By Emma Rumney
LONDON (Reuters) -Anheuser-Busch InBev reported a 7.9% rise in first-quarter operating profit on Thursday, more than double the increase expected by analysts, as the world’s biggest brewer boosted its profit margin despite a fall in sales volumes.
Analysts had expected the beer maker to report a 3.1% rise in organic operating profit in the three months ended March 31. Its shares rose over 4% in early trade.
The maker of 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% year-on-year drop in U.S. revenues in the quarter and attributed the decline to fewer selling days, a late Easter and bad weather.
The company sold 2.2% less beer globally in three months, a decline that was less severe than feared. Industry peers, such as Heineken, have also reported lower sales volumes.
Reduced sales costs and effective overhead management boosted margins, AB InBev said.
“The consistent execution of our strategy by our teams and partners drove a solid start to the year,” CEO Michel Doukeris said.
Analysts also pointed to the company’s strong performance in South American nations, such as Brazil.
“This exemplifies the resilience of (AB InBev’s) geographically diverse footprint,” said RBC Capital analyst James Edwardes Jones.
AB InBev’s statement didn’t mention the potential impact of the sweeping U.S. tariffs, unlike Heineken and Carlsberg, which have warned that levies could dent consumer sentiment.
AB InBev is at risk of a direct hit from tariffs on aluminium, which it uses to make beer cans. The company said 98% of its beer volumes were locally produced.
Industry sales may also suffer if levies hurt the economy and curb consumer spending on beer.
The brewer has faced headwinds in China, where volumes fell 9.2% in the quarter.
It said it was boosting investments in key brands such as Budweiser and ramping up efforts to grow at-home consumption as spending elsewhere, including in bars, comes under pressure.
(Reporting by Emma Rumney. Editing by Sumana Nandy and Mark Potter)
