Anheuser-Busch InBev SA (NYSE:BUD) saw its shares climb sharply on reporting third-quarter organic sales growth of 7.9% year-on-year, to $14.27 billion, beating the analyst consensus of $13.8 billion.
The brewery giant declared total volumes grew by 3.4%, with own beer volumes up by 2.8% and non-beer volumes up by 7.8%. Revenue per hl grew 4.3%.
Combined revenues of three global brands, Budweiser, Stella Artois, and Corona, rose 5% Y/Y.
Gross profit expanded 5.3% organically to $8.2 billion, and gross margin contracted 142 basis points to 57.7%.
Normalized EBITDA for the quarter increased 3% organically to $5.2 billion, with the margin contracting 174 basis points to 36.5%.
The company reported an Underlying EPS of $0.85 and Normalized EPS of $0.50, versus the consensus of $0.66.
From the outlook standpoint, Anheuser-Busch InBev expects its EBITDA outlook to grow 10-12% for FY21 and its revenue to grow ahead of EBITDA from a healthy combination of volume and price.
Anheuser-Busch InBev has struggled from the pandemic pressures as well as from the inflationary cost struggles. The large debt load and dividend reduction have not helped.
But experts say the company does appear cheap and would buy a third-quarter earnings swoon.
BUD shares are trading $6.59, or 11.5%, to $63.75 mid-morning Thursday.
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