Anheuser-Busch InBev (BUD), the maker of Bud Light, seems to be slowly regaining its financial footing after the marketing mishap of roughly a year ago. On Thursday, 29 February 2024, the company published its Q4 results, indicating a 6.2% quarter-on-quarter and 7.8% fiscal-year gain.
Anheuser-Busch clawing its way back into the green after Mulvaney debacle
The organisation’s annual revenue of $59.38bn came in just under the Wall Street predictions of $60.52bn. Impacted by its beer sales, which declined by 3.6%, Q4 volumes dropped by 2.6%.
US results suffered as the company continues to struggle under the yoke of the marketing ploy involving transgender activist Dylan Mulvaney. Monday, 4 March 2024 marks 11 months since this initiative triggered a sweeping boycott of the Bud Light brand. Yearly revenue in this sector plummeted by 17.3% in tandem with the 12.1% drop in retail sales.
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Adding to Anheuser-Busch’s woes, the firm is also dealing with a labour strike threat at 12 of its US breweries. According to Yahoo Finance, the company reached a tentative agreement with the Teamsters on Wednesday, 28 February 2024.
During the investors’ call, Anheuser-Busch acknowledged the challenges it had faced over the past year in its US business. However, it emphasised its gradual growth from May 2023 through February 2024. Following the issues surrounding Bud Light, which once wore the crown as the American beer of choice, Anheuser-Busch’s stake in the US beer market now sits at approximately 38%.
In the company’s press release, CEO Michel Doukeris said:
Our business delivered another year of consistent profitable growth with a revenue increase of 7.8% and EBITDA growth of 7.0%. Strong free cash flow generation enabled us to progress on our deleveraging, propose an increased dividend to our shareholders and execute on a 1 billion USD share buyback.
