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Investing.com -- Anheuser-Busch InBev (EBR:ABI) on Thursday posted Q1 earnings that beat expectations, lifted by strong results in South America and lower finance costs, while North America and China underperformed.
The world’s largest brewer reported first-quarter revenue of $14.55 billion, up 2.6% organically from a year earlier, ahead of the company-compiled consensus of $14.36 billion. EBITDA grew 5.4% organically to $5.02 billion, compared with $4.91 billion expected.
EPS of 0.85 euros beat estimates by 11%, largely due to lower finance costs, according to analysts.
The company said its performance reflected the resilience of its global footprint, with strength in South America more than offsetting softer results in Asia-Pacific and North America. Revenue per hectoliter rose 5.3% organically, while volumes fell 2.6%.
In Brazil, revenue grew 8.9% organically, with both volumes and price/mix contributing.
Premium and super-premium brands led growth. In South America North, revenue rose 24.5% organically on double-digit volume growth, while EBITDA jumped 35.3%.
North America revenue declined 2.7% organically, as volumes fell 9.1%. However, ABI gained share in the U.S. beer market, which faced weather and calendar pressures. Michelob Ultra and Busch Light were the top volume share gainers, the company said.
In China, volumes declined 9.2%, with approximately a quarter of that attributed to inventory phasing, the company said. ABI underperformed the broader market in what it called a challenging industry context.
The company reiterated its full-year guidance of 4% to 8% organic EBITDA growth, in line with its medium-term outlook. Consensus expectations are at 6.1%.