Corona and Stella Artois giant AB InBev has toasted record annual sales despite ongoing trading troubles in China. The Belgium-based group – the world’s biggest brewer – said revenues rose 0.7% to an all-time high of 59.77 billion US dollars (£47.27 billion) in 2024.
This was notched up despite a double-digit revenue plunge in China, where sales by volume tumbled 19% in the final three months of the year. It said around a third of drop was down to stock management issues, while demand in pubs and bars was also weak.
Underlying earnings in China fell 11.9% over the year as a whole. It overcame the hit in China thanks to solid sales of more expensive premium labels such as Corona and Michelob Ultra. No- and low-alcohol brands also performed well, with the firm saying its no-alcohol portfolio delivered a “low-20s revenue increase” last year, led by Corona Cero.
“We are the leader in no-alcohol beer in many of our key markets, including the US, Brazil and Belgium, and see significant headroom for future growth,” the group said. Overall, AB InBev said underlying operating profits rose 8.2% to 20.96 billion US dollars (£16.58 billion) in 2024.
In the fourth quarter alone, it saw organic operating profits rise 10.1% to 5.23 billion dollars (£4.14 billion), beating analyst forecasts of 7.7%, and helping shares in the group rise 8%. AB InBev said it is “confident” for the year ahead. “While the operating environment remains dynamic in certain markets, we are confident in our ability to deliver on our outlook and energised about the opportunities ahead to grow the category,” the firm said.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “AB InBev has managed to pour out impressive results despite a sharp drop in volumes in China and weakness in Argentina.”. She added: “Corona sales crowned company results, helping deliver record revenues.
“The label may be more expensive, but a combination of taste and branding has been a winning formula for the company.”. But she flagged ongoing worries over the weak trading in China despite the better-than-expected results. “Although this shows that demand in other markets is still pumping and costs are being kept under control, there will be concerns about future growth if the slowdown in China takes hold,” she said.
