BRUSSELS--(BUSINESS WIRE)--Anheuser-Busch InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):
Regulated and inside information1
“Beer is a passion point for consumers. Consumer demand for our megabrands and the execution of our mega platforms delivered another quarter of top- and bottom-line growth with margin expansion. Our teams and partners continue to execute our strategy and we are confident in our ability to deliver on our raised FY24 EBITDA growth outlook of 6-8%.”
– Michel Doukeris, CEO, AB InBev
Total Revenue + 2.1% Revenue increased by 2.1% in 3Q24 with revenue per hl growth of 4.6% and by 2.5% in 9M24 with revenue per hl growth of 3.9%.
3.1% increase in combined revenues of our megabrands, led by Corona, which grew by 10.2% outside of its home market in 3Q24.
72% of our revenue is through B2B digital platforms with the monthly active user base of BEES reaching 3.9 million users in 3Q24.
Approximately 140 million USD of revenue generated by our digital direct-to-consumer ecosystem in 3Q24.
Total Volume - 2.4% In 3Q24, total volumes declined by 2.4%, with own beer volumes down by 3.1% and non-beer volumes up by 0.6%. In 9M24, total volumes declined by 1.3% with own beer volumes down by 1.9% and non-beer volumes up by 2.5%.
| Normalized EBITDA + 7.1% In 3Q24, normalized EBITDA increased by 7.1% to 5 424 million USD with a normalized EBITDA margin expansion of 169bps to 36.0%. In 9M24, normalized EBITDA increased by 7.6% to 15 712 million USD with a normalized EBITDA margin expansion of 166bps to 35.0%.
Underlying Profit 1 971 million USD Underlying profit (profit attributable to equity holders of AB InBev excluding non-underlying items and the impact of hyperinflation) was 1 971 million USD in 3Q24 compared to 1 735 million USD in 3Q23 and was 5 291 million USD in 9M24 compared to 4 497 million USD in 9M23.
Underlying EPS 0.98 USD Underlying EPS was 0.98 USD in 3Q24, an increase from 0.86 USD in 3Q23 and was 2.64 USD in 9M24, an increase from 2.23 USD in 9M23. |
Capital Allocation 2 billion USD Share buyback program The AB InBev Board of Directors has approved a 2 billion USD share buyback program to be executed within the next 12 months. For further details please see the Recent Events section on page 14. |
1The enclosed information constitutes inside information as defined in Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, and regulated information as defined in the Belgian Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market. For important disclaimers and notes on the basis of preparation, please refer to page 15. |
Management comments
Diversified global footprint and consistent execution of our strategy delivered an EBITDA increase of 7.1% and Underlying EPS growth of 14%
Top-line increased by 2.1%, with revenue growth in more than 60% of our markets, driven by a revenue per hl increase of 4.6% as a result of revenue management initiatives and ongoing premiumization. We estimate we gained or maintained market share in 60% of our markets with volumes increasing in 50% of them. Overall volume performance was however impacted by a soft consumer environment in China and Argentina, resulting in an overall decline of 2.4%. EBITDA increased by 7.1% with production cost efficiencies and disciplined overhead management driving EBITDA margin expansion of 169bps. Underlying EPS was 0.98 USD, a 14% increase versus 3Q23, driven by nominal EBIT growth and continued optimization of our net finance costs.
Progressing our strategic priorities
We continue to execute on and invest in three key strategic pillars to deliver consistent growth and long-term value creation.
(1) Lead and grow the category:
We estimate we gained or maintained market share in 60% of our markets this quarter, with continued investment in our brands driving an increase in overall portfolio brand power.
(2) Digitize and monetize our ecosystem:
BEES captured 12.1 billion USD of gross merchandise value (GMV), a 14% increase versus 3Q23 with 72% of our revenue through B2B digital channels. BEES Marketplace captured 630 million USD in GMV from sales of third-party products, a 51% increase versus 3Q23.
(3) Optimize our business:
Underlying EPS increased by 14% to reach 0.98 USD, driven by nominal EBIT growth, continued margin expansion and optimization of our net finance costs. With increased flexibility in our capital allocation choices, the AB InBev Board of Directors has approved a 2 billion USD share buyback program to be executed within the next 12 months.
(1) Lead and grow the category
We are executing on our five replicable levers to drive category expansion. Our performance across each of the levers was led by our megabrands which delivered a 3.1% revenue increase in 3Q24.
(2) Digitize and monetize our ecosystem
(3) Optimize our business
Creating a future with more cheers
Our business delivered another quarter of profitable growth with an EBITDA increase of 7.1%. Net revenue per hl growth, an increase in nominal EBIT and the continued optimization of our business resulted in double-digit growth in Underlying EPS in both 3Q24 and 9M24. Our performance is a testament to the strength of the beer category, our diversified global footprint and the continued dedication and hard work of our people. The beer category is large and growing, and our unique global leadership advantages, replicable growth drivers and superior profitability position us well to deliver on our purpose to create a future with more cheers.
