Anheuser-Busch Inbev (Bud) Stock is under pressure after the company has missed Wall Street estimates for income and volume growth, which raises concerns about the global industry.
The title dropped by more than 11% on Thursday after the overall volumes decreased by 1.9%, moving in the opposite direction of the 0.05% gain. Revenues reached $ 15 billion, at the bottom of the metric of $ 15.35 billion that Wall Street was waiting for.
Lower volumes in China (down 7.4%) and Brazil (down 6.5%) lowered quarterly results.
AB INBEV CEO, Michel Doukeris, told Yahoo Finance that the company was too indexed in China in bars and restaurants instead of home consumption and the country’s eastern region of the country, which made it “underperform the industry”.
Brazil has experienced bad weather and a consumer looking for value, but he said that he was confident in the “performance of the industry [there] in the long term. “”
In the United States, he said that consumers were “of choice” because the industry has undergone global sweetness. Sales to retailers fell 2.1% during the quarter.
Doukeris said its Busch Light brand increases while consumers, especially the low -income cohort, are looking for value options after years of inflationary pressure.
The company also reacts to the emphasis on the health and well-being of consumers, with poorly calories like Michelob Ultra, and a consumer moves away from alcohol. Doukeris thinks that the world portfolio is still well placed to meet this demand, with brands like Corona Cero and Cass Zero in Korea.
“This idea of low calories, weak carbohydrates, weak alcohol, no alcohol, gluten -free, sugar -free are innovations that meet growing demand for consumers to continue to be social, taking advantage of their moments, but no more control of their full consumption,” said Doukeris.
The negotiation session on Thursday marks the lowest equity share of AB Inbev from the bears of the COVVI-19 pandemic on March 16, 2020. Molson Coors (TAP) and Constellation Brands (Stz) were also under pressure.
