AB InBev Reports Strong Q3 Earnings Driven by Latin America Despite China Challenges
Anheuser-Busch InBev reported a 4.9% increase in third-quarter revenue, reaching 16,5 miljard dollar, as strong pricing strategies and premium brands offset weak consumer demand in China. The world’s largest brewer posted metrics largely in alignment with market expectations, according to De Tijd, though investors reacted cautiously as the stock has already climbed significantly this year.
Latin America Volumes Drive Growth While China Lags
Geographic performance remained starkly divided during the quarter. Latin America continued to lead the company’s expansion, generating higher sales volumes and increased revenue fueled by the popularity of Corona and other major brands. Meanwhile, the Chinese market remained a persistent drag on performance, with local consumption showing no clear signs of a sustained recovery. Beer volumes globally faced historical pressure from consumer affordability concerns and shifting attitudes toward alcohol in mature markets, though KBC Securities analyst Wim Hoste noted a stabilizing return to overall volume growth that first emerged earlier in the year.
Adjusted EBITDA grew 3.9% to bijna 6 miljard dollar. The total quarterly revenue climb of 4.9% was calculated on an organic basis, stripping out acquisitions, divestitures, and currency fluctuations. Non-alcoholic beers experienced a sharp 35% revenue increase, while the Beyond Beer category—encompassing canned cocktails and alternative beverages—grew by 19%.
KBC Securities Raises AB InBev Price Target
Following the earnings release, KBC Securities adjusted its price target for AB InBev from 74.00 euros to 77.00 euros while maintaining a buy recommendation, according to Beursduivel.be. The financial institution cited an attractive valuation with an expected free cash flow yield of roughly 10% for 2026. Conversely, Testaankoop maintained a hold recommendation on the stock, pointing out that a year-to-date share price increase of roughly 34% leaves limited short-term upside potential for new investors.
AB InBev management reaffirmed its full-year outlook for 2026, projecting an autonomous EBITDA increase of 4% to 8%. To show confidence in the company's healthy balance sheet and strong free cash flow generation, leadership announced an interim gross dividend of 0.40 euros per share.