Anheuser-Busch’s latest quarter was marked by a negative market reaction, as sales fell short of Wall Street’s expectations, despite non-GAAP profit per share coming in slightly above consensus. Management pointed to continued volume declines in key regions, particularly China and Brazil, as the main challenge, while highlighting improved margin performance and ongoing investment in premium brands. CEO Michel Doukeris acknowledged, “This volume was not where we would like to be,” referencing soft industry conditions in several large markets and a cautious consumer backdrop.
Is now the time to buy BUD? Find out in our full research report (it’s free).
Anheuser-Busch (BUD) Q2 CY2025 Highlights:
- Revenue: $15 billion vs analyst estimates of $15.3 billion (2.1% year-on-year decline, 1.9% miss)
- Adjusted EPS: $0.98 vs analyst estimates of $0.95 (3.5% beat)
- Adjusted EBITDA: $5.30 billion vs analyst estimates of $5.31 billion (35.3% margin, in line)
- Operating Margin: 26.4%, up from 25.3% in the same quarter last year
- Organic Revenue fell 1.9% year on year
- Market Capitalization: $102.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Anheuser-Busch’s Q2 Earnings Call
- Mitchell John Collett (Deutsche Bank) asked about comfort with ongoing volume declines and the sustainability of margin improvements. CEO Michel Doukeris acknowledged the challenges in Brazil and China but expressed confidence in the long-term industry outlook. CFO Fernando Tennenbaum described margin gains as structurally supported by cost controls and productivity, not just temporary factors.
- Robert Edward Ottenstein (Evercore ISI) inquired about learnings from the U.S. turnaround and their applicability elsewhere. Doukeris highlighted the importance of consistent investment in megabrands and meaningful innovation, stating these lessons are informing global strategy.
- Sanjeet Aujla (UBS) pressed on China’s on-premise weakness and recent pricing moves in Brazil. Doukeris noted continued softness in China’s on-trade channel and a deliberate strategy to improve off-premise performance, while expecting price relativity to normalize in Brazil as the year progresses.
- Andrea Pistacchi (Bank of America) questioned the ability to maintain or grow U.S. profit if industry declines worsen. Doukeris pointed to productivity, premiumization, and mix management as key levers for profit stability, even in a softer market.
- Chris Pitcher (Rothschild & Company) asked if China’s volume decline is cyclical or structural and about India’s growth. Doukeris explained the need to rebalance toward off-premise in China, while viewing India as a long-term premiumization opportunity.
Catalysts in Upcoming Quarters
In upcoming quarters, our analysts will be monitoring (1) the pace of recovery in volumes across Brazil and China, (2) the continued momentum of premium and non-alcohol brands in both developed and emerging markets, and (3) the effectiveness of digital and direct-to-consumer initiatives in driving incremental revenue. How Anheuser-Busch adapts its product mix and geographic focus will also be critical to longer-term growth.
Anheuser-Busch currently trades at $61.67, down from $66.54 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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