AB InBev sales fall 32% in April

The world’s largest brewer, AB InBev, saw its shipments fall 32% in April alone, after widespread bar and restaurant closures cut off one of its key routes to market.

(Photo: AB InBev)

Sinking sales “increased significantly toward the end of the quarter”, the company said in its financial results posted on 7 May. Total volumes fell by 9.3%. However, this figure would have only been 3.6% if its business in China, where lockdowns had been imposed from January, isn’t factored in.

Global revenue also declined by 5.8%. The company expects the impact of coronavirus lockdowns will be “materially worse” later in the year.

Volumes fell 32% in April, when AB InBev was forced to close its brewing facility in Mexico to adhere to the country’s own social distancing measures. Adjusted earnings fell 14%, slightly below analyst’s expectations.

The company was also affected by a number of countries that had banned the sale and production of alcohol, in markets such as Mexico, South Africa and Peru, where “brewery operations have been severely restricted.”

AB InBev said it will “continue to work with governments in this fast-changing environment and are doing our part in the fight against COVID-19. We look forward to resuming our operations when appropriate.”

The combined revenues of Budweiser, Stella Artois and Corona, declined by 11.0% globally and by 17.5% outside of their respective home markets.

AB InBev is the latest brewer to report a sharp decline in beer sales at the start of the year. Molson Coors’ beer sales fell close to 9% in the first three months of the year

Danish brewer Carlsberg’s sales fell by 7.4% in the first quarter of 2020, but CEO Cees t’Hart warned the worst is yet to come.