London — Brewer AB InBev said on Thursday its second-quarter sales volumes fell more than expected due to weak demand in Brazil and China, adding to investor concern about industry growth and sending the stock to a five-month low.
Shares in AB InBev, the maker of brands including Corona and Stella Artois, fell 10.7% to R1,067.67 on the day, the lowest since February and its biggest single-day drop since 2020.
Volumes at the world’s largest brewer by sales fell 1.9% in the three months through June, compared to analyst expectations for a 0.3% decline. A 9% drop in Brazil was a particular negative.
In China, where AB InBev has been struggling to keep pace with growth at rivals, volumes fell 7.4%.
The company did however report revenue and profit growth, with the latter ahead of forecasts at 6.5%.
CEO Michel Doukeris said Brazil had been hit by poor weather, which had extended through the beginning of July.
“Our brands remain healthy. We had very good growth for premium brands,” he said, adding the company could deliver in Brazil and across South America in the second half.
AB InBev has in recent quarters consistently outperformed expectations on profits and increased revenue by getting drinkers to pay more for its beers. But it, and other top brewers, have struggled to get volumes growing.
Rival Heineken also sounded cautious about volumes on Monday, citing tariff uncertainties that sent its shares down more than 8%.
Heineken said US tariff threats had hit consumer confidence and dented beer sales in the US and elsewhere in the Americas — key regions for AB InBev. But AB InBev did not cite this as a factor.
For AB InBev, analysts pointed to bright spots, including in North America, where the company performed better than expected.
But problems in Brazil, where it underperformed the wider industry, overshadowed this, according to Siphelele Mdudu, investment analyst at Matrix Fund Managers, an AB InBev investor.
Still, Mdudu said Heineken had grown market share in Brazil and was planning to increase competition there including via a new brewery opening this year.
“In your own backyard, Brazil, you’ve lost volumes,” he said, adding AB InBev “cannot afford to disappoint” in such key markets.
Note: Thursday July 31 2025
This story has been updated with closing share price information.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.