UK: AB InBev’s UK division accumulates losses approaching £200m

The UK division of AB InBev, the brewing behemoth responsible for brands including Budweiser, Stella Artois and Corona, has now accumulated losses approaching £200m since its last pre-tax profit, following continued red ink in 2024, new filings have disclosed.

The London-based operation recorded a pre-tax loss of £20.9m for its most recent financial year, representing a substantial improvement from the £72.1m deficit posted in 2023, as reported by City AM.

Nevertheless, the latest results mean AB InBev's cumulative pre-tax losses since achieving its last profit of £40.9m in 2020 have now exceeded £188m.

The company also registered losses of £6.4m in 2021 and £89.5m in 2022.

Despite this, fresh accounts lodged with Companies House reveal the firm's turnover rose in 2024 from £1.66bn to £1.67bn.

A statement endorsed by the board declared: "The UK economic environment in 2024 showed signs of recovery, with inflation easing and consumer confidence gradually improving.

"While challenges remained, particularly in managing costs and adapting to evolving consumer behaviours, the overall market conditions were more stable than in 2023.

"This enabled more consistent supply chain operations and allowed for more strategic pricing and promotional activity.

"The beer industry declined in 2024, with both the off-trade and the on-trade sector declining low single digits (in line with longer term trends, prior to the volatility caused by the pandemic).

"Consumer interest in premium and super-premium offerings continued to rise, driven by a shift toward quality, experience and sustainability."

AB InBev added: "Looking ahead to 2025, we are optimistic about continued economic stabilisation and growth in the beer category."

The figures for the group's UK arm emerge following a decline in AB InBev's share price at the end of July, after the company disclosed that second quarter sales volumes had fallen more sharply than anticipated due to softer demand in Brazil and China.