AB InBev Sees Steady Growth As Consumers Venture Out

Anheuser-Busch InBev forecast on Thursday its profit would increase this year as consumers have more opportunities to drink outside of their homes after ending 2021 with stronger results than expected due to higher prices.

The world's largest brewer that makes Budweiser, Corona and Stella Artois said earnings before interest, tax, depreciation and amortisation (EBITDA) would rise by between 4% and 8% this year, in line with its medium-term growth target.

The Belgium-based brewer, with a large presence in the Americas, said this would be based on both higher volumes and prices, noting the forecast reflected its current view of the COVID-19 pandemic.

Unlike rivals Heineken and Carlsberg, which warned spiralling price hikes could curb beer consumption, AB InBev's outlook did not mention global inflation or increased input costs.

Chief Executive Michel Doukeris told Reuters that inflation would definitely have an impact on consumers, but was not the only factor for 2022.

"There is a balance to that, which is occasions that were not part of last year that will be back in play this year," he said.

Doukeris gave the example of Chinese New Year, which was a much more normal celebration in 2022, and the reopening of venues and events in Europe.

In the United States, the company's biggest market, easing of restrictions meant 35% more beer was sold in bars and restaurants in the week of Super Bowl than in 2021, exceeding by 6% the pre-pandemic levels.

AB InBev shares gained shortly after trading opened, but were down 3.6% at 1130 GMT, in line with a general market sell-off triggeed by Russia's invasion of Ukraine, neither of which are significant markets for the company.

The group reported a 5% like-for-like increase in fourth-quarter EBITDA to $4.88 billion, above the 4% average forecast in a company-compiled poll.

The brewer sold more beer in 2021, but the major gain was from price hikes and a consumer shift towards its higher-priced "premium" brands, whose revenues grew by more than 20%. EBITDA for the year was up 11.8%, at the top end of the company's previous outlook of 10-12%.