EXTRA: AB InBev shares surge as strong quarter fuels re-rating case

(Alliance News) - Anheuser-Busch InBev NV's share price rallied on Tuesday after a strong start to 2026, setting the stage for a potential analyst re-rating.

The owner of Corona and Stella Artois brands, which has a market capitalisation of EUR120.73 billion, reported on Tuesday it had boosted its profit to USD2.98 billion for the first quarter to March 31, up 17% from USD2.54 billion a year earlier.

Revenue, and normalised earnings before interest, tax, depreciation and amortisation also grew during the first three months of 2026 on the back of positive volumes. Total volumes inched up to 136.41 million hectolitres from 136.27 million.

Shares advanced in Tuesday's session. AB InBev rose 8.3% to ZAR1,345.67 in Johannesburg. In Brussels, AB InBev was up 9.3% at EUR69.04.

After 2026 first-quarter results, RBC raised share price target for AB InBev to EUR85 from EUR79, with an 'outperform' recommendation.

Jefferies analyst Edward Mundy said consistency of delivery and increasing cash returns should drive double-digit total shareholder return over the medium-term and a re-rating of AB InBev.

Jefferies rates share price target for AB InBev at EUR73, with a 'buy' recommendation.

AB InBev's earnings per share came "well ahead" of estimates. Basic EPS rose 20% to 1.30 US cents from 1.08 cents, while underlying EPS also rose 20% to 0.97 cents from 0.81 cents, a record high for the first quarter.

The first-quarter results come as AB InBev faces surging energy costs due to the ongoing Middle East conflict that started on February 28. The company pinned its hopes on its diversified footprint and global scale to weather the energy shock.

AB InBev sounded upbeat ahead of the 2026 Fifa World Cup, which will be hosted across North America in Canada, Mexico and the US from June 11 to July 19.

Gross margin, a measure of profit from its core products, improved in the first quarter to 56.6% from 55.6%.

The Leuven, Belgium-based beer maker on Tuesday routed record high first-quarter volumes in Mexico, Colombia, Brazil, South Africa and Peru, and said it had gained or maintained market share in 75% of markets.

In Europe, AB InBev continued recorded market share gains, with volumes growing by low-single digits.

But volumes in China declined 1.5%, but showed improvement sequentially from fourth quarter of 2025.

AB InBev quoted Circana as reporting that it was the number one share gainer in total alcohol.

On Tuesday, AB InBev said the momentum of its business continued to start the year, with broad-based volume growth.

"We are encouraged by our performance in the first quarter and, looking ahead, we are well positioned to activate the category in some of the biggest moments of celebration of the year, including the Fifa World Cup," the brewer said.

"Our consistent performance and the strength of the beer category reinforce our confidence in our ability to deliver our FY26 outlook and create a future with more cheers," AB InBev said.

Going forward, the Budweiser maker expects Ebitda to grow in line with its medium-term outlook of between 4% and 8%, as guided previously.

AB InBev said it actively managed debt portfolio, with manageable coupon and no relevant medium-term refinancing needs.

Chief Executive Officer Michel Doukeris said in a webcast with analysts the company is well positioned to deliver "superior value creation for our shareholders".

By Artwell Dlamini, Alliance News senior reporter South Africa

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