Budweiser brewer AB InBev hits profit forecasts, but costs rise (updated)

Anheuser-Busch Inbev SA

29/10/2026 06:23

Adds shares in paragraph 6, analyst comment in paragraph 11
AB InBev posts Q3 earnings in line with forecasts, revenues ahead
Joins other consumer firms in flagging cost pressures 
Analysts say brewers exposed to energy, diesel and aluminium costs
Iran war has driven up prices of many commodities 
By Emma Rumney
LONDON, Oct 29 (Reuters) - Anheuser-Busch InBev ABI.BR on Thursday met forecasts for third-quarter profit even as rising costs dragged on its gains, with the top brewer the latest consumer company to flag growing cost pressures in recent weeks. 
Consumer goods companies have stepped up their warnings on costs as the Iran war and its impact on the global economy drag on, with brewers like AB InBev, the world's largest by global volumes, hit by higher costs for energy, diesel, aluminium and more. 
The maker of Stella Artois and Budweiser said its organic operating profit in the quarter was up 3.9% with revenues rising more than expected, though commodity costs offset top-line growth in some countries. 
AB InBev flagged higher commodity, distribution and transportation costs in key markets like the United States, Europe and South Africa, where investments in sales and marketing also ate into profits.
It said its operating margin contracted 34 basis points to 36.1%, while its cost of sales hit $7.21 billion -- the highest since 2023.
Its shares, up some 30% so far this year, fell 2.7% in early trade.
Consumer goods bellwether P&G PG.N last week said higher costs would strike a bigger blow to annual profit. Tobacco maker Philip Morris International PM.N too said global conflicts were weighing on its earnings. Coca-Cola KO.N also warned of accelerating cost pressures. 
Diesel prices have jumped to record highs because of the Iran war, pushing up freight and transport costs across industries. The conflict has also made energy more expensive, and put pressure on supplies of aluminium, already at elevated prices for US buyers like AB InBev due to President Donald Trump's tariffs. 
AB InBev said it also saw another steep 16.8% drop in sales in China in the quarter, dragging on broad growth across most of its footprint and record high volumes in 15 markets.
The company has trailed rivals in the declining Chinese beer market, where its geographic spread and greater presence in venues such as nightclubs has left it more exposed to bad weather and a shift towards drinking at home.
"The good bits continued to do well and the bad bits continued to struggle," James Edwardes Jones, analyst at RBC Capital Markets, said of AB InBev's performance.

(Reporting by Emma Rumney; Editing by Tom Hogue and Saad Sayeed)
((Email: emma.rumney@thomsonreuters.com; Phone: +44 7391 409 253))