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AB InBev's Latin America Strength Offsets U.S. Beer Weakness
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Key Takeaways
AB InBev posted resilient Q3 results as Latin America strength helped offset U.S. revenue and volume declines.
AB InBev grew EBITDA and expanded margins as pricing discipline offset U.S. volume declines.
Latin America saw growth, led by Colombia volumes, Brazil pricing, and Mexico's premium and no-alcohol brands.
Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev’s, third-quarter 2025 results underscore how Latin America continues to act as a stabilizing force, helping offset ongoing softness in the U.S. beer market. While U.S. revenues declined 0.8% year over year in the third quarter amid lower volumes and a cautious consumer backdrop, the company delivered a resilient consolidated performance, supported by strong execution across key Latin American markets.
In the United States, sales to retailers fell 2.5% year over year and sales to wholesalers declined 2.7%, reflecting industry-wide pressure on beer consumption. However, disciplined revenue management and productivity initiatives enabled EBITDA growth of 0.4% and margin expansion of 42 basis points (bps), highlighting AB InBev’s ability to defend profitability even in a soft demand environment.
In contrast, Latin America delivered healthier fundamentals. Colombia stood out with low-teen revenue growth in the third quarter, driven by record-high volumes, premium brand momentum and market share gains, translating into mid-single-digit EBITDA growth. Brazil, despite facing unseasonable weather and a weak consumer environment, showcased the benefits of pricing discipline and cost control. Revenues per hectoliter rose 6.5%, allowing EBITDA to remain flat with 68 bps of margin expansion, even as volumes declined sharply.
Mexico also registered steady growth, posting low-single-digit revenue gains in the quarter and mid-single-digit growth in the first three quarters of 2025, supported by premium brands such as Modelo and Pacifico, and strong traction in no-alcohol offerings like Corona Cero.
Overall, AB InBev’s geographic diversification and strength in Latin America, combined with effective revenue management, helped cushion U.S. beer weakness, reinforcing the company’s ability to deliver EBITDA growth and margin expansion in a challenging global beer market.
The Zacks Rundown for BUD
AB InBev’s shares have gained 8.5% in the past three months compared with the industry’s growth of 2%.
Image Source: Zacks Investment Research
From a valuation standpoint, BUD trades at a forward 12-month price-to-earnings ratio of 15.73X, higher than the industry’s 14.19X multiple.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AB InBev’s 2025 and 2026 earnings implies year-over-year growth of 3.7% and 12.3%, respectively. Earnings estimates for 2025 and 2026 have been southbound in the past 30 days. BUD currently carries a Zacks Rank #3 (Hold).
Solid Picks in BUD’s Broader Sector
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Monster Beverage Corporation (MNST - Free Report) , The Vita Coco Company, Inc. (COCO - Free Report) and United Natural Foods, Inc. (UNFI - Free Report) .
The Zacks Consensus Estimate for Monster Beverage’s 2025 sales and earnings indicates growth of 9.7% and 22.8%, respectively, from the year-ago period’s reported figures. MNST has a trailing four-quarter earnings surprise of 5.5%, on average.
Vita Coco develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO has a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Vita Coco’s 2025 sales and earnings indicates growth of 18% and 15%, respectively, from the year-ago period’s reported figures. COCO has a trailing four-quarter earnings surprise of 30.4%, on average.
United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. UNFI currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for United Natural Foods’ 2025 sales and earnings indicates growth of 1% and 187.3%, respectively, from the year-ago period’s reported figures. UNFI has a trailing four-quarter earnings surprise of 52.1%, on average.
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AB InBev's Latin America Strength Offsets U.S. Beer Weakness
Key Takeaways
Anheuser-Busch InBev SA/NV (BUD - Free Report) , alias AB InBev’s, third-quarter 2025 results underscore how Latin America continues to act as a stabilizing force, helping offset ongoing softness in the U.S. beer market. While U.S. revenues declined 0.8% year over year in the third quarter amid lower volumes and a cautious consumer backdrop, the company delivered a resilient consolidated performance, supported by strong execution across key Latin American markets.
In the United States, sales to retailers fell 2.5% year over year and sales to wholesalers declined 2.7%, reflecting industry-wide pressure on beer consumption. However, disciplined revenue management and productivity initiatives enabled EBITDA growth of 0.4% and margin expansion of 42 basis points (bps), highlighting AB InBev’s ability to defend profitability even in a soft demand environment.
In contrast, Latin America delivered healthier fundamentals. Colombia stood out with low-teen revenue growth in the third quarter, driven by record-high volumes, premium brand momentum and market share gains, translating into mid-single-digit EBITDA growth. Brazil, despite facing unseasonable weather and a weak consumer environment, showcased the benefits of pricing discipline and cost control. Revenues per hectoliter rose 6.5%, allowing EBITDA to remain flat with 68 bps of margin expansion, even as volumes declined sharply.
Mexico also registered steady growth, posting low-single-digit revenue gains in the quarter and mid-single-digit growth in the first three quarters of 2025, supported by premium brands such as Modelo and Pacifico, and strong traction in no-alcohol offerings like Corona Cero.
Overall, AB InBev’s geographic diversification and strength in Latin America, combined with effective revenue management, helped cushion U.S. beer weakness, reinforcing the company’s ability to deliver EBITDA growth and margin expansion in a challenging global beer market.
The Zacks Rundown for BUD
AB InBev’s shares have gained 8.5% in the past three months compared with the industry’s growth of 2%.
Image Source: Zacks Investment Research
From a valuation standpoint, BUD trades at a forward 12-month price-to-earnings ratio of 15.73X, higher than the industry’s 14.19X multiple.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AB InBev’s 2025 and 2026 earnings implies year-over-year growth of 3.7% and 12.3%, respectively. Earnings estimates for 2025 and 2026 have been southbound in the past 30 days. BUD currently carries a Zacks Rank #3 (Hold).
Solid Picks in BUD’s Broader Sector
We have highlighted three better-ranked stocks from the Consumer Staples sector, namely Monster Beverage Corporation (MNST - Free Report) , The Vita Coco Company, Inc. (COCO - Free Report) and United Natural Foods, Inc. (UNFI - Free Report) .
Monster Beverage is a marketer and distributor of energy drinks and alternative beverages. MNST flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Monster Beverage’s 2025 sales and earnings indicates growth of 9.7% and 22.8%, respectively, from the year-ago period’s reported figures. MNST has a trailing four-quarter earnings surprise of 5.5%, on average.
Vita Coco develops, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO has a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Vita Coco’s 2025 sales and earnings indicates growth of 18% and 15%, respectively, from the year-ago period’s reported figures. COCO has a trailing four-quarter earnings surprise of 30.4%, on average.
United Natural Foods is the leading distributor of natural, organic and specialty food and non-food products in the United States and Canada. UNFI currently flaunts a Zacks Rank #1.
The Zacks Consensus Estimate for United Natural Foods’ 2025 sales and earnings indicates growth of 1% and 187.3%, respectively, from the year-ago period’s reported figures. UNFI has a trailing four-quarter earnings surprise of 52.1%, on average.