Publication Date: February 26, 2025
10:13 AM Eastern Time
Major Highlights
- Sales in North America enabled Budweiser to exceed analysts’ predictions for quarterly profits and revenue.
- The brewing titan’s sales in the U.S. were fueled by the popularity of Michelob Ultra and Bud Light brands.
- The Budweiser board suggested a 22% rise in the yearly dividend.
On Wednesday, Budweiser (BUD) stock climbed by 8% in the U.S. stock exchange after the globe’s largest brewer disclosed results that surpassed expectations and revealed intentions to increase dividends amid rising demand in North America.
The firm, recognized for Budweiser and Bud Light beers, announced a fourth-quarter earnings per share (EPS) of $0.88, considerably above the $0.71 predicted by analysts from Visible Alpha. Revenue increased by over 3% compared to the previous year, reaching $14.84 billion, also exceeding market forecasts.
Sales in the U.S. rose by 0.8%, attributed to revenue management tactics and premiumization initiatives. This signifies the second consecutive quarter of year-on-year growth, following a decline in sales due to backlash against Bud Light’s connection with transgender influencer Dylan Mulvaney. Budweiser indicated that the rise in sales from Michelob Ultra and Bud Light signifies an increase in market share.
“Beer is a cherished product among consumers and continues to be a thriving category worldwide,” stated CEO Michel Doukeris. “Our robust performance in 2024 demonstrates the effective implementation of our strategy and the commitment and effort of our workforce.”
The Budweiser board recommended a 22% hike in the annual dividend to €1.00 per share ($1.05), subject to shareholder approval at the annual meeting in April.
Despite the stock price rise today, Budweiser’s American Depository Shares have still fallen by approximately 6% over the last year.
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