Anheuser-Busch reports higher-than-expected earnings in Q3
- The company saw 5% revenue growth in the past quarter
- Bud Light sales dropped in the U.S. over a controversial partnership
- Growth in the Middle East, Africa and Asia-Pacific made up for U.S. sales
Cans of Bud Light chill in a refrigerator in Oakland, Calif., Friday, April 28, 2023. After more than two decades as America’s best-selling beer, Bud Light has slipped into second place. Modelo Especial, a Mexican lager, overtook Bud Light in U.S. retail dollar sales in the month ending June 3. (AP Photo/Jeff Chiu)
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(NewsNation) — Anheuser-Busch saw better performance in Q3 of 2023 despite still struggling in the U.S. after controversy surrounding Bud Light’s brief partnership with a transgender influencer.
The company reported revenue growth of 5%, more than was previously forecasted. Growth in the Middle East, Africa and Asia-Pacific helped grow revenue even as the brand experienced weaker sales in the U.S.
U.S. sales of Bud Light dropped after conservatives led a boycott over the beer’s partnership with transgender influencer Dylan Mulvaney and support of LGBTQ+ Pride events.
The company backed off the partnership in response to the outcry, prompting calls for a boycott from LGBTQ+ groups disappointed in the response.
Revenue in the U.S. dropped 13.5%, and earnings dipped 29.3% due to the brand’s performance, productivity loss and higher marketing spending.
The company did see a 3.5% gain in early shares trading after it announced a $1 billion share buyback that will take place over the next 12 months.