Anheuser-Busch (NYSE: BUD) reported 3Q earnings via press release a few hours ago, and it showed strong growth of hard seltzer, led by Bud Light Seltzer in the US, beating revenue estimates for the quarter, and turning the tide on profit. The earnings results surprised analysts.
The company showed strong 3rd Quarter results in the US, mainly due to “driving innovation and rebalancing our portfolio toward growth segments,” it said in a statement. Volumes actually rose by 1.9% for the company, after posting a 17% decline in 2Q.
A poll of analysts had forecast a 9.3% decline in EBITDA, but were surprised by a normalized decline of only 0.8%.
They posted US market share gain fueled by Bud Light Seltzer and Michelob Ultra, which remains second in A-B beer brands only to Bud Light, according to IRI. The company recently introduced Michelob Ultra hard seltzer.
The company’s portfolio of hard seltzers grew at double the rate of the rest of big beer.
A-B InBev is the world’s largest brewer, and their costs have been impacted by the coronovirus impact, as the packaging and distribution costs of canned & bottled products exceeds that of kegs. With on-premise outlet volume in the cellar, kegged product is stilling lagging in sales volume.