Anheuser-Busch InBev Earnings: Volume Stabilizes Despite Continued Price Increases

Although volume and revenue were slightly weaker than our forecasts, the level of price increases implemented by Anheuser-Busch InBev in the first quarter of the year kept the gross margin stable and the firm remains comfortably on track to meet our full-year forecasts. While negative publicity around the marketing of Bud Light in the U.S. is affecting sentiment in the stock, we regard this as temporary noise and we think this was a solid performance in the first quarter. We retain our $90 fair value estimate and wide moat rating.