Anheuser-Busch Inbev, a Belgian drinks company, recently announced their quarterly revenue results. The company’s revenue grew by 2.6% in the first three months of the year, which was in line with analysts’ predictions. However, despite this growth, the results are considered historically low due to the aftermath of a customer boycott that affected the company last year.
The backlash began when AB InBev collaborated with transgender influencer Dylan Mulvaney and sent her a personalized Bud Light can to celebrate her transition. This move sparked controversy, with right-wing commentators criticizing the brand for pushing a liberal agenda and left-wing voices faulting the company for not adequately supporting Mulvaney. In response to the backlash, AB InBev’s Europe CEO, Jason Warner, stated that the company would “stay in our lane” moving forward.
Despite this setback, commentators believe that the effects of the boycott will begin to fade as sales volume declined by 0.6%, but was boosted by sales of products like spirits-based drinks in cans. Despite a 11.1% drop in sales of the company’s beer brands in North America, largely attributed to Bud Light’s performance, optimism about full-year EBITDA growth is expressed by Michel Doukeris, Chief Executive of AB InBev who cited global footprint and momentum of their mega brands as driving factors for this growth projection.
Stronger growth was observed in regions like Mexico, Brazil and South Africa where AB InBev reported a 5.4% increase in Normalised EBITDA to nearly $5 billion indicating positive financial performance. While there were lackluster improvements in Asia Pacific region and North America
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