VITL - AB InBev Stays on Growth Track on Ongoing Initiatives | Benzinga
Anheuser-Busch InBev SA/NV (NYSE: BUD), alias AB InBev, has been benefiting from its unique commercial strategy, strong brand portfolio and investments in operational excellence. Continued business momentum due to relentless execution, investment in its brands and accelerated digital transformation have been the key drivers.
Additionally, the company looks well-poised to gain from the expansion of the Beyond Beer portfolio and investments in B2B platforms, e-commerce and digital marketing in the near term. The premiumization of the beer industry has been a key growth opportunity for AB InBev. These have been aiding the company's top line over the past few quarters.
However, BUD has been witnessing higher costs, owing to commodity cost inflation, increased supply-chain costs in some markets, investments in business and elevated operating costs. These have been weighing on the company's bottom-line results.
The Zacks Consensus Estimate for AB InBev's 2024 sales and earnings per share suggests growth of 3.7% and 12.1% year over year, respectively, from the year-ago period's reported numbers.
The Zacks Rank #3 (Hold) stock has gained 8.4% in the past year against the industry's growth of 15.7%. The Consumer Staple sector has declined 6.1% in the same period.
Image Source: Zacks Investment Research
What Places BUD Well?
AB InBev witnesses positive business momentum on pricing actions, ongoing premiumization and other revenue-management initiatives. Driven by these, the company registered organic revenue growth of 2.6% in first-quarter 2024. Robust revenue per hectoliter (hl) growth and revenue growth in 75% of its markets were the ...