Investing.com -- Anheuser Busch InBev (EBR:ABI) has posted revenue that met expectations and volumes that topped estimates in the first quarter, while analysts said they expect the impact of a U.S. boycott of its Bud Light brand to ease.
The firm has been dented by a backlash among conservatives in U.S. last year to a social media promotional campaign that featured transgender influencer Dylan Mulvaney. A boycott by some beer drinkers led the beverage to lose its spot atop the U.S. beer market to Constellation Brands (NYSE:STZ)' Modelo Especial.
In the three months to the end of March, revenues in the U.S. continued to suffer, dropping by 9.1% versus the year-ago period. Sales to retailers also fell by 13.7%, primarily due to slipping Bud Light volumes.
But analysts noted that the quarter was likely to be last to be deeply hit by the U.S. boycott. Future figures will include the boycott's impact, potentially making comparative numbers easier.
Meanwhile, the company behind Corona and Natural Light beers registered record volumes in other regions like Colombia and Brazil.
"We are encouraged by our results to start the year, and the consistent execution by our teams and partners reinforces our confidence in delivering on our 2024 growth ambitions,” said Chief Executive Michel Doukeris in a statement.
AB InBev said it expects full-year earnings before interest, tax, depreciation and amortization to grow in line with its medium-term outlook of between 4% to 8%. Like beer-making peers Heineken (AS:HEIN) and Carlsberg (CSE:CARLb), profit margins at AB InBev are projected to be boosted by easing input costs for items like barley and aluminium.
Analysts at Jefferies added that the more benign environment for commodity prices and a "good summer" could drive "upside risk" to Wall Street estimates for these beer companies.
Belgium-listed shares in AB InBev rose in early trading on Wednesday.