Anheuser-Busch InBev’s US sales tumbled more than 10% during the second quarter, buffeted by the row over Bud Light and transgender influencer Dylan Mulvaney.

However, a post-pandemic recovery in China helped group volumes, while improved profitability in Latin America contributed to the world’s largest brewer maintaining its forecast for a closely-watched profitability metric.

Shares in AB InBev rose in early trading today (3 August).

The Michelob brand owner’s revenue in the US dropped 10.5% in the three months to the end of June. Revenue per hectolitre was up 5.2% thanks to “revenue management initiatives”.

However, sales to US wholesalers were down 10.5% and sales to retailers slid 14%, which AB InBev said was “primarily due to the volume decline of Bud Light”. The EBITDA the brewer generated in the US fell more than 28%.

Group-wide revenue increased 7.3% to €14.79bn ($16.17bn). On an organic basis, revenue grew 7.2%. Revenue per hectolitre was up 9%.

AB InBev called out revenue gains in Mexico, Colombia, Brazil, Europe, South Africa and China.

That said, it was only the Stella Artois brewer’s “Middle Americas” and Asia-Pacific unit that grew volumes in the quarter year on year.

Volumes in Asia-Pacific were up 9.5% thanks in part to an 11% increase in China.

“Normalised” EBIT increased 2.2% to €3.81bn, AB InBev said, while its normalised EBITDA grew 5% to €5.1bn.

“Our business delivered another quarter of profitable growth,” CEO Michel Doukeris said.

Underlying profit attributable to equity holders of AB InBev stood at €1.47bn, versus €1.46bn in the second quarter of 2022.

“This is a strong set of results, especially on EBITDA/margins, excluding the US. AB InBev reiterated their guidance of 4-8% EBITDA growth in 2023, in line with the medium-term targets, while some investors had expected a downgrade following the Bud Light saga,” analysts at AllianceBernstein wrote in a note to clients.

Anheuser-Busch shares were up 3.82% at €53.01 at 13:31 CEST today.