Anheuser-Busch Inbev ( BUD ) shares traded lower in the premarket session on Thursday.

The Budweiser maker reported second-quarter adjusted earnings per share of 98 cents, beating the analyst consensus estimate of 97 cents.

Quarterly sales of $15.004 billion missed the Street view of $15.380 billion. Revenue increased by 3.0% in the quarter.

The company saw a 5.6% increase in combined revenues of megabrands, led by Corona, which grew by 7.7% outside of its home market in the second quarter of 2025.

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Volumes declined by 1.9% in the quarter under review, with beer volumes down by 2.2% and non-beer volumes up by 0.3%.

“While the operating environment remains dynamic, the consistent execution of our strategy by our teams and partners drove a solid first half of the year and reinforces our confidence in delivering on our outlook for 2025,” said CEO Michel Doukeris.

Soft industries and performance in China and Brazil impacted volumes. Overall volumes were below potential, underlying momentum continued in the remainder of the company’s footprint, with volume growth of 0.7% outside of these two countries.

Gross profit in the second quarter decreased to $8.446 billion, down from $8.567 billion a year ago. Gross margin, however, expanded to 56.3% from 55.9% in the year-ago period.

Normalized EBITDA increased by 6.5% to $5.301 billion in the second quarter, with a margin expansion of 116bps to 35.3%.

The company exited the quarter with cash and equivalents worth $7.167 billion, lower than the $11.174 billion at the end of December 31, 2024.

Meanwhile, the beer industry is grappling with a steeper challenge. U.S. beer producers face a 50% tariff on aluminum imports, a development that is likely to increase packaging costs.

AB InBev, which manufactures 98% of its cans domestically, acknowledged the potential impact of the tariffs in May, underscoring the broader cost pressures facing the industry, according to CNBC.

Outlook: AB InBev expects FY25 EBITDA to grow between 4% and 8%, despite inflationary and macroeconomic headwinds, and projects net capital expenditure in the range of $3.5 billion to $4 billion.

The company anticipates quarterly finance costs of $190 million to $220 million in FY25, with an estimated effective tax rate of 26% to 28%.

Price Action: BUD shares were trading lower by 10.8% to $59.23 premarket at last check Thursday.

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