2024 Outlook
Figure 1. Consolidated performance (million USD) | ||||||
3Q23 | 3Q24 | Organic | ||||
growth | ||||||
Total Volumes (thousand hls) | 151 891 | 148 039 | -2.4% | |||
AB InBev own beer | 132 325 | 128 124 | -3.1% | |||
Non-beer volumes | 18 589 | 18 691 | 0.6% | |||
Third party products | 977 | 1 223 | 25.2% | |||
Revenue | 15 574 | 15 046 | 2.1% | |||
Gross profit | 8 394 | 8 366 | 5.6% | |||
Gross margin | 53.9% | 55.6% | 183bps | |||
Normalized EBITDA | 5 431 | 5 424 | 7.1% | |||
Normalized EBITDA margin | 34.9% | 36.0% | 169bps | |||
Normalized EBIT | 4 027 | 4 091 | 8.9% | |||
Normalized EBIT margin | 25.9% | 27.2% | 171bps | |||
| ||||||
Profit attributable to equity holders of AB InBev | 1 472 | 2 071 | ||||
Underlying profit attributable to equity holders of AB InBev | 1 735 | 1 971 | ||||
| ||||||
Earnings per share (USD) | 0.73 | 1.03 | ||||
Underlying earnings per share (USD) | 0.86 | 0.98 |
| |||
9M23 | 9M24 | Organic | ||||
growth | ||||||
Total Volumes (thousand hls) | 440 021 | 433 877 | -1.3% | |||
AB InBev own beer | 382 135 | 374 438 | -1.9% | |||
Non-beer volumes | 54 812 | 56 157 | 2.5% | |||
Third party products | 3 075 | 3 282 | 6.7% | |||
Revenue | 44 907 | 44 927 | 2.5% | |||
Gross profit | 24 190 | 24 827 | 5.1% | |||
Gross margin | 53.9% | 55.3% | 140bps | |||
Normalized EBITDA | 15 099 | 15 712 | 7.6% | |||
Normalized EBITDA margin | 33.6% | 35.0% | 166bps | |||
Normalized EBIT | 11 099 | 11 638 | 8.6% | |||
Normalized EBIT margin | 24.7% | 25.9% | 147bps | |||
| ||||||
Profit attributable to equity holders of AB InBev | 3 450 | 4 635 | ||||
Underlying profit attributable to equity holders of AB InBev | 4 497 | 5 291 | ||||
| ||||||
Earnings per share (USD) | 1.71 | 2.31 | ||||
Underlying earnings per share (USD) | 2.23 | 2.64 |
|
Figure 2. Volumes (thousand hls) | ||||||||||||
3Q23 | Scope | Organic | 3Q24 | Organic growth | ||||||||
growth | Total | Own beer | ||||||||||
North America | 23 007 | -159 | -83 | 22 764 | -0.4% | 0.0% | ||||||
Middle Americas | 37 931 | -4 | - 819 | 37 107 | -2.2% | -1.7% | ||||||
South America | 39 733 | - | - 231 | 39 502 | -0.6% | -1.6% | ||||||
EMEA | 23 407 | - | 632 | 24 039 | 2.7% | 0.9% | ||||||
Asia Pacific | 27 672 | - | -3 158 | 24 514 | -11.4% | -11.5% | ||||||
Global Export and Holding Companies | 141 | - | -29 | 112 | -20.5% | -49.4% | ||||||
AB InBev Worldwide | 151 891 | - 163 | -3 688 | 148 039 | -2.4% | -3.1% |
9M23 | Scope | Organic | 9M24 | Organic growth | ||||||||
growth | Total | Own beer | ||||||||||
North America | 70 401 | -470 | -3 175 | 66 756 | -4.5% | -5.1% | ||||||
Middle Americas | 110 095 | -13 | 1 097 | 111 179 | 1.0% | 1.4% | ||||||
South America | 115 756 | - | 61 | 115 818 | 0.1% | -1.0% | ||||||
EMEA | 66 249 | - | 2 672 | 68 921 | 4.0% | 3.1% | ||||||
Asia Pacific | 77 261 | - | -6 303 | 70 958 | -8.2% | -8.1% | ||||||
Global Export and Holding Companies | 259 | - | -14 | 244 | -5.6% | 1.3% | ||||||
AB InBev Worldwide | 440 021 | - 484 | -5 661 | 433 877 | -1.3% | -1.9% |
United States: Improved market share trend and productivity initiatives delivered low-single digit top-line and double-digit bottom-line growth
Mexico: Market share gain with margin expansion
Colombia: Double-digit bottom-line growth with margin expansion
Brazil: Double-digit bottom-line growth with margin expansion
Europe: Continued premiumization with margin recovery
South Africa: Continued momentum delivered double digit top- and bottom-line growth with margin expansion
China: Revenue declined by double-digits, impacted by soft industry
Highlights from our other markets
Consolidated Income Statement
Figure 3. Consolidated income statement (million USD) | ||||||
3Q23 | 3Q24 | Organic | ||||
growth | ||||||
Revenue | 15 574 | 15 046 | 2.1% | |||
Cost of sales | -7 180 | -6 680 | 2.0% | |||
Gross profit | 8 394 | 8 366 | 5.6% | |||
SG&A | -4 583 | -4 490 | -2.7% | |||
Other operating income/(expenses) | 217 | 215 | 5.6% | |||
Normalized profit from operations (normalized EBIT) | 4 027 | 4 091 | 8.9% | |||
Non-underlying items above EBIT (incl. impairment losses) | -352 | -125 | ||||
Net finance income/(cost) | -1 223 | -1 043 | ||||
Non-underlying net finance income/(cost) | 84 | 236 | ||||
Share of results of associates | 95 | 89 | ||||
