AB InBev beer sales fell 1.9% in Q2, deeper than expected, dragging shares down over 9% despite profit growth. Weak demand in China and Brazil drives decline
AB InBev beer sales took an unexpected hit in the second quarter of 2025, triggering a sharp drop in the company’s share price—even as revenue and profits exceeded expectations.
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The world’s largest brewer reported a 1.9% year-over-year decline in global beer volumes, well above the 0.3% dip forecasted by analysts.
The steep fall was driven primarily by sluggish demand in China and Brazil, two of its most critical international markets.
In China, sales volumes dropped 7.4%, with AB InBev admitting it lagged behind competitors in the region.
Brazil, which had shown resilience in previous quarters, saw a 6.5% decline due to poor weather and tough comparisons to last year’s bumper performance.
Despite the volume slump, AB InBev grew organic revenue by 3%, reaching *$15 billion.
This growth was fueled by pricing strategies and a partial rebound in U.S. markets.
The company’s operating profit climbed 6.5%, outpacing analysts’ forecasts.
However, the market wasn’t convinced. Shares plunged by as much as 11% in early London trading before narrowing losses to just over 9%—a dramatic reversal for a stock that had gained 19% year-to-date.
“This quarter shows the resilience of the global beer market,” said CEO Michel Doukeris, highlighting continued growth in flagship brands like Corona and Stella Artois.
Still, analysts warned that the unexpected size of the volume slump could overshadow the positive earnings numbers.
Disappointing performance in Asia, Latin America, and parts of Europe and Africa could weigh heavily on short-term investor confidence.
The brewing industry is also contending with rising costs, notably aluminum tariffs of up to 50% on U.S. imports.
While AB InBev said it sources most U.S. cans domestically, shielding it from some cost volatility, global trade tensions remain a concern.
Negotiations between the EU and U.S. may introduce new tariffs, with wine and spirits producers seeking exemptions from proposed 15% levies on European exports.
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Looking ahead, AB InBev must navigate not only economic headwinds and shifting demand patterns but also a changing global trade environment.
Source: Read more at premiumtimesng.com
Peculiar Adirika is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.
