LONDON (Reuters) -Belgian brewer Anheuser-Busch InBev posted on Thursday third-quarter profit well ahead of expectations thanks to tight cost control, reinstated its interim dividend and launched a $6 billion share buyback over two years.
The world's top brewer by market value reported a 3.3% rise in organic operating profit in the three months to September 30, beating expectations for a 0.9% rise. But it was still the lowest quarterly profit growth since 2021 for the maker of Stella Artois and Corona,
as it grapples with flagging sales and currency volatility.
"Our business delivered continued top- and bottom-line growth even as we navigated a dynamic consumer environment," CEO Michel Doukeris said, adding cost management had helped it offset foreign exchange impact.
AB InBev had on average been expected to unveil a year-long $2 billion buyback, analysts said in notes ahead of its third-quarter results, though some individually forecast a much larger programme as the company cuts debt and builds free cash.
AB InBev has been slowly building returns to shareholders as it reduces leverage built up over years of major acquisitions. On Thursday, it announced an interim dividend of 15 cents per share, its first interim dividend since 2019.
The move comes despite a difficult quarter for beer and liquor makers, with weak demand in key markets across the globe compounding years of low sales.
No.2 brewer Heineken warned this month it would sell less beer again in 2025 as economic challenges worsened, with a poor showing in Latin America and Europe in particular.
AB InBev's volumes fell 3.7% in the third quarter, slightly worse than anticipated. It endured steep declines in Brazil, citing weather and a "soft" environment. In China, its sales underperformed rivals again, it said.
In the U.S., where it suffered in recent years after a boycott of key brand Bud Light, AB InBev said another label, Michelob Ultra, had become the number one brand in the industry by volumes for the year to date.
AB InBev's revenue also fell behind expectations in the quarter, growing 0.9% versus estimates of 1.2%.
(Reporting by Emma Rumney; Editing by Himani Sarkar, Muralikumar Anantharaman and Jamie Freed)
