SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF
FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
July 30, 2015
Commission File No.: 1-34455
Anheuser-Busch InBev SA/NV
(Translation of registrants name into English)
Belgium
(Jurisdiction of
Incorporation )
Brouwerijplein 1,
3000 Leuven, Belgium
(Address of principal executive offices )
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form
20-F ü Form
40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
No ü
EXHIBIT INDEX
|
|
|
Exhibit
Number |
|
Description |
|
|
99.1 |
|
Press release issued on 30 July 2015 |
|
|
99.2 |
|
Unaudited Interim Report for the six-month period ended 30 June 2015 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
|
|
|
|
|
|
ANHEUSER-BUSCH INBEV SA/NV
(Registrant) |
|
|
Dated: July 30, 2015 |
|
By:/s/ Benoit Loore |
|
|
Name: |
|
Benoit Loore |
|
|
Title: |
|
VP Corporate Governance |
Exhibit 99.1
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
1
/ 21 |
|
|
The enclosed information constitutes 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.
Anheuser-Busch InBev reports
Second Quarter and
Half Year 2015 Results
Except where otherwise stated, the comments below are based on organic figures and refer to 2Q15 and HY15 versus the same period of
last year. For important notes and disclaimers please refer to page 16.
|
|
Revenue: Revenue grew by 4.1% in 2Q15, with solid revenue per hl growth of 6.5%, driven by our revenue management and premiumization initiatives. On a
constant geographic basis, revenue per hl grew by 7.1%. In HY15, revenue grew by 5.1% with revenue per hl growth of 7.0%, on both an organic and constant geographic basis |
|
|
Volume: Total volumes declined by 2.2% in 2Q15, with beer volumes down 2.1%, and non-beer volumes down 2.9%. The decline in beer volumes was driven
mainly by difficult FIFA World Cup comparables, especially in Brazil and Europe, and challenging trading conditions in several countries, partly offset by good volume growth in Mexico and Latin America South. In HY15, total volumes declined by 1.7%,
with own beer volumes down by 1.6% and non-beer volumes down 3.0% |
|
|
Focus Brands: Volumes of our Focus Brands declined by 2.0% in 2Q15 and by 1.1% in HY15. Volumes of our three global brands grew by 6.4% in the
quarter, with Budweiser up 6.0%, Corona up 7.8% and Stella Artois up 4.9%. Our global brands grew by 5.6% in HY15 |
|
|
Cost of Sales (CoS): CoS increased by 4.8% in 2Q15 and by 7.2% on a per hl basis. This increase was partly due to the impact of a one-time benefit of
57 million USD, reported in 2Q14, linked to the reversal of medical expense accruals in the US. On a constant geographic basis, CoS per hl increased by 7.4% in the quarter. In HY15 CoS grew 4.8% and by 6.6% on a per hl basis. On a constant
geographic basis, CoS per hl increased by 6.4% in HY15 |
|
|
EBITDA grew by 4.6% in 2Q15 to 4 156 million USD with a margin expansion of 17 bps, driven mainly by top line growth and the timing of our sales
and marketing investments. In HY15, EBITDA grew by 7.6% with EBITDA margin expansion of 88 bps |
|
|
Net finance results: Net finance costs (excluding non-recurring net finance results) were 554 million USD in 2Q15 compared to 382 million
USD in 2Q14. This increase was driven primarily by other financial results which includes a negative mark-to-market adjustment of 139 million USD in 2Q15, linked to the hedging of our share-based payment programs, compared to a gain of
344 million USD in 2Q14, partially offset by positive currency results and lower interest expenses. Net finance costs were 463 million USD in HY15 compared to 1 248 million USD in HY14 |
|
|
Income taxes: Income tax in 2Q15 was 532 million USD with a normalized effective tax rate (ETR) of 17.2%, compared to an income tax expense of
647 million USD in 2Q14 and a normalized ETR of 18.1%. The normalized ETR was 17.6% in HY15 compared to 18.4% in HY14 |
|
|
Profit: Normalized profit attributable to equity holders of AB InBev was 1 984 million USD in 2Q15 compared to 2 614 million USD in 2Q14,
with organic EBITDA growth being more than offset by unfavorable currency translation, the EBITDA scope adjustment described below, and higher net finance results. Normalized profit attributable to equity holders of AB InBev was 4 278 million
USD in HY15, compared to 4 030 million USD in HY14 |
|
|
Earnings per share: Normalized earnings per share (EPS) decreased to 1.21 USD in 2Q15 from 1.60 USD in 2Q14, and increased to 2.61 USD in HY15 from
2.47 USD in HY14 |
|
|
EBITDA scope change: The 2Q14 results included a one-time positive accounting adjustment of 223 million USD, following an actuarial reassessment
of future liabilities under our post-retirement healthcare benefit plans in the US. This adjustment was reported in the results of North America, as a positive scope change in other operating income, and therefore excluded from organic growth.
