Why Budweiser Parent Anheuser-Busch InBev's Stock Is Rising Today?

Anheuser-Busch InBev SA/NV BUD shares are trading higher in premarket on Thursday after the first-quarter FY25 earnings.

The company reported a first-quarter revenue decline of 6.3% year-on-year to $13.63 billion, missing the analyst consensus estimate of $13.78 billion.

On an Organic basis, total volumes declined by 2.2%, with own beer volumes down by 2.5% and non-beer volumes seeing a 0.2% decline. Revenue per hl grew 3.7%.

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Gross profit expanded 5.2% organically to $7.58 billion, and gross margin expanded 203 basis points to 55.6%.

Normalized EBITDA for the quarter grew 7.9% organically to $4.85 billion, with the margin expanding 218 basis points to 35.6%.

The underlying profit for the quarter was $1.606 billion compared to $1.509 billion last year. Underlying EPS of $0.81 beat the consensus estimate of $0.74.

“Beer is a passion point for consumers. The strength of the beer category and the continued momentum of our megabrands delivered another quarter of profitable growth," said CEO Michel Doukeris.

Outlook: Anheuser-Busch InBev expects its FY24 EBITDA to grow in line with its medium-term outlook of 4%- 8%. FY25 capital expenditures are anticipated to be $3.5 billion—$4 billion.

Price Action: BUD shares traded higher by 1.8% at $66.70 in premarket at last check Thursday.

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