AB InBev Meets Q3 Profit Forecasts Amid Rising Costs

Anheuser-Busch InBev met third-quarter profit forecasts, reporting a 3.9% increase in organic operating profit and revenues that exceeded expectations. However, the world's largest brewer by volume saw its operating margin contract to 36.1% as cost of sales reached $7.21 billion, the highest level since 2023.

The company attributed these financial pressures to rising costs for energy, diesel, and aluminium, alongside increased distribution and transportation expenses across the United States, Europe, and South Africa. Management linked these increases to the Iran war and existing aluminium tariffs imposed by President Donald Trump.

Performance in China declined sharply, with sales dropping 16.8%. The company struggled against competitors in the region due to a consumer shift toward home consumption and adverse weather that disrupted its distribution network, which relies heavily on nightclubs.