Accordingly, a negative scope change of the same amount has been reported in 2Q15 |
|
|
Share Buyback Program: The one billion USD share buyback program announced on 26 February 2015 was completed on 22 June 2015. The shares
acquired fulfill our immediate commitments under the stock ownership plan. |
|
|
2015 Half Year Financial Report: The report is available on our website at www.ab-inbev.com |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
2
/ 21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 1. Consolidated performance (million USD) |
|
|
|
2Q14 |
|
|
2Q15 |
|
|
Organic growth |
|
Total Volumes (thousand hls) |
|
|
119 002 |
|
|
|
116 799 |
|
|
|
-2.2% |
|
AB InBev own beer |
|
|
107 122 |
|
|
|
105 409 |
|
|
|
-2.1% |
|
Non-beer volumes |
|
|
10 838 |
|
|
|
10 521 |
|
|
|
-2.9% |
|
Third party products |
|
|
1 042 |
|
|
|
869 |
|
|
|
-2.3% |
|
Revenue |
|
|
12 201 |
|
|
|
11 052 |
|
|
|
4.1% |
|
Gross profit |
|
|
7 334 |
|
|
|
6 590 |
|
|
|
3.7% |
|
Gross margin |
|
|
60.1% |
|
|
|
59.6% |
|
|
|
-26 bp |
|
Normalized EBITDA |
|
|
4 851 |
|
|
|
4 156 |
|
|
|
4.6% |
|
Normalized EBITDA margin |
|
|
39.8% |
|
|
|
37.6% |
|
|
|
17 bp |
|
Normalized EBIT |
|
|
4 054 |
|
|
|
3 382 |
|
|
|
3.4% |
|
Normalized EBIT margin |
|
|
33.2% |
|
|
|
30.6% |
|
|
|
-22 bp |
|
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
2 818 |
|
|
|
1 929 |
|
|
|
|
|
Normalized profit attributable to equity holders of AB InBev |
|
|
2 614 |
|
|
|
1 984 |
|
|
|
|
|
|
|
|
|
Earnings per share (USD) |
|
|
1.73 |
|
|
|
1.18 |
|
|
|
|
|
Normalized earnings per share (USD) |
|
|
1.60 |
|
|
|
1.21 |
|
|
|
|
|
|
|
HY14 |
|
|
HY15 |
|
|
Organic growth |
|
Total Volumes (thousand hls) |
|
|
224 995 |
|
|
|
224 162 |
|
|
|
-1.7% |
|
AB InBev own beer |
|
|
200 832 |
|
|
|
200 498 |
|
|
|
-1.6% |
|
Non-beer volumes |
|
|
22 670 |
|
|
|
21 995 |
|
|
|
-3.0% |
|
Third party products |
|
|
1 493 |
|
|
|
1 669 |
|
|
|
-1.5% |
|
Revenue |
|
|
22 806 |
|
|
|
21 505 |
|
|
|
5.1% |
|
Gross profit |
|
|
13 652 |
|
|
|
12 843 |
|
|
|
5.3% |
|
Gross margin |
|
|
59.9% |
|
|
|
59.7% |
|
|
|
12 bp |
|
Normalized EBITDA |
|
|
8 731 |
|
|
|
8 123 |
|
|
|
7.6% |
|
Normalized EBITDA margin |
|
|
38.3% |
|
|
|
37.8% |
|
|
|
88 bp |
|
Normalized EBIT |
|
|
7 181 |
|
|
|
6 595 |
|
|
|
7.2% |
|
Normalized EBIT margin |
|
|
31.5% |
|
|
|
30.7% |
|
|
|
61 bp |
|
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
4 190 |
|
|
|
4 610 |
|
|
|
|
|
|
|
|
|
Normalized profit attributable to equity holders of AB InBev |
|
|
4 030 |
|
|
|
4 278 |
|
|
|
|
|
|
|
|
|
Earnings per share (USD) |
|
|
2.57 |
|
|
|
2.81 |
|
|
|
|
|
Normalized earnings per share (USD) |
|
|
2.47 |
|
|
|
