Anheuser-Busch (BUD) posted worse-than-expected EBITDA and revenue for the fourth quarter, leading to a premarket share price drop of 1.8.%
The company posted underlying earnings per share (EPS) of $0.82 for the quarter, a slight decrease from $0.86 in Q4 2022, yet surpassing the anticipated $0.72.
EBITDA stood at $4.87 million, 6% below the consensus projection.
However, revenue of $14.5 billion fell short of the consensus estimates of $15.6 billion.
The company also noted a 17.3% drop in U.S. revenue during the fourth quarter, with a 12% decrease in sales to retailers.
There was a 2.6% decline in total volumes over the fourth quarter.
The gross margin was reported at 53.9%, marking a decrease of 49 basis points.
Looking ahead, Anheuser-Busch said it anticipates EBITDA growth to align with its medium-term projection of 4-8%.
It also forecasts its net capital expenditure for FY24 to be between $4.0 and $4.5 billion.
Commenting on the report, BofA analysts said:
“Q4 was expected to be a messy quarter on non-operational items, On balance it seems reassuring. Consensus downgrades seem unlikely.”
They also said the company’s organic EBITDA growth outlook was below the consensus of $8.7%. However, the two are not directly comparable as BUD’s guidance excludes much of Argentina's hyperinflation effects, while the consensus forecast includes all pricing.