Corona Sales Soar As Ab Inbev Beats Expectations, Sending Its Stock Higher

Beer drinkers are buying more Corona.

AB InBev

• Anheuser-Busch InBev's stock surged after posting better-than-expected fourth-quarter results.
• Revenue rose 3.4% in the fourth quarter, beating analyst forecasts of a 2.9% decline.
• AB InBev stock soared close to 9% in Brussels and is up about 17% this year.

Drinks maker Anheuser-Busch InBev's stock jumped on Wednesday after the brewing giant announced better-than-expected fourth-quarter results, driven by higher sales of premium products including Corona beer.

While sales volumes declined 1.4% over the year and 1.9% in the fourth quarter, revenue climbed 3.4% to $14.84 billion in the fourth quarter, far better than the 2.9% decline predicted by LSEG analysts. Full-year revenue was up 2.7% to $59.77 billion, and EBITDA rose 8.2%.

AB InBev stock rose close to 9% in Brussels on Wednesday at about 56 euros, bringing the increase this year to almost 17%.

Analysts at UBS said the company delivered "another quarter of strong margin expansion" and beat expectations on EBITDA. They maintained a "buy" rating on the stock with a price target of 66 euros.

The Belgium-headquartered firm — which owns brands including Budweiser and Stella Artois — said Corona led its performance, with double-digit volume growth in more than 30 markets.

Corona Cero, the zero-alcohol version of the beer, also had a strong year, with triple-digit volume growth in 2024, AB InBev said Wednesday.

2024 was a good year for alcohol-free beer alternatives in general.

Diageo said that net sales of its Guinness 0.0 drink more than doubled in Europe in fiscal year 2024, while Heineken's chief financial officer, Harold van den Broek, announced in October that the firm's nonalcoholic options had grown to more than 4% of its total portfolio.

Dollar strength

The company attributed lower sales volumes to weak demand in China and Argentina, which CEO Michel Doukeris told CNBC was "very abnormal."

The company's major concern this year was not tariffs but foreign exchange due to the strong dollar, he said.

"There is always secondary impacts, but we are watching this, the developments, and we are prepared to use other levers that we have to offset costs if we have any," he said.

The world's largest brewer struggled at the beginning of the pandemic, estimating it took a $170 million hit to profits at the start of 2020.

AB InBev said at the time that it trusted customers not to associate the name of the Corona brand with the coronavirus after online searches for "corona beer virus" reportedly spiked at the time.