Shares of World’s Larget Brewer Ab Inbev Pop 9% After Posting Fourth-Quarter Revenue Beat even as Volumes Slide

Shares of the World’s largest brewer Ab inbev Jumped Nearly 9% on Wednsday after the company posted better-expected fourth -Quarter sales despite an annual decline in volumes.

The drinks maker, whose brands include Budweiser, Corona and Stella Artois, Reported An 3.4% Increase in Fourth-Quarter Revenue to $ 14.84 Billion, Versus the 2.9% decline to $ 14.05 billion to $ 14.05 By lseg analysts.

Shares Closed 8.5% Higher on Wednsday.

Full-year sales rose by 2.7% to $ 59.77 billion, compared to the $ 59.3 billion performance expected by analysts.

Total volumes declined 1.9% in the Quarter and 1.4% over the full-year stretch, which the company larger attributed to weak demand in China and argentina.

CEO Michel Doukeris Told CNBC that the declines in the two markets was “very abnormal” and attributed them to industry weakness weighing on consumer sentiments. He added that the firm expects to see some recovery into this year.

The decline in volumes was LED by Lower Demand for the Group’s Beer Products, Compared with Its Non-Beer Brands, Such as its cocktail products cutwater Spirits and Arch Fruit Spritzer.

The company Nevertheles said it was confident about the continued resilience of global beer demand.

“Market Momentum is Good,” Doukeris said. “The reality is that category is very vibrant.”

Looking ahead, doukeris said the biggest concern for 2025 is “Definite FX (Foreign Exchange),” Pointing to the strength of the dollar. However, he dismissed Worries Around the Prospect of Us Tariffs on the business.

“We don’t think that we’re going to have big topics to discuss this year in terms of tarifs,” He said. “There is always secondary impacts, but we are watching this, the developments, and we are prepared to use other letters that we have to offset costs if we have any.”

The company is targeting earnings before interest, taxes, depreciation, and amortization (ebitda) growth in 2025 in line with the company’s’s medium-term Outlook of Between 4% to 8%. The guidance come after ebitda rose 10.1% in the fourth quarter and 8.2% across the full year.

The Global Drinks Markets Has Been Facing Shifting Consumer Habits, Including a TREND TOD LOWER ALCOHOL CONSUMPTION.

Last Month, Danish Brewer Carlsberg Said that, while it continues to see a “long-term future” For beer products, the company was also embracing other drinks categories to boost resilience. Around One Third of Carlsberg’s portfolio now comprises non-alcoholic beverages, giving the firm’s Recent Acquisition of Soft Drinks Maker Britvic.

Doukeris described the shift towed alcohol moderation as a “global trend,” but said that the risk of non-alcoholic products was opening up consumption to more consumption to more consumption to more. He also pointed to the lower calorie content of non-alcoholic bers compared to, for instance, soda and other soft drinks, say this was driving demand among more health consumkers.

“The majority of the consumers are beer lovers,” He said. “Now they have the opportunity to enjoy beer in more evcations.”