Income tax expense | -666 | -758 | ||||
Profit | 1 966 | 2 489 | ||||
Profit attributable to non-controlling interest | 494 | 418 | ||||
Profit attributable to equity holders of AB InBev | 1 472 | 2 071 | ||||
| ||||||
Normalized EBITDA | 5 431 | 5 424 | 7.1% | |||
Underlying profit attributable to equity holders of AB InBev | 1 735 | 1 971 | ||||
. | ||||||
9M23 | 9M24 | Organic | ||||
growth | ||||||
Revenue | 44 907 | 44 927 | 2.5% | |||
Cost of sales | -20 717 | -20 100 | 0.6% | |||
Gross profit | 24 190 | 24 827 | 5.1% | |||
SG&A | -13 635 | -13 738 | -2.2% | |||
Other operating income/(expenses) | 544 | 548 | 0.4% | |||
Normalized profit from operations (normalized EBIT) | 11 099 | 11 638 | 8.6% | |||
Non-underlying items above EBIT (incl. impairment losses) | -458 | -244 | ||||
Net finance income/(cost) | -3 743 | -3 400 | ||||
Non-underlying net finance income/(cost) | -619 | -294 | ||||
Share of results of associates | 201 | 226 | ||||
Non-underlying share of results of associates | - | 104 | ||||
Income tax expense | -1 858 | -2 304 | ||||
Profit | 4 621 | 5 725 | ||||
Profit attributable to non-controlling interest | 1 171 | 1 090 | ||||
Profit attributable to equity holders of AB InBev | 3 450 | 4 635 | ||||
| ||||||
Normalized EBITDA | 15 099 | 15 712 | 7.6% | |||
Underlying profit attributable to equity holders of AB InBev | 4 497 | 5 291 |
Non-underlying items above EBIT & Non-underlying share of results of associates
Figure 4. Non-underlying items above EBIT & Non-underlying share of results of associates (million USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Restructuring | -28 | -38 | -78 | -97 | ||||
Business and asset disposal (incl. impairment losses) | -324 | -87 | -361 | -147 | ||||
Claims and legal costs | - | - | -19 | - | ||||
Non-underlying items in EBIT | -352 | -125 | -458 | -244 | ||||
Non-underlying share of results of associates | - | - | - | 104 |
Non-underlying share of results from associates of 9M24 includes the impact from our associate Anadolu Efes’ adoption of IAS 29 hyperinflation accounting on their 2023 results.
Net finance income/(cost)
Figure 5. Net finance income/(cost) (million USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Net interest expense | -789 | -719 | -2 419 | -2 179 | ||||
Net interest on net defined benefit liabilities | -22 | -22 | -64 | -67 | ||||
Accretion expense | -194 | -163 | -579 | -545 | ||||
Net interest income on Brazilian tax credits | 29 | 34 | 107 | 95 | ||||
Other financial results | -247 | -173 | -787 | -704 | ||||
Net finance income/(cost) | -1 223 | -1 043 | -3 743 | -3 400 |
Non-underlying net finance income/(cost)
Figure 6. Non-underlying net finance income/(cost) (million USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Mark-to-market | 84 | 236 | -619 | -271 | ||||
Gain/(loss) on bond redemption and other | - | - | - | -23 | ||||
Non-underlying net finance income/(cost) | 84 | 236 | -619 | -294 |
Non-underlying net finance cost in 9M24 includes mark-to-market losses on derivative instruments entered into in order to hedge our share-based payment programs and shares issued in relation to the combination with Grupo Modelo and SAB.
The number of shares covered by the hedging of our share-based payment program, the deferred share instrument and the restricted shares are shown in figure 7, together with the opening and closing share prices.
Figure 7. Non-underlying equity derivative instruments | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Share price at the start of the period (Euro) | 51.83 | 54.12 | 56.27 | 58.42 | ||||
Share price at the end of the period (Euro) | 52.51 | 59.38 | 52.51 | 59.38 | ||||
Number of equity derivative instruments at the end of the period (millions) | 100.5 | 100.5 | 100.5 | 100.5 |
Income tax expense
Figure 8. Income tax expense (million USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Income tax expense | 666 | 758 | 1 858 | 2 304 | ||||
Effective tax rate | 26.3% | 24.0% | 29.6% | 29.9% | ||||
Normalized effective tax rate | 25.2% | 25.5% | 26.5% | 26.6% |
The 3Q23 and 3Q24 effective tax rates were positively impacted by non-taxable gains from derivatives related to the hedging of share-based payment programs and of the shares issued in a transaction related to the combination with Grupo Modelo and SAB.
