The boycott of Bud Light by U.S. consumers continues, as reported by its parent company, Anheuser-Busch InBev. Revenue fell by 17.3% in the U.S. during the fourth quarter, with a significant decline of 12.1% in sales to retailers, primarily attributed to a volume decrease in Bud Light sales.
Triggering the Boycott
Sales in the U.S. took a hit after transgender star Dylan Mulvaney’s social media post about a personalized can of Bud Light caused both anger and confusion among customers. Former President Donald Trump has urged consumers to end the boycott.
Global Impact
While the boycott has affected U.S. operations, Anheuser-Busch InBev has noted that its international operations remain largely unaffected. Worldwide volume decreased by 2.6% on an organic basis, with North American volume experiencing a more substantial decline of 15.3%, slightly surpassing analyst expectations.
Financial Results
Underlying profit for the company dropped to $1.66 billion, with earnings per share of 82 cents compared to $1.74 billion and 86 cents per share previously. Revenue, however, saw a modest increase of 6.2% to $14.67 billion, slightly below analyst predictions.
Analysts’ Perspectives
Following the results, analysts at RBC Capital Markets expressed some caution but deemed the outcome satisfactory. With adjustments to account for Argentina’s hyperinflation, the company now projects organic EBITDA growth between 4% and 8%.
Labor Settlement
Anheuser-Busch InBev was able to avoid a strike at U.S. plants after reaching a settlement with the Teamsters union late Wednesday.
Market Response
Shares of Anheuser-Busch InBev experienced a 1% decline after the Mulvaney controversy emerged, totaling a 7% drop since the issue began.
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