Investing.com -- US-listed shares in AB InBev (NYSE:BUD) rose in early trading after the world's largest brewer reported higher-than-anticipated second quarter core profit despite the impact from controversy in America surrounding its Bud Light brand.
Sales in Bud Light, one of the best-selling beers in the US, fell sharply after a marketing campaign with a transgender TikTok influencer led to calls for a boycott. The group's total US revenue subsequently slipped by 10.5% during the three-month period ended June 30, which it said was "primarily due to the volume decline of Bud Light."
North America represents a key market for AB InBev, making up around one-sixth of its total volumes sold last year. The Leuven, Belgium-based business noted that its US beer share has stabilized since the last week of April through the end of June, adding that a survey of 170,000 consumers found that 80% had a "favorable or neutral" opinion of the company.
The US slump was offset by strength in the company's operations in key countries like Brazil and China, which analysts at RBC (TSX:RY) Capital Markets called an "impressive demonstration" of AB InBev's resilience and diversification.
Quarterly organic earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 5.0%, topping estimates for slight growth of 0.4%. Normalized core earnings of $4.91 billion also beat consensus estimates of $4.86B.
AB InBev also reiterated its 2023 guidance for EBITDA growth of between 4% to 8%, in line with its medium-term target. Wall Street is forecasting an increase of 4.4%.
Belgium-listed shares in AB InBev (EBR:ABI) also jumped on Thursday, although the stock has been under pressure following the Bud Light marketing controversy.