Furthermore, the 9M24 effective tax rate includes 114 million USD of non-underlying tax expenses, reflecting mainly the impact of a 240 million USD (4.5 billion ZAR) non-underlying tax cost following the resolution of the South African tax matters as described in note 21 Contingencies of the HY24 Unaudited Interim Report and the release of tax provisions.
Figure 9. Underlying Profit attributable to equity holders of AB InBev (million USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Profit attributable to equity holders of AB InBev | 1 472 | 2 071 | 3 450 | 4 635 | ||||
Net impact of non-underlying items on profit | 224 | -133 | 973 | 542 | ||||
Hyperinflation impacts in underlying profit | 39 | 33 | 74 | 114 | ||||
Underlying profit attributable to equity holders of AB InBev | 1 735 | 1 971 | 4 497 | 5 291 |
Basic and underlying EPS
Figure 10. Earnings per share (USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Basic EPS | 0.73 | 1.03 | 1.71 | 2.31 | ||||
Net impact of non-underlying items on profit | 0.11 | -0.07 | 0.48 | 0.27 | ||||
Hyperinflation impacts in EPS | 0.02 | 0.02 | 0.04 | 0.06 | ||||
Underlying EPS | 0.86 | 0.98 | 2.23 | 2.64 | ||||
Weighted average number of ordinary and restricted shares (million) | 2 016 | 2 004 | 2 016 | 2 004 |
Figure 11. Key components - Underlying EPS in USD | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Normalized EBIT before hyperinflation | 2.02 | 2.06 | 5.56 | 5.84 | ||||
Hyperinflation impacts in normalized EBIT | -0.03 | -0.02 | -0.06 | -0.04 | ||||
Normalized EBIT | 2.00 | 2.04 | 5.51 | 5.81 | ||||
Net finance cost | -0.61 | -0.52 | -1.86 | -1.70 | ||||
Income tax expense | -0.35 | -0.39 | -0.97 | -1.09 | ||||
Associates & non-controlling interest | -0.20 | -0.17 | -0.49 | -0.43 | ||||
Hyperinflation impacts in EPS | 0.02 | 0.02 | 0.04 | 0.06 | ||||
Underlying EPS | 0.86 | 0.98 | 2.23 | 2.64 | ||||
Weighted average number of ordinary and restricted shares (million) | 2 016 | 2 004 | 2 016 | 2 004 |
Reconciliation between normalized EBITDA and profit attributable to equity holders
Figure 12. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD) | ||||||||
3Q23 | 3Q24 | 9M23 | 9M24 | |||||
Profit attributable to equity holders of AB InBev | 1 472 | 2 071 | 3 450 | 4 635 | ||||
Non-controlling interests | 494 | 418 | 1 171 | 1 090 | ||||
Profit | 1 966 | 2 489 | 4 621 | 5 725 | ||||
Income tax expense | 666 | 758 | 1 858 | 2 304 | ||||
Share of result of associates | -95 | -89 | -201 | -226 | ||||
Non-underlying share of results of associates | - | - | - | - 104 | ||||
Net finance (income)/cost | 1 223 | 1 043 | 3 743 | 3 400 | ||||
Non-underlying net finance (income)/cost | -84 | -236 | 619 | 294 | ||||
Non-underlying items above EBIT (incl. impairment losses) | 352 | 125 | 458 | 244 | ||||
Normalized EBIT | 4 027 | 4 091 | 11 099 | 11 638 | ||||
Depreciation, amortization and impairment | 1 403 | 1 333 | 3 999 | 4 074 | ||||
Normalized EBITDA | 5 431 | 5 424 | 15 099 | 15 712 |
Normalized EBITDA and normalized EBIT are measures utilized by AB InBev to demonstrate the company’s underlying performance.
Normalized EBITDA is calculated excluding the following effects from profit attributable to equity holders of AB InBev: (i) non-controlling interest; (ii) income tax expense; (iii) share of results of associates; (iv) non-underlying share of results of associates; (v) net finance income or cost; (vi) non-underlying net finance income or cost; (vii) non-underlying items above EBIT; and (viii) depreciation, amortization and impairment.
Normalized EBITDA and normalized EBIT are not accounting measures under IFRS and should not be considered as an alternative to profit attributable to equity holders as a measure of operational performance, or an alternative to cash flow as a measure of liquidity. Normalized EBITDA and normalized EBIT do not have a standard calculation method and AB InBev’s definition of normalized EBITDA and normalized EBIT may not be comparable to that of other companies.
