaney for a Bud Light marketing campaign in spring 2023.

The Belgium-based brewer on Thursday posted revenues of $15.57 billion, up from $15.04 billion in the same quarter last year and credited stabilization in the U.S. market.

“Our business in the U.S. is regaining momentum and we are continuing to invest to fuel the growth,” A-B InBev CEO Michel Doukeris said on a call with investors Thursday. He said that the beer sector improved in both volume and revenue and that Michelob ULTRA and Busch Light were top share gainers in the industry.

North America volume was down 0.4% for the third quarter.

The company also raised its full year expectations to between 6% to 8%, from the previous 4% to 8%.

However, overall volume was down over 2% for the quarter due to a soft consumer environment in China, where consumers are frequenting bars and restaurants less. The country saw a decline in revenue of 16%. Doukeris said he doesn’t see improvement there in the short-term.

Company leaders also announced a $2 billion share buyback program that will be carried out over the next 12 months. A-B InBev completed a $1 billion share buyback program earlier this year.

“I think it speaks to the added flexibility and it speaks to the confidence in our ability to concentrate strong cash flows in our business,” Doukeris said.

Also on the upswing is A-B InBev’s non-alcohol portfolio. The company reported a revenue growth in the mid-30s percent this quarter. Doukeris said the Olympic Games, with Corona Cero as its global beer sponsor, helped grow the company’s platform. He also cited Michelob ULTRA Zero, which will be available on U.S. shelves starting in 2025.