2.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 2. Volumes (thousand hls) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
Scope |
|
|
Organic |
|
|
2Q15 |
|
|
Organic growth |
|
|
|
|
|
|
|
|
|
growth |
|
|
|
|
|
Total Volume |
|
|
Own beer volume |
|
North America |
|
|
31 602 |
|
|
|
-244 |
|
|
|
-269 |
|
|
|
31 089 |
|
|
|
-0.9% |
|
|
|
-0.9% |
|
Mexico |
|
|
10 458 |
|
|
|
- |
|
|
|
428 |
|
|
|
10 886 |
|
|
|
4.1% |
|
|
|
4.1% |
|
Latin America - North |
|
|
29 385 |
|
|
|
5 |
|
|
|
-1 913 |
|
|
|
27 478 |
|
|
|
-6.5% |
|
|
|
-7.3% |
|
Latin America - South |
|
|
7 214 |
|
|
|
145 |
|
|
|
405 |
|
|
|
7 764 |
|
|
|
5.5% |
|
|
|
8.7% |
|
Europe |
|
|
13 468 |
|
|
|
-94 |
|
|
|
-1 013 |
|
|
|
12 361 |
|
|
|
-7.6% |
|
|
|
-7.5% |
|
Asia Pacific |
|
|
25 047 |
|
|
|
873 |
|
|
|
-391 |
|
|
|
25 529 |
|
|
|
-1.6% |
|
|
|
-1.6% |
|
Global Export and Holding Companies |
|
|
1 827 |
|
|
|
-276 |
|
|
|
141 |
|
|
|
1 692 |
|
|
|
9.1% |
|
|
|
9.1% |
|
AB InBev Worldwide |
|
|
119 002 |
|
|
|
410 |
|
|
|
-2 612 |
|
|
|
116 799 |
|
|
|
-2.2% |
|
|
|
-2.1% |
|
|
|
HY14 |
|
|
Scope |
|
|
Organic |
|
|
HY15 |
|
|
Organic growth |
|
|
|
|
|
|
|
|
|
growth |
|
|
|
|
|
Total Volume |
|
|
Own beer volume |
|
North America |
|
|
60 521 |
|
|
|
-231 |
|
|
|
-1 875 |
|
|
|
58 416 |
|
|
|
-3.1% |
|
|
|
-3.2% |
|
Mexico |
|
|
19 376 |
|
|
|
- |
|
|
|
615 |
|
|
|
19 991 |
|
|
|
3.2% |
|
|
|
3.2% |
|
Latin America - North |
|
|
60 366 |
|
|
|
12 |
|
|
|
-1 618 |
|
|
|
58 759 |
|
|
|
-2.7% |
|
|
|
-2.7% |
|
Latin America - South |
|
|
17 424 |
|
|
|
338 |
|
|
|
95 |
|
|
|
17 857 |
|
|
|
0.5% |
|
|
|
3.2% |
|
Europe |
|
|
22 234 |
|
|
|
-41 |
|
|
|
-1 536 |
|
|
|
20 657 |
|
|
|
-6.9% |
|
|
|
-6.8% |
|
Asia Pacific |
|
|
39 535 |
|
|
|
5 439 |
|
|
|
312 |
|
|
|
45 286 |
|
|
|
0.8% |
|
|
|
0.8% |
|
Global Export and Holding Companies |
|
|
5 539 |
|
|
|
-2 485 |
|
|
|
143 |
|
|
|
3 197 |
|
|
|
4.7% |
|
|
|
4.7% |
|
AB InBev Worldwide |
|
|
224 995 |
|
|
|
3 032 |
|
|
|
-3 865 |
|
|
|
224 162 |
|
|
|
-1.7% |
|
|
|
-1.6% |
|
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
3
/ 21 |
|
|
The second quarter was challenging, with tough comparables from the FIFA World Cup, and
weak economic conditions in a number of our markets. Unfavorable weather, especially in the US and China, added to the pressure. However, we started the second half with momentum behind our brands and commercial initiatives, and we expect to
accelerate revenue growth for the remainder of the year, when compared to the first half.
Strong revenue per hl growth of 6.5% and good volume
growth in Mexico and Latin America South, helped to drive a 4.1% increase in our top line during the quarter.
