Rising Costs Weigh On AB InBev Despite Higher Beer Sales

Volumes and profits also grew in its largest market, the United States, as its Michelob Ultra lager and hard seltzers offset a decline of mainstream brands to increase its share of national beer sales.

The Belgium-based company also reported growth in Mexico, Europe and China, but suffered declines in Colombia, where stay-at-home restrictions only eased in August, and South Africa, where alcohol sales were banned for a month.

Still, earnings before interest, tax, depreciation and amortisation only dipped by 0.8%, a far milder decline than the average forecast of a 9.3% drop in a company-compiled poll. EBITDA fell by a third in the second quarter.

The company said uncertainty and market volatility meant it would not pay an interim dividend this year after a payout of 0.80 euros per share in 2019.

Earlier this year, it also halved its final dividend for 2019 to 0.50 euros.

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