BUD stocks weakened on Friday after Budweiser, Bud Light and Michelob Ultra Maker anheuser busch inbev (Tsubomi) cleared its first-quarter guidance early on Thursday. Global sales rose and BUD inventories surged on Thursday, but the recent US boycott of Bud Light weighed on the brewer’s market share in the second quarter.
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Anheuser-Busch Earnings
result: Anheuser-Busch earnings grew 8.3% to $14.2 billion on 13.2% revenue growth to 65 cents per share.
expectations: Analysts expect Anheuser-Busch’s earnings to fall 11.9% to 59 cents per share.
Outlook: Anheuser-Busch led 2023 earnings before interest, tax, depreciation and amortization (EBITDA) growth between 4% and 8%. This is consistent with our medium-term outlook. The company expects earnings growth ahead of EBITDA “from a healthy mix of volumes and prices.”
FactSet forecasts revenue growth of 7.6% for the full year to $62.19 billion, up 0.6%.
The Brussels-based company didn’t report specific sales numbers for its beer brands in its earnings call.
Bud Light’s marketing controversy
Bud Light and Anheuser-Busch Partner with Transgender Influencer Dylan Mulvaney to Promote Bud Light and Enter Sweepstakes at March Madness, National Collegiate Athletic Association Championship Basketball Tournament After that, it faced a boycott in early April.
On April 1, the popular influencer with more than 12.5 million followers on TikTok and Instagram announced that Mulvaney, dressed as Audrey Hepburn’s character Holly Golightly in the movie Breakfast at Tiffany’s, launched a can of Bud Light. posted a video of breaking the The caption included details about the sweepstakes and the hashtag #budlightpartner. The customized Bud Light can featured in the video features an image of Mulvaney.
The post sparked admiration and outrage across the political spectrum. Public boycotts among conservative consumers spread quickly on social media. Georgia Rep. Marjorie Taylor Greene and country singer Kid Rock were among those who led protests against the Bud Light brand.
bud light volume dive
Bud Light’s sales volume, which includes sales at grocery stores, convenience stores and liquor stores, fell 26.1% in the week ending April 22 compared to the same period last year, trade publication Beer Business Daily reported Sunday. Volume fell 21.1% for the week ending March 15th. Bud Light sales are down 8% so far this year.
“This was the result of one can. I added that it was nothing more than However, he said it is still too early to determine the full impact of the boycott or predict when it will wear off. but did not disclose details.
“Everything we do should be about beer,” Dokeris said. “Beer itself should not be the focus of discussion.”
He said the situation was hurting employees and frontline workers as the boycott continued. Doukeris said Anheuser is stepping up financial support for affected US frontline workers and investing in its brands.
Doukeris said on the earnings call that the company plans to triple its planned investment in Bud Light this summer. Anheuser-Busch will also focus its marketing on sports and music.
According to Doukeris, Bud Light’s sales decline accounted for only 1% of global sales during that period. He added that the company has the resources to sustain its global business and support its U.S. team.
Rise in sales of competitors
in the meantime, Molson Coors Beverage (Tap) saw a 13.3% increase in Coors Lite volume and a 13.6% increase in Miller Lite volume in the third week of April. According to the Beer Business Daily, at the time, the market shares of Coors Light, Miller Light and Bud Light traded almost 1 to 1.
“The shocking decline in Bud Light Blue’s market share continued rapidly through the third week of April, when it actually deteriorated somehow,” Beer Business Daily wrote on its website. “I have never seen a national share change so dramatically in such a short period of time.”
Alyssa Heinerscheid, the vice president of marketing for Bud Light’s project, took a leave of absence following the boycott. were also given leave.
BUDStock
Anheuser-Busch InBev trades as an American Depositary Receipt (ADR) on the New York Stock Exchange under the BUD ticker.
BUD shares fell 1.6% on Friday, nearly halving Thursday’s gains. Shares surged 3.5% to 65.90 after Thursday’s earnings release.
BUD shares are trading in a flat buy zone after crossing the 61.99 buy point on March 3. The current buy zone extends to 65, 5% above the buy point.
Stocks have also bounced back from testing support at the 10-week moving averages.
Anheuser-Bush’s relative strength is off recent highs, with an RS rating of 90.
BUD’s share price is up 9.5% over the past three months and is up 8% year-to-date.
Follow Harrison Miller on Twitter for stock news and updates. @IBD_ Harrison
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