For the period January to March, revenue increased 13.2% with revenue per hl growth of 12.4%, compared to the same period in 2022.
Revenue growth came from an increase in product prices, as well as continued premiumization throughout the portfolio - showing consumers appear to be willing to pay more despite cost of living pressures.
Volumes edged up 0.9%; following 0.6% declines in the fourth quarter of 2022.
“We continue to invest for the long-term and these results reinforce our confidence in the resilience of the beer category, the effectiveness of our strategy and the strength of our platform to deliver consistent profitable growth,” said CEO Michel Doukeris as the company released its financials this morning.
US beer industry improves in Q1
Revenues in the US were up 4% with revenue per hl up 5.6%.
“The [US] beer industry performance improved in 1Q23, demonstrating resilience even in the context of an ongoing inflationary environment,” says AB InBev.
“We continue to execute our commercial strategy, with our above core beer and Beyond Beer brands collectively increasing their share of our revenue. Our above core beer portfolio continued to gain share of the segment, growing volumes by low-single digits."
While the the beyond beer segment only accounts for a drop of the company’s overall revenues, the segment has a growing roster of hard seltzers, canned wine, canned cocktails and more (such as Babe wine, Bon Viv hard seltzer, Cutwater Spirits, Nutrl vodka seltzer, Kombrewcha and Ritas RTD cocktails.)
In particular, AB InBev highlights the growth trajectory of spirits-based RTD drinks, which grew double-digits in volume over the latest quarter.
Europe continues premiumization trends
In Europe, revenue grew low-teens: driven by continued premiumization efforts.
In particular, the global brands portfolio (Budweiser, Corona, Stella Artois) and super premium portfolio delivered low-teens revenue growth.
In China, volumes grew 7.4%, outperforming industry according to the company’s estimates, as it notes an improving operating environment in its key regions and sales channels over the latest three months. Revenue per hl increased by 3.3%, driven by premiumization and revenue management initiatives, resulting in revenue growth of 11.0%.
“We delivered volume growth across all segments of our [China] portfolio driven by continued investment behind our commercial strategy,” says the company. “Our performance was led by our premium and super premium brands which grew volumes by approximately 10%.”