AB InBev shares tumble 12% as Q2 sales miss expectations amid weak demand in China, Brazil
By lauraharris // 2025-08-04
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  • AB InBev shares fell 12 percent after the company reported weaker-than-expected Q2 results, with revenue of $15.00B missing estimates despite a modest three percent year-over-year increase.
  • Global volumes fell 1.9 percent, with beer volumes down 2.2 percent. China and Brazil were key drags, posting 7.4 percent and 6.5 percent volume drops respectively.
  • The brand remains under pressure more than a year after a 2023 boycott linked to a controversial marketing campaign. Recovery efforts, including a costly Super Bowl ad, have had limited success.
  • Potential cost impacts from aluminum tariffs and geopolitical tensions add further pressure, especially given AB InBev's European footprint and Brazilian ownership stake.
  • CEO Michel Doukeris emphasized confidence in the company's long-term strategy, but analysts remain cautious amid brand damage, under performance in key markets, and rising trade-related headwinds.
Shares of Anheuser-Busch InBev (AB InBev) plunged 12 percent on Thursday, July 31, after the world's largest beer producer reported weaker-than-expected second-quarter results, weighed down by sluggish demand in China and Brazil. According to data from Visible Alpha, the maker of Budweiser, Michelob and Stella Artois posted adjusted earnings per share of $0.98, slightly above analyst expectations of $0.96. However, quarterly revenue came in at $15.00 billion, missing estimates of $15.28 billion despite a modest three percent year-over-year increase. Global volumes were also softer than expected, falling 1.9 percent to 143.3 million hectoliters. Beer volume declined 2.2 percent, while non-beer volume managed a slight 0.3 percent increase. China and Brazil were key weak spots in the quarter. Revenue in China slumped six percent as volumes dropped more than seven percent, reflecting macroeconomic challenges and shifting consumer preferences. In Brazil, revenue fell nearly two percent with a 6.5 percent drop in volume, underscoring continued volatility in Latin America's largest market. Performance in other regions helped offset the drag. U.S. revenue climbed two percent, recovering from a five percent decline in the first quarter. AB InBev reported revenue growth across all other global markets. "The operating environment remains dynamic," said CEO Michel Doukeris. However, Doukeris also noted the consistent execution of the company's strategy produced a solid first half of the year and "reinforces our confidence in delivering on our outlook for 2025." Despite the selloff, AB InBev shares are still up about 17 percent year-to-date, having rebounded steadily from a more than two-year low in January.

AB InBev still recovering from woke ad campaign fallout

Aside from the missed Q2 sales expectations, rising geopolitical and trade-related risks also add to the pressure. AB InBev could face increased costs from potential tariff impacts due to its European operations and partial Brazilian ownership. The industry is already grappling with a 50 percent tariff on aluminum, which could significantly raise the cost of beer cans in the U.S., although AB InBev has said 98 percent of its cans are produced domestically. The company is also still recovering from brand damage sustained after a 2023 Bud Light marketing campaign featuring transgender influencer Dylan Mulvaney sparked a prolonged and politically charged boycott. The incident led to nearly a year of declining U.S. sales for the once-dominant brand and reshaped beer market dynamics across North America. Efforts to revive Bud Light's image, including a high-profile Super Bowl ad blitz, have fallen flat. (Related: Bud Light's parent company loses $390M after Dylan Mulvaney ad controversy.) "We think a lot of consumers are never going back, but some are coming back," said CFRA analyst Garrett Nelson. "The longer-term impact, I think we won't know until we see their second-quarter results." With trade tensions looming and critical markets underperforming, AB InBev faces growing pressure to regain volume momentum while navigating a volatile global landscape. Investors will be closely watching the second half of the year for signs of stabilization in China and Brazil and clarity on any potential trade-related headwinds. Visit Collapse.news for more similar stories. Watch this video explaining why Bud Light cannot recover from the boycott in response to its failed partnership with Dylan Mulvaney.
This video is from The Prisoner channel on Brighteon.com.

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Sources include: TheationalPulse.com Yahoo.com Brighteon.com
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