Anheuser-Busch InBev (NYSE:BUD), the world’s biggest brewing firm, on Tuesday beat expectations for the third quarter, despite an ongoing drag from controversy surrounding its online Bud Light campaign.
Revenue rose 5% over the period to $15.57 billion, ahead of a company-compiled forecast of 4.7%. That was despite volumes falling 3.4%, with growth in the Middle East, Africa and Asia-Pacific offset by a “soft” performance in Europe and weak U.S. sales.
The company’s Brussels-listed shares gained 3.5% in early trade as investors cheered the announcement of a $1 billion share buyback to be executed over the next 12 months. The company also announced it had approved a cash tender offer for up to $3 billion outstanding bonds as part of its “focus on deleveraging.”
However, Bud Light — which lost its spot as the top-selling U.S. beer over the summer amid a conservative-led boycott, protesting its partnership with transgender influencer Dylan Mulvaney — weighed on U.S. performance, the company said.
Revenue in the U.S. dropped 13.5%, while earnings before interest, taxes, depreciation, and amortization (EBITDA) in the country plunged 29.3% due to “market share performance,” along with productivity loss and higher marketing spend.
It marks the second quarter in which the Bud Light controversy, which includes criticism of the company for failing to support Mulvaney amid the backlash, has hit U.S. sales.
BUD shares $1.87, or 3.4%, to $55.87.