Anheuser-Busch InBev's third-quarter net profit increased to $1.47 billion, slightly outperforming analysts' expectations, despite the controversy stirred by Dylan Mulvaney's post about Bud Light. The company's revenue climbed to $15.57 billion across 80% of its global markets, excluding the U.S., where operating profit suffered a 29.3% decrease due to market share performance, productivity loss, increased sales and marketing investments, and support measures for wholesaler partners.
The Mulvaney issue affected U.S sales but did not impact markets such as Colombia, Mexico, and Brazil. The brewing giant stated that total beer market share has remained stable since the end of April.
In reaction to these developments, Anheuser-Busch InBev announced a $1 billion stock buyback and a $3 billion debt buyback, reaffirming its annual guidance. Despite a 15% drop in AB InBev shares since March, they experienced a 4% rise in early Brussels trade today.
Citi analysts cautioned that reliance on Argentina for organic sales growth and ongoing foreign exchange headwinds might moderate the share price reaction. This warning comes despite the stability in total beer market share and the reiteration of annual guidance by Anheuser-Busch InBev.
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