LEUVEN / LONDON (IT BOLTWISE) – The world’s largest beer producer AB Inbev has announced that it will buy back $6 billion of its own shares over the next 24 months. This decision comes at a time when the company is faced with a difficult market environment and reduced global demand. Despite these challenges, AB Inbev was able to increase its operating profit thanks to increased prices and cost-cutting measures.
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The world’s leading beer brewer AB Inbev has announced a significant step in a challenging market environment: the group plans to buy back its own shares worth $6 billion over the next two years. This decision comes at a time when the company is struggling with reduced demand worldwide. Nevertheless, AB Inbev was able to increase its operating profit through price increases and increased sales of premium brands.
In the third quarter, AB Inbev reported a 3.7 percent decline in adjusted sales compared to the previous year. At the same time, organic sales rose slightly by almost one percent to $15.13 billion. Earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted for special effects increased by 3.3 percent to $5.59 billion. However, the bottom line profit fell by half to $1.05 billion, which is mainly due to valuation adjustments for certain financial contracts.
Analysts were positively surprised by the announced share buybacks. James Edwardes Jones from RBC Bank emphasized that the buybacks and the announced interim dividend of 15 cents per share for 2025 should be seen as positive signals. Despite a strong start to the trading day, AB Inbev shares lost a good one percent in the afternoon.
AB Inbev’s decision to buy back shares in a difficult market environment shows the company’s confidence in its long-term strategy. While demand for beer is declining worldwide, the group is relying on premium products and cost savings to secure its profitability. These measures could help AB Inbev strengthen its market position and successfully meet the challenges of the industry.
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