Recent Events
Announcement of 2 Billion USD share buyback program to be executed within the next 12 months
On 30 October 2024, the AB InBev Board of Directors approved a 2 billion USD share buyback program to be executed within the next 12 months. Based on the closing price of AB InBev’s ordinary shares on the Euronext Brussels on 30 October, this amount represented approximately 31.7 million shares. Such number of shares will fluctuate depending on share price movements. The share buyback program will be implemented in accordance with industry best practices and in compliance with the applicable buyback rules and regulations. To this end, an independent financial intermediary will be appointed to repurchase on the basis of a discretionary mandate. The precise timing of the repurchase of shares pursuant to the program will depend on a variety of factors including market conditions. During the share buyback program, the company will regularly publish press releases with updates on the progress made (if any) as required by law. This information will also be available on the investor relations pages of our website under the return of capital program section (https://www.ab-inbev.com/investors/share-information/return-of-capital-program). Our current intention is to hold the shares acquired as treasury shares to fulfil future share delivery commitments under the stock ownership plans. The program will be executed under the powers granted at the General Meeting of Shareholders on 28 April 2021.
Notes
To facilitate the understanding of AB InBev’s underlying performance, the analyses of growth, including all comments in this press release, unless otherwise indicated, are based on organic growth and normalized numbers. In other words, financials are analyzed eliminating the impact of changes in currencies on translation of foreign operations, and scope changes. For FY24, the definition of organic revenue growth has been amended to cap the price growth in Argentina to a maximum of 2% per month (26.8% year-over-year). Corresponding adjustments are made to all income statement related items in the organic growth calculations through scope changes. Scope changes also represent the impact of acquisitions and divestitures, the start or termination of activities or the transfer of activities between segments, curtailment gains and losses and year over year changes in accounting estimates and other assumptions that management does not consider as part of the underlying performance of the business. The organic growth of our global brands, Budweiser, Stella Artois, Corona and Michelob Ultra, excludes exports to Australia for which a perpetual license was granted to a third party upon disposal of the Australia operations in 2020. All references per hectoliter (per hl) exclude US non-beer activities. Whenever presented in this document, all performance measures (EBITDA, EBIT, profit, tax rate, EPS) are presented on a “normalized” basis, which means they are presented before non-underlying items. Non-underlying items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management and should not replace the measures determined in accordance with IFRS as an indicator of the Company’s performance. We are reporting the results from Argentina applying hyperinflation accounting since 3Q18. The IFRS rules (IAS 29) require us to restate the year-to-date results for the change in the general purchasing power of the local currency, using official indices before converting the local amounts at the closing rate of the period. In 9M24, we reported a negative impact from hyperinflation accounting on the profit attributable to equity holders of AB InBev of 114 million USD. The impact in 9M24 Basic EPS was -0.06 USD. Values in the figures and annexes may not add up, due to rounding. 3Q24 and 9M24 EPS is based upon a weighted average of 2 004 million shares compared to a weighted average of 2 016 million shares for 3Q23 and 9M23.
Legal disclaimer
This release contains “forward-looking statements”. These statements are based on the current expectations and views of future events and developments of the management of AB InBev and are naturally subject to uncertainty and changes in circumstances. The forward-looking statements contained in this release include statements other than historical facts and include statements typically containing words such as “will”, “may”, “should”, “believe”, “intends”, “expects”, “anticipates”, “targets”, “estimates”, “likely”, “foresees” and words of similar import. All statements other than statements of historical facts are forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect the current views of the management of AB InBev, are subject to numerous risks and uncertainties about AB InBev and are dependent on many factors, some of which are outside of AB InBev’s control. There are important factors, risks and uncertainties that could cause actual outcomes and results to be materially different, including, but not limited to the risks and uncertainties relating to AB InBev that are described under Item 3.D of AB InBev’s Annual Report on Form 20-F filed with the SEC on 11 March 2024. Many of these risks and uncertainties are, and will be, exacerbated by any further worsening of the global business and economic environment, including as a result of the ongoing conflict in Russia and Ukraine and in the Middle East, including the conflict in the Red Sea. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. The forward-looking statements should be read in conjunction with the other cautionary statements that are included elsewhere, including AB InBev’s most recent Form 20-F and other reports furnished on Form 6-K, and any other documents that AB InBev has made public. Any forward-looking statements made in this communication are qualified in their entirety by these cautionary statements and there can be no assurance that the actual results or developments anticipated by AB InBev will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, AB InBev or its business or operations. Except as required by law, AB InBev undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The third quarter 2024 (3Q24) and nine months 2024 (9M24) financial data set out in Figure 1 (except for the volume information), Figures 3 to 5, 6, 8, 9 and 12 of this press release have been extracted from the group’s unaudited condensed consolidated interim financial statements as of and for the nine months ended 30 September 2024, which have been reviewed by our statutory auditors PwC Réviseurs d’Entreprises SRL / PwC Bedrijfsrevisoren BV in accordance with the standards of the Public Company Accounting Oversight Board (United States). Financial data included in Figures 7, 10, and 11 have been extracted from the underlying accounting records as of and for the nine months ended 30 September 2024 (except for the volume information). References in this document to materials on our websites, such as www.ab-inbev.com, are included as an aid to their location and are not incorporated by reference into this document.
