American depositary receipts (ADRs) of AB InBev (BUD) slumped 5% Thursday morning as the world's biggest beermaker missed sales estimates on a surprise drop in beer volumes.

The maker of brands including Budweiser and Stella Artois reported third-quarter organic revenue growth of 2.1% year-over-year to $15.05 billion, below consensus expectations of $15.57 billion of analysts surveyed by Visible Alpha. Underlying earnings per share (EPS) of $0.98 was above forecasts.  

Total volumes declined 2.4%, while estimates were for a gain of 0.11%. Beer volumes slid 3.1%. Non-beer volumes were up 0.6%.

The company said revenue was boosted by its "megabrands," which posted a 3.1% gain. Those were led by Corona's 10.2% jump outside of its home market.

US Sales Advance for First Time Since Bud Light Boycott

Sales in the U.S. advanced 1.8%, the first year-over-year increase since the first quarter of 2023, as AB InBev was hit by a boycott of its Bud Light brand related to the company’s relationship with transgender influencer Dylan Mulvaney. The protest led to Bud Light's losing its title as the best-selling beer in the U.S. to Constellation Brand's (STZ) Modelo Especial. 

The brewer’s board approved a $2 billion stock buyback program to be executed over the next 12 months. 

Including today's drop, AB InBev ADRs have lost about 8% of their value this year.