Beverage giant Anheuser-Busch InBev (NYSE:BUD) reported its third-quarter results this morning, and investors are cheering. As of 3:20 p.m. EDT, AB InBev shares remained up 9.2% after gaining almost 13% at the peak of the day.
The quarterly results from the brewer exceeded expectations and led the company to boost full-year guidance. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 3% year over year, and the company raised the low end of its EBITDA guidance range for the year. CEO Michel Doukeris told investors that the quarterly performance and continued momentum allowed the company to push its 2021 EBITDA growth outlook to a range of 10% to 12%, raising the low end from the previous 8%.
AB InBev said a combination of strength in both volume sales and price increases has helped fortify results. The maker of Stella Artois and Budweiser upgraded its guidance thanks partly to sales growth of more than 15% in Brazil. Volumes in both beer and non-beer offerings have increased by more than 11% over the most recent nine-month period. The company said beer volumes there reached all-time highs over a rolling 12-month basis, as it continued to recover from pandemic impacts.
The overall 8% growth in organic revenue should help the beverage giant pay down some debt, which has investors buying into the stock today. The debt level has been a concern for many investors, so seeing a strong quarter with top- and bottom-line growth ahead of pre-pandemic levels has tempered some of that worry today, resulting in a big move for the stock.