Anheuser-Busch ($BUD) Reports Better-Than-Expected Sales In Q1

Anheuser-Busch InBev (NYSE:BUD) reported Q1 CY2024 results that exceeded analysts' expectations, with revenue up 2.3% year on year to $14.55 billion. The company made a GAAP profit of $0.54 per share, down from its $0.81 per share in the same quarter last year. Brand strength, marketing strategies, and shifts in consumer preferences influence the company's performance. Companies that invest in innovation to meet consumers where they are can reap huge demand benefits, while those who ignore trends can see stagnant volumes.

Anheuser-Busch ( BUD ) is one of the most widely recognized consumer staples companies in the world, giving it extremely high negotiating leverage with distributors. Its annualized revenue growth rate of 7.4% over the last three years was decent despite selling a similar number of units each year. This quarter, Anheuser-Busch ( BUD ) reported decent year-on-year revenue growth of 2.3%, and its $14.55 billion in revenue topped Wall Street's estimates by 1.3%.

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Volume growth can be broken down into changes in price and volume (the number of units sold). Volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. To analyze whether Anheuser-Busch ( BUD ) generated its growth from changes in price or volume, we can compare its volume growth to its organic revenue growth, which excludes non-fundamental impacts on company financials like mergers and currency fluctuations.

In Anheuser-Busch's Q1 2024, year-on-year sales volumes were flat, which was more or less in line with the same quarter last year. Key takeaways from Anheuser-Busch's Q1 Results include beating analysts' adjusted EBITDA and EPS expectations this quarter, and its revenue outperforming Wall Street's estimates. The stock is up 4.7% after reporting and currently trades at $63.42 per share.