Anheuser-Busch InBev reported third-quarter profits, revenues and volumes behind forecasts on Thursday, sending its shares down almost 4%.
The fall came as the world’s largest beer-maker’s $2 billion share buyback failed to win over investors.
It narrowed its full-year core earnings guidance to the top end of its existing range, despite selling less beer in markets including the US, Mexico, Europe and China.
Quarterly volumes in China registered double-digit declines.
Major beer and spirit makers have all seen reduced demand in recent months due to struggling economies, bad weather and competition from lower-priced rivals.
CEO of AB InBev Michel Doukeris said on the results, “Our teams and partners continue to execute our strategy and we are confident in our ability to deliver.”
He added that AB InBev expected full-year organic core profit (EBITDA) growth of between 6% and 8% versus 4% to 8% previously.
In view of increased amounts of free cash, expectations for a share buyback has been building among investors in the marker of Budweiser beer.
However, the $2 billion offer on Thursday – along with a guidance raise – was not enough to distract the market from AB InBev’s third quarter performance.
The company’s shares fell 3.8% in early trade.
Major Market Decline
AB InBev reported 7.1% organic earnings before interest tax and amortisation (EBITDA) growth for the third quarter – helped by cost-cutting – but analyst expectations were for 8.6% growth.
Its revenues and volumes saw a 2.1% rise and 2.4% decline respectively, compared to analyst forecasts for a 3.4% increase and a 0.4% decline.
In its largest market – the US – AB InBev sold less beer, but analysts said its performance was better than expected.
Adverse weather and weaker consumer demand led volumes to decline by low single-digits in Mexico and Europe, also large territories for sales.
Revenues and volumes were down 16.1% and 14.2% respectively in China, where AB InBev said sales in venues such as bars and restaurants was particularly weak.
Rival Carlsberg also reported low beer volumes in China, France and the UK on Thursday.
Heineken flagged challenging consumer and industry trends last week.
Read More: Carlsberg Shifts Marketing Focus But Maintains Forecast