Conference call and webcast
Investor Conference call and webcast on Thursday, 31 October 2024:
2.00pm Brussels / 1.00pm London / 9.00am New York
Registration details:
Webcast (listen-only mode):
AB InBev 3Q24 Results Webcast
To join by phone, please use one of the following two phone numbers:
Toll-Free: +1-877-407-8029
Toll: +1-201-689-8029
About AB InBev
Anheuser-Busch InBev (AB InBev) is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). As a company, we dream big to create a future with more cheers. We are always looking to serve up new ways to meet life’s moments, move our industry forward and make a meaningful impact in the world. We are committed to building great brands that stand the test of time and to brewing the best beers using the finest ingredients. Our diverse portfolio of well over 500 beer brands includes global brands Budweiser®, Corona®, Stella Artois® and Michelob Ultra®; multi-country brands Beck’s®, Hoegaarden® and Leffe®; and local champions such as Aguila®, Antarctica®, Bud Light®, Brahma®, Cass®, Castle®, Castle Lite®, Cristal®, Harbin®, Jupiler®, Modelo Especial®, Quilmes®, Victoria®, Sedrin®, and Skol®. Our brewing heritage dates back more than 600 years, spanning continents and generations. From our European roots at the Den Hoorn brewery in Leuven, Belgium. To the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle Brewery in South Africa during the Johannesburg gold rush. To Bohemia, the first brewery in Brazil. Geographically diversified with a balanced exposure to developed and developing markets, we leverage the collective strengths of approximately 155,000 colleagues based in nearly 50 countries worldwide. For 2023, AB InBev’s reported revenue was 59.4 billion USD (excluding JVs and associates).
Annex 1: Segment reporting (3Q)
AB InBev Worldwide | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 151 891 | -163 | - | -3 688 | 148 039 | -2.4% | ||||||
of which AB InBev own beer | 132 325 | -159 | - | -4 041 | 128 124 | -3.1% | ||||||
Revenue | 15 574 | 76 | -931 | 327 | 15 046 | 2.1% | ||||||
Cost of sales | -7 180 | -171 | 531 | 139 | -6 680 | 2.0% | ||||||
Gross profit | 8 394 | -95 | -399 | 467 | 8 366 | 5.6% | ||||||
SG&A | -4 583 | -45 | 262 | -123 | -4 490 | -2.7% | ||||||
Other operating income/(expenses) | 217 | 10 | -23 | 11 | 215 | 5.6% | ||||||
Normalized EBIT | 4 027 | -131 | -161 | 355 | 4 091 | 8.9% | ||||||
Normalized EBITDA | 5 431 | -135 | -254 | 382 | 5 424 | 7.1% | ||||||
Normalized EBITDA margin | 34.9% | 36.0% | 169bps | |||||||||
| ||||||||||||
North America | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 23 007 | -159 | - | -83 | 22 764 | -0.4% | ||||||
Revenue | 3 863 | -40 | -13 | 58 | 3 867 | 1.5% | ||||||
Cost of sales | -1 656 | 23 | 5 | 26 | -1 602 | 1.6% | ||||||
Gross profit | 2 207 | -17 | -9 | 84 | 2 265 | 3.8% | ||||||
SG&A | -1 168 | -10 | 5 | 79 | -1 094 | 6.9% | ||||||
Other operating income/(expenses) | -2 | - | - | 9 | 8 | - | ||||||
Normalized EBIT | 1 038 | -27 | -4 | 172 | 1 179 | 16.5% | ||||||
Normalized EBITDA | 1 231 | -28 | -4 | 160 | 1 358 | 12.9% | ||||||
Normalized EBITDA margin | 31.9% | 35.1% | 363bps | |||||||||
| ||||||||||||
Middle Americas | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 37 931 | -4 | - | - 819 | 37 107 | -2.2% | ||||||
Revenue | 4 338 | -31 | -287 | 83 | 4 103 | 1.9% | ||||||
Cost of sales | -1 722 | 13 | 104 | 142 | -1 462 | 8.3% | ||||||
Gross profit | 2 617 | -18 | -183 | 226 | 2 641 | 8.7% | ||||||
SG&A | -995 | 12 | 74 | -27 | -937 | -2.8% | ||||||
Other operating income/(expenses) | 16 | -13 | -1 | 1 | 3 | - | ||||||
Normalized EBIT | 1 637 | -19 | -110 | 199 | 1 707 | 12.1% | ||||||
Normalized EBITDA | 2 051 | -35 | -139 | 190 | 2 068 | 9.3% | ||||||
