Anheuser-Busch's first quarter delivered operating margin expansion despite a year-over-year decline in both revenue and sales volumes, a dynamic that investors responded to with a positive market reaction. Management attributed the revenue shortfall primarily to calendar-related shipment timing, including the impact of the leap year and a later Easter, which led to lower reported volumes. Notably, CEO Michel Doukeris highlighted the continued outperformance of the company’s no-alcohol beer portfolio, which grew revenues by 34%, and strong digital marketplace growth as key bright spots. Management also pointed to progress in the U.S. market, where investments in mega brands like Michelob Ultra and Busch Light helped the company gain market share even as broader industry volumes softened.
Is now the time to buy BUD? Find out in our full research report (it’s free).
Anheuser-Busch (BUD) Q1 CY2025 Highlights:
- Revenue: $13.63 billion vs analyst estimates of $13.81 billion (6.3% year-on-year decline, 1.3% miss)
- Adjusted EBITDA: $4.86 billion vs analyst estimates of $4.81 billion (35.6% margin, 0.9% beat)
- Operating Margin: 26.5%, up from 24.9% in the same quarter last year
- Organic Revenue fell 2.2% year on year (2.6% in the same quarter last year)
- Sales Volumes fell 2.2% year on year (-0.6% in the same quarter last year)
- Market Capitalization: $116.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Anheuser-Busch’s Q1 Earnings Call
- Robert Ottenstein (Evercore ISI) asked about the sustainability of U.S. market share gains and ongoing productivity programs. CEO Michel Doukeris explained that continued marketing investments and a multi-year focus on brand building are expected to support growth in the mature U.S. market.
- Sanjeet Aujla (UBS) questioned the company’s underperformance in China and prospects for volume recovery. Doukeris acknowledged regional weakness but outlined plans to accelerate off-trade expansion and strengthen execution around mega brands and innovation.
- Simon Hales (Citi) raised concerns about the resilience of consumer demand and the outlook for new product launches like Michelob Ultra Zero. Doukeris addressed the distinction between consumer sentiment and behavior, highlighting beer’s resilience and ongoing gains in consumer participation.
- Edward Mundy (Jefferies) sought clarity on the shift toward “balanced choices” and the sustainability of margin leverage. Doukeris detailed how balanced-choice products address consumer barriers, while CFO Tennenbaum described ongoing benefits from lower capex and debt reduction.
- Olivier Nicolai (Goldman Sachs) asked about margin improvement drivers and the risk of continued cost pressures. Tennenbaum cited hedging and local production as mitigants, while noting that input costs may increase in the second half of the year.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the impact of increased brand activation and marketing investments during key global events, (2) the pace of recovery and execution improvements in China and other underperforming markets, and (3) the success of new product launches in non-alcohol and balanced-choice segments. The effectiveness of cost management programs and the resilience of margins amidst currency and input cost fluctuations will also be central themes to watch.
Anheuser-Busch currently trades at $69, up from $65.51 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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