Anheuser-Busch InBev (OUTBREAK) reported Thursday that its global sales volume rebounded in June after three months of declines due to the Covid-19 pandemic.
The restrictions related to the coronavirus crisis had been strongly affecting the brewery’s business, reducing global sales volume by approximately a third in April and a fifth in May, compared to the same time the previous month.
Many bars, pubs, and restaurants were forced to close earlier this year as orders to stay home were imposed around the world. In April, the company also had to close some of its operations in countries such as Mexico, South Africa, and Peru.
But Budweiser owner Corona and Stella Artois said Thursday that sales recovered slightly last month, with a volume of 0.7% compared to May.
The Belgian company reported a 17.7% drop in revenue for the quarter ending June compared to the second quarter of 2019. That was less than the 31.5% drop analysts had expected, according to the provider of Refinitive data
Shares in Brussels rose 5.4% on Thursday.
“Our performance in the second quarter was significantly affected by the Covid-19 pandemic, as expected,” the company said in a statement. “However, as the quarter progressed, we saw considerable improvement.”
Like many industries, global alcohol manufacturers are set for a historic slump this year, with sales forecast to drop 12%, according to a May forecast from IWSR Drinks Market Analysis, a global company that tracks the sector.
However, beer is expected to recover faster than most categories, mainly because it is cheaper to buy than wine or spirits.
The rebound is already clearly taking shape in Asia. Business in the region improved in the second quarter, mainly due to a strong return in China, according to the company.
“China delivered exceptional results, with its highest monthly volume,” it said in a statement.
But the picture is dramatically different between countries. During his earnings call, AB InBev also announced a $ 2.5 billion reduction, citing “an impairment risk” related to its business in Africa.
Its business in South Africa, for example, has already been severely affected by a national blockade from March to May, which included a ban on the sale of alcoholic beverages, the company said. It now faces a prolonged slowdown there, as the government announced another ban on alcohol sales earlier this month, which will cut profits next quarter, the company warned.
AB InBev hopes to offset part of that cost. He cited a $ 1.9 billion intake from the sale of his Australian business, after unloading operations there last summer to Japanese beer giant Asahi in a $ 11.3 billion deal.
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