Normalized EBITDA margin | 47.3% | 50.4% | 343bps | |||||||||
| ||||||||||||
South America | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 39 733 | - | - | - 231 | 39 502 | -0.6% | ||||||
Revenue | 3 106 | 167 | -516 | 175 | 2 932 | 5.6% | ||||||
Cost of sales | -1 586 | -213 | 346 | -49 | -1 502 | -3.1% | ||||||
Gross profit | 1 521 | -46 | -170 | 126 | 1 430 | 8.2% | ||||||
SG&A | -882 | -116 | 157 | -30 | -870 | -3.3% | ||||||
Other operating income/(expenses) | 105 | 20 | -23 | 2 | 104 | 2.2% | ||||||
Normalized EBIT | 744 | -142 | -36 | 98 | 664 | 13.4% | ||||||
Normalized EBITDA | 1 013 | -127 | -86 | 108 | 908 | 10.7% | ||||||
Normalized EBITDA margin | 32.6% | 31.0% | 156bps |
EMEA | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 23 407 | - | - | 632 | 24 039 | 2.7% | ||||||
Revenue | 2 266 | 4 | -106 | 187 | 2 351 | 8.2% | ||||||
Cost of sales | -1 181 | -3 | 74 | -77 | -1 188 | -6.5% | ||||||
Gross profit | 1 085 | - | -32 | 110 | 1 163 | 10.1% | ||||||
SG&A | -652 | -27 | 18 | -28 | -689 | -4.3% | ||||||
Other operating income/(expenses) | 62 | 1 | -1 | -15 | 47 | -24.5% | ||||||
Normalized EBIT | 496 | -26 | -15 | 67 | 521 | 13.3% | ||||||
Normalized EBITDA | 752 | -26 | -28 | 82 | 780 | 10.8% | ||||||
Normalized EBITDA margin | 33.2% | 33.2% | 80bps | |||||||||
| ||||||||||||
Asia Pacific | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 27 672 | - | - | -3 158 | 24 514 | -11.4% | ||||||
Revenue | 1 878 | -1 | -8 | -178 | 1 691 | -9.5% | ||||||
Cost of sales | -886 | -7 | 3 | 93 | -797 | 10.4% | ||||||
Gross profit | 993 | -8 | -5 | -86 | 894 | -8.7% | ||||||
SG&A | -567 | -18 | 5 | - | -580 | -0.1% | ||||||
Other operating income/(expenses) | 34 | 1 | - | -9 | 27 | -26.3% | ||||||
Normalized EBIT | 460 | -25 | 1 | -96 | 340 | -20.8% | ||||||
Normalized EBITDA | 625 | -27 | 1 | -95 | 503 | -15.3% | ||||||
Normalized EBITDA margin | 33.3% | 29.8% | -213bps | |||||||||
| ||||||||||||
Global Export and Holding Companies | 3Q23 | Scope | Currency Translation | Organic Growth | 3Q24 | Organic Growth | ||||||
Total volumes (thousand hls) | 141 | - | - | -29 | 112 | -20.5% | ||||||
Revenue | 122 | -22 | -1 | 2 | 102 | 2.3% | ||||||
Cost of sales | -151 | 16 | - | 5 | -129 | 3.9% | ||||||
Gross profit | -28 | -6 | -1 | 8 | -27 | 22.1% | ||||||
SG&A | -320 | 114 | 3 | -117 | -320 | -33.6% | ||||||
Other operating income/(expenses) | 1 | - | 1 | 24 | 26 | - | ||||||
Normalized EBIT | -347 | 108 | 3 | -85 | -321 | -22.3% | ||||||
Normalized EBITDA | -240 | 107 | 3 | -63 | -194 | -22.6% |
Annex 2: Segment reporting (9M)
AB InBev Worldwide | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 440 021 | - 484 | - | -5 661 | 433 877 | -1.3% | ||||||
of which AB InBev own beer | 382 135 | - 463 | - | -7 233 | 374 438 | -1.9% | ||||||
Revenue | 44 907 | 1 807 | -2 900 | 1 113 | 44 927 | 2.5% | ||||||
Cost of sales | -20 717 | -1 190 | 1 679 | 128 | -20 100 | 0.6% | ||||||
Gross profit | 24 190 | 617 | -1 221 | 1 241 | 24 827 | 5.1% | ||||||
SG&A | -13 635 | - 717 | 908 | - 293 | -13 738 | -2.2% | ||||||
Other operating income/(expenses) | 544 | 20 | -18 | 2 | 548 | 0.4% | ||||||
Normalized EBIT | 11 099 | - 80 | - 331 | 950 | 11 638 | 8.6% | ||||||
Normalized EBITDA | 15 099 | 83 | - 606 | 1 136 | 15 712 | 7.6% | ||||||
Normalized EBITDA margin | 33.6% | 35.0% | 166bps | |||||||||
| ||||||||||||
North America | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 70 401 | - 470 | - | -3 175 | 66 756 | -4.5% | ||||||
Revenue | 11 789 | - 115 | - 12 | - 338 | 11 324 | -2.9% | ||||||
Cost of sales | -5 076 | 66 | 4 | 254 | -4 752 | 5.1% | ||||||
Gross profit | 6 713 | - 49 | - 8 | - 85 | 6 572 | -1.3% | ||||||
SG&A | -3 521 | 11 | 4 | 226 | -3 280 | 6.5% | ||||||
