Anheuser-Busch InBev (A-B) reported a +12.1% increase in revenue, to $15.091 billion, and +3.7% volume growth in the third quarter of 2022, compared to the same period last year, the company shared today in its earnings report.
“We continue to see strong consumer demand for our portfolio and a resilient beer category as we navigate the dynamic operating environment,” CEO Michel Doukeris said in a press release. “As a result of our performance and continued momentum, we are raising the bottom-end of our FY22 EBITDA outlook.”
EBITDA (earnings before interest, taxes, depreciation and amortization) increased +6.5%, to $5.313 billion in Q3, and +7%, to $14.896 billion for the first nine months of 2022.
A-B credited its global success in Q3 to its commitment to “invest in three key strategic pillars to deliver consistent growth and long-term value creation,” which include leading and growing the beer category, digitizing and monetizing its ecosystem, and optimizing the business.
Through the first nine months of 2022, A-B’s revenue increased +11.5%, to $41.118 billion and revenue per hectoliter increased +7.8%.
Revenues of the company’s global brands – Budweiser, Stella Artois, and Corona, which A-B produces and sells outside the U.S. – increased 12.7% outside their home markets in Q3, and +9.6% in the first nine months of 2022.
US Revenue Up, Volume Down
In the U.S., A-B’s revenue increased +1.9% and revenue per hectoliter increased +3.8% in the quarter, while shipments (sales to wholesalers) declined -1.8% and depletions (sales to retailers) declined -1.7%. A-B estimated these declines to be “below the industry,” as its September shipment volumes got a boost from wholesalers placing orders ahead of the company’s October price increase.
For the first nine months of 2022, the company’s top line grew +2.2%, and revenue per hectoliter increased +5.1%. Year-to-date shipments declined -2.7%, and depletions declined +-.1%.
“The beer industry remains resilient even in the context of an ongoing inflationary environment,” the company wrote. “We continue to progress on our commercial strategy to rebalance our portfolio.”
Asked how the company is handling inflation and economic uncertainty during a call with investors and analysts, Doukeris said A-B “must focus on what we can control.”
“What we can control, what we see, is business momentum,” he said. “This business momentum has to do with the execution of our strategy and everything that we’ve been discussing over the last quarters and our meetings.”
A-B’s above-core and beyond beer offerings account for 40% of the company’s revenue in the U.S. as it works to premiumize its business, led by Michelob Ultra which “grew by double-digits” and was “complemented by growth in Stella Artois, Kona Big Wave and Estrella Jalisco.”
At multioutlet grocery and convenience stores tracked by market research firm IRI, Michelob Ultra’s dollar sales increased +9.6%, to $819.1 million in the 12 weeks that ended October 2. Stella Artois’ dollar sales declined -2.5%, to $92.3 million in the same period, but IRI data does not include on-premise business. Kona Big Wave’s dollar sales increased +2.8%, to $12.1 million.
Cutwater Spirits, A-B’s spirits-based ready-to-drink canned cocktail brand family, “continued to outperform the industry” and was the best-selling spirits-based cocktail during the quarter. NÜTRL, the vodka-based seltzer brand family A-B acquired in 2020 and introduced nationwide this year, “grew strong double-digits,” the company said. Since its launch, NÜTRL has become the second best selling spirits-based seltzer, behind E. & J. Gallo’s High Noon Sun Sips, according to A-B.
Spirits-based offerings have accounted for about $150 million in sales for A-B in the U.S., Doukeris said, and the company’s brands in the segment are “growing ahead of the industry, high double digits.”
Cutwater’s off-premise dollar sales increased +36%, to $1.89 million, for the week ending October 16, according to IRI. Dollar sales of the overall RTD segment – in which IRI includes wine- and malt-based hard seltzers – increased +6.4%, to $166.3 million, in the same period. Spirits-based seltzers’ dollar sales increased +81.4%, to $6.75 million, led by segment leader High Noon, which increased dollar sales +81.7%, to $4.8 million for the week.
E-Commerce B2B Platform BEES Continues to Grow
BEES, A-B’s global B2B e-commerce platform, now accounts for about 57% of the company’s revenue. It continues to gain monthly active users (3.1 million in September 2022, compared to 2.1 million in September 2021) and increase its gross merchandise value ($7.7 billion in Q3 2022, compared to $5.5 billion in Q3 2021).
BEES users spend an average of 28 minutes per week on the platform, up from 25 minutes in September 2021. The platform handles an estimated 1.8 million orders each week.
A-B’s direct-to-consumer platforms processed 17 million e-commerce orders, generating more than $385 million in revenue in Q3.