Investors are watching to see if Anheuser-Busch InBev (BUD) recovers from last year's hangover.
The Bud Light maker is scheduled to report fourth-quarter and fiscal 2023 results after the market closes on Thursday. Shareholders are looking for signs that the beer giant remains in a precarious position with its drinkers, after reaching tentative agreements with the Teamsters union. Narrowly avoided a strike.
Street expects AB InBev to report fourth-quarter adjusted earnings per share of $0.81 on revenue of $15.66 billion, compared with $14.67 billion in Q4 2022. Quarterly sales volume is expected to decline 1.48% year-over-year.
For the full year, sales volume is expected to decline 1.34% compared to last year's 2.3% increase, as U.S. sales weighed down performance throughout 2023. Total revenue is expected to increase by 4.74%, while profit is expected to decrease by 0.41%. Over a year.
The report comes more than 10 months after a marketing campaign by transgender influencer Dylan Mulvaney sparked a widespread boycott of Bud Light. The brand then lost its spot as America's favorite beer to Modelo last May.
All eyes are on what 2024 will bring, as Anheuser-Busch also has to deal with changing consumer tastes, including a switch to imported Mexican beer.
Constellation Brands (STZ), which owns Modelo, Corona and Victoria, may already be winning there, according to Bank of America analyst Brian Spillane and others. Bump Williams of Bump Williams Consulting said Mexican brands are expected to move further forward.
“We’ve already seen retailers giving more shelf space to these brands in this segment in the second half of 2020,” Williams told Yahoo Finance. “We'll probably see that expand further as spring sets come out in March and April.” [2024]. ”
Against this backdrop, Anheuser-Busch reached a tentative agreement with the Teamsters on Wednesday night. The current contract is set to expire at midnight on February 29th, with 99% of its 5,000 members voting to leave if no deal is reached.
The five-year contract includes improved wages, health care and retirement benefits. U.S. CEO Brendan Whitworth said in a release that the company values the “talent, dedication and hard work” of its employees, while also “positioning the company for long-term success.” “
Teamsters General President Sean M. O'Brien said the members are “ready to do whatever it takes to reach a fair agreement.”
Rival Molson Coors (TAP) is currently on strike in the same union, but isolated to a single brewery in Fort Worth, Texas.
Although no deal has been reached, Molson Coors Chief Communications Officer Adam Collins told Yahoo Finance that the team has “robust contingency plans” to meet demand. The company still “brewed, packaged and shipped” its products at this location, along with other employees.
Collins added that the other five breweries have “extra capacity” and are stocking up ahead of time.
Collins said the team is “committed to reaching an agreement that is fair to everyone.”
But the Teamsters are hoping Molson Coors can take a page from its competitors.
“While the Teamsters continue to hold the line against Molson Coors in Texas for a fair contract, Molson Coors is one of the leaders in our nation's breweries today,” O'Brien said in a release. “We should be very careful about the standards we set for our workers.”
Revenue summary
Wall Street expects Anheuser-Busch InBev to report a fiscal fourth-quarter profit, according to Bloomberg consensus data.
Revenue: $15.66 billion
Adjusted EPS: $0.81
Increase in volume: -1.48%
Price increase: 7.83%
Wall Street expects Anheuser-Busch InBev to report for fiscal 2023, according to Bloomberg consensus data.
Revenue: $60.52 billion
Adjusted EPS: $3.02
Increase in volume: -1.34%
Price increase: 9.09%
*This story has been updated to reflect the tentative Teamsters agreement reached Wednesday night.
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Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter @brooke di palma Or email bdipalma@yahoofinance.com.
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