Other operating income/(expenses) | 16 | - | - | -17 | -1 | - | ||||||
Normalized EBIT | 3 209 | - 38 | - 3 | 124 | 3 291 | 3.9% | ||||||
Normalized EBITDA | 3 769 | - 42 | - 4 | 98 | 3 822 | 2.6% | ||||||
Normalized EBITDA margin | 32.0% | 33.8% | 183bps | |||||||||
Middle Americas | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 110 095 | - 13 | - | 1 097 | 111 179 | 1.0% | ||||||
Revenue | 11 911 | - 43 | 206 | 602 | 12 677 | 5.1% | ||||||
Cost of sales | -4 648 | - | - 78 | 84 | -4 641 | 1.8% | ||||||
Gross profit | 7 263 | - 42 | 129 | 686 | 8 036 | 9.5% | ||||||
SG&A | -2 858 | 16 | - 48 | - 111 | -3 002 | -3.9% | ||||||
Other operating income/(expenses) | 24 | - | 1 | 1 | 26 | - | ||||||
Normalized EBIT | 4 429 | - 27 | 82 | 576 | 5 060 | 13.0% | ||||||
Normalized EBITDA | 5 545 | - 34 | 97 | 564 | 6 172 | 10.2% | ||||||
Normalized EBITDA margin | 46.6% | 48.7% | 227bps | |||||||||
| ||||||||||||
South America | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 115 756 | - | - | 61 | 115 818 | 0.1% | ||||||
Revenue | 8 956 | 1 979 | -2 487 | 502 | 8 950 | 5.6% | ||||||
Cost of sales | -4 535 | -1 244 | 1 372 | - 109 | -4 515 | -2.4% | ||||||
Gross profit | 4 421 | 736 | -1 115 | 393 | 4 435 | 8.8% | ||||||
SG&A | -2 686 | - 836 | 820 | - 85 | -2 787 | -3.1% | ||||||
Other operating income/(expenses) | 276 | 16 | -14 | 42 | 319 | 15.2% | ||||||
Normalized EBIT | 2 011 | - 85 | - 309 | 350 | 1 967 | 17.8% | ||||||
Normalized EBITDA | 2 779 | 93 | - 535 | 406 | 2 742 | 14.9% | ||||||
Normalized EBITDA margin | 31.0% | 30.6% | 267bps |
EMEA | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 66 249 | - | - | 2 672 | 68 921 | 4.0% | ||||||
Revenue | 6 337 | 10 | - 478 | 710 | 6 579 | 11.2% | ||||||
Cost of sales | -3 392 | - 9 | 323 | - 324 | -3 403 | -9.5% | ||||||
Gross profit | 2 945 | 1 | - 155 | 386 | 3 176 | 13.1% | ||||||
SG&A | -1 959 | - 34 | 88 | - 89 | -1 994 | -4.5% | ||||||
Other operating income/(expenses) | 145 | 2 | -4 | -18 | 126 | -12.0% | ||||||
Normalized EBIT | 1 131 | -31 | -71 | 279 | 1 308 | 24.7% | ||||||
Normalized EBITDA | 1 894 | - 31 | - 123 | 330 | 2 070 | 17.4% | ||||||
Normalized EBITDA margin | 29.9% | 31.5% | 167bps | |||||||||
| ||||||||||||
Asia Pacific | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 77 261 | - | - | -6 303 | 70 958 | -8.2% | ||||||
Revenue | 5 557 | -2 | -131 | -349 | 5 074 | -6.3% | ||||||
Cost of sales | -2 635 | -20 | 58 | 216 | -2 381 | 8.1% | ||||||
Gross profit | 2 921 | -22 | -73 | -133 | 2 694 | -4.6% | ||||||
SG&A | -1 600 | -26 | 40 | 12 | -1 575 | 0.7% | ||||||
Other operating income/(expenses) | 87 | 2 | -2 | -5 | 82 | -5.6% | ||||||
Normalized EBIT | 1 408 | -45 | -35 | -126 | 1 202 | -9.1% | ||||||
Normalized EBITDA | 1 897 | -49 | -47 | -113 | 1 689 | -6.0% | ||||||
Normalized EBITDA margin | 34.1% | 33.3% | 9bps | |||||||||
| ||||||||||||
Global Export and Holding Companies | 9M23 | Scope | Currency Translation | Organic Growth | 9M24 | Organic Growth | ||||||
Total volumes (thousand hls) | 259 | - | - | -14 | 244 | -5.6% | ||||||
Revenue | 358 | -22 | 1 | -14 | 323 | -4.2% | ||||||
Cost of sales | -431 | 16 | - | 7 | -408 | 1.7% | ||||||
Gross profit | -73 | -6 | - | -7 | -86 | - | ||||||
SG&A | -1 012 | 152 | 5 | -246 | -1 101 | -24.5% | ||||||
Other operating income/(expenses) | -4 | - | - | -1 | -5 | -16.5% | ||||||
Normalized EBIT | -1 089 | 146 | 5 | -253 | -1 191 | -23.3% | ||||||
Normalized EBITDA | -786 | 145 | 5 | -148 | -784 | -19.0% |
Investors
Shaun Fullalove
E-mail: shaun.fullalove@ab-inbev.com
Ekaterina Baillie
E-mail: ekaterina.baillie@ab-inbev.com
Cyrus Nentin
E-mail: cyrus.nentin@ab-inbev.com
Media
Media Relations
E-mail: media.relations@ab-inbev.com
AB InBev Strategic Priorities (Graphic: Business Wire)