AB InBev Revenue Grows 4.9% in Third Quarter Despite China Slump and Cost Pressure
Key Facts
AB InBev reported 4.9% organic revenue growth in the third quarter of 2026, with total volumes up 0.4% and revenue per hectoliter rising 4.2%, according to the company’s filing published on Nasdaq on October 29. Earnings were in line with expectations, while revenue growth exceeded analysts’ estimates, according to Reuters. Reported revenue was $16.512 billion, compared with $15.133 billion in the same period of 2025. Adjusted earnings before interest, taxes, depreciation and amortization rose 3.9% to $5.957 billion. The results showed overall growth led by revenue and product mix, against a backdrop of a sharp downturn in China and higher operating costs.
The company said organic revenue growth resulted from revenue management and a favorable product mix, supported by premium products and the beyond-beer segment. It added that these factors accompanied broad-based volume growth across its regions and offset the impact of a difficult Chinese market. On the earnings call, the chief executive said the company had been pricing its products in line with inflation, while taking account of conditions in each market and brands’ ability to command a higher price. He said: "We were setting prices, as we always do, in line with inflation." This statement alone does not amount to a new announcement that the approach will continue, but it explains how management handles pricing across different markets.
China stood out as the weakest reported market, with sales volumes and revenue each down 16.8% in the third quarter, while adjusted operating profit fell 30.5%. The company attributed the volume decline to inventory management in a difficult market, affected by unusual weather and continued weakness in on-premise consumption channels such as restaurants and bars. Revenue per hectoliter in China was stable, so the volume decline translated directly into a matching fall in revenue. Adjusted profit fell more than sales, reflecting the depth of pressure on operating performance in the market. By contrast, sales volume in the Central America region rose 7.3%, supported by market-share gains in Mexico.
The company also posted weaker performance in the United States, where revenue fell 1.2% and sales to retailers declined 3.1% in a market described in coverage as weak. In the United States, Europe and South Africa, costs for commodities, distribution and transport limited the impact of revenue growth, according to Reuters. The chief financial officer told the news agency that diesel is among the costs the company cannot hedge in some markets. Hedging contracts that had provided protection against rising costs have also begun to expire, while consumer goods companies have warned that costs linked to the conflict in the Middle East have begun to weigh on profits or could affect them in the coming months. The chief financial officer expected some cost pressures in 2027, but described the year overall as normal.
On shareholder returns, the board approved an interim dividend of €0.40 per share for fiscal 2026, compared with €0.15 for 2025. The company set November 19, 2026, as the ex-dividend date on Euronext, with a record date of November 20 and payment scheduled for November 23. AB InBev, according to an Investing.com report, repurchased $2.60 billion of shares under a program totaling $6.00 billion. These steps accompany continued growth in revenue and adjusted earnings, despite regional variation and cost pressures. Chief Executive Michel Doukeris said its portfolio of major brands and platforms continued to earn consumers’ trust.
AB InBev shares fell 2.7% in early trading on October 29, according to Reuters, after the results were published. The shares had risen about 30% since the start of the year through the time of the report. Reuters did not attribute the decline to any single factor, while its coverage highlighted higher commodity, distribution and transport costs alongside the company’s disclosure of weakness in China. For its outlook, the company said it is targeting adjusted earnings before interest, taxes, depreciation and amortization growth of between 4% and 8% in fiscal 2026, in line with its medium-term outlook. It also expects net capital expenditure of between $3.5 billion and $4.0 billion during the year.