The UK branch of Ab Inbev, known for producing popular beers, faced significant financial challenges in the last year.
Despite increasing the prices of its key products, the company has not turned a pre-tax profit since 2020.
In the recent financial year, Ab Inbev UK’s revenue increased from £1.59bn to £1.66bn. Despite this growth, the company reported a pre-tax loss of £72.1m, following losses of £89.5m in 2022 and £6.4m in 2021. The London-based division has not made a pre-tax profit since 2020, when it recorded a profit of £40.9m.
A statement from Ab Inbev’s board highlighted the impact of the UK economic environment on the business. The company faced significant challenges due to persistent inflation and high energy and food costs, which led to volatile input costs. Additionally, supply chain disruptions and shifts in consumer demand further complicated the situation.
The beer industry experienced a downturn compared to 2022. This was particularly noticeable in the off-trade sector, driven by increased consumer prices and government beer duty hikes.
Interestingly, the group’s profit grew from $6.89bn (£5.14bn) to $7.59bn (£5.66bn).
This shows a marginal improvement but still reflects the challenges faced by the UK division.
The increased prices have not been sufficient to offset the overall losses experienced.
Ab Inbev UK’s recent financial performance illustrates the complex challenges faced by the company despite efforts to increase prices.
With persistent economic hurdles and shifting consumer behaviour, the company has yet to see a reversal in its fortunes.