Beer volumes declined by 2.1% in the
quarter:
|
(i) |
Our three global brands delivered very strong results in 2Q15, with volumes increasing by 6.4%. This result was led by Corona with growth of 7.8%, driven by
Brazil, Canada, the UK and our global export markets. Budweiser grew by 6.0%, with particularly strong growth in China, while Stella Artois grew by 4.9%, driven by good growth in the US, Argentina, Canada and the UK. |
|
(ii) |
In the US, sales-to-wholesalers (STWs) declined by 1.1%. Sales-to-retailers (STRs) were down by 2.2% due to adverse weather conditions in key markets, and
some share loss. Budweiser volume trends were very encouraging, and there were also strong performances from our above premium brands. Bud Light brand health continues to improve |
|
(iii) |
Mexico delivered another quarter of solid growth with volumes up 4.1%, despite the earlier timing of Easter this year and the benefit of the FIFA World Cup in
2Q14 |
|
(iv) |
Our beer volumes in Brazil declined by 8.6%, due to a very difficult FIFA World Cup comparable, which accounted for approximately 5.5 percentage points of the
decline, and an unfavorable macroeconomic environment |
|
(v) |
In China, poor weather across the country and economic headwinds, led to a decline in industry volumes in the quarter. Our own volumes were essentially flat,
given our premium mix, with further gains in market share, based on our estimates. |
Sales and marketing investments in the quarter
grew by 1.2%, on top of the 9.9% growth in 2Q14 which reflected our FIFA World Cup activations. We remain committed to investing in building our brands and global platforms to drive long term revenue growth. We continue to expect an increase in
sales and marketing investments in FY15 of mid to high single digits.
Consolidated EBITDA grew by 4.6% in the quarter, with margin up 17 bps to
37.6%.
|
|
|
In the US: We expect industry volumes to improve in FY15 compared to FY14. We expect STWs and STRs to converge on a full year basis |
|
|
|
In Mexico: We expect beer industry volumes to continue to grow in FY15, driven by the economy and our own commercial initiatives |
|
|
|
In Brazil: We expect our net revenues to grow by mid to high single digits, helped by continuing growth in premium |
|
|
|
In China: The poor weather and economic headwinds led to a challenging first six months for the beer industry. However, we expect industry volumes to return
to growth in the second half of the year. We expect our revenue per hl to continue to be driven by favorable brand mix |
|
|
|
Total AB InBev: We expect revenue per hl to grow organically in line with inflation, on a constant geographic basis, as a result of our revenue management
initiatives and continued improvements in mix |
|
(ii) |
Cost of Sales per hl: We expect CoS per hl to increase organically by low single digits, on a constant geographic basis, driven by mix and unfavorable
foreign exchange transactional impact (primarily BRL/USD), partly offset by favorable global commodity prices, procurement savings and efficiency gains |
|
(iii) |
Distribution expenses per hl: We expect distribution expenses per hl to increase organically by mid-single digits |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
4
/ 21 |
|
|
|
(iv) |
Sales and Marketing investments: We expect sales and marketing investments to grow by mid to high single digits as we continue to invest behind our
brands and global platforms for the long term |
|
(v) |
Net Finance Costs: We expect the average coupon on net debt to be in the range of 3.5% to 4.0% in FY15. Net pension interest expense and accretion
expenses are expected to be approximately 35 and 80 million USD per quarter, respectively. Other financial results will continue to be impacted by any gains and losses related to the hedging of our share-based payment programs
|
|
(vi) |
Effective Tax Rate: We are amending our guidance for the normalized ETR in FY15 from a range of 22% to 24%, to a range of 20% to 22%. We expect the
normalized ETR to be in the range of 22% to 25% in the period 2016-2018, and in the range of 25% to 27% thereafter. Our normalized ETR guidance continues to exclude the impact of any future gains and losses related to the hedging of our share-based
payment programs |
|
(vii) |
Net Capital Expenditure: We expect net capital expenditure of approximately 4.3 billion USD in FY15, driven by investments in our consumer and
commercial initiatives, and capacity expansion |
|
(viii) |
Debt: Our optimal capital structure remains a net debt to EBITDA ratio of around 2x. Approximately one third of AB InBevs gross debt is
denominated in currencies other than the US dollar, principally the Euro |
United States
Key performance indicators
|
|
|
|
|
|
|
|
|
|
|
Figure 3. United States (million USD) |
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
2Q15 |
|
|
Organic |
|
|
|
|
|
|
|
|
growth |
Total volumes (thousand hls) |
|
|
28 910 |
|
|
|
28 355 |
|
|
-1.1% |
Revenue |
|
|
3 664 |
|
|
|
3 600 |
|
|
0.1% |
Normalized EBITDA |
|
|
1 810 |
|
|
|
1 450 |
|
|
-6.9% |
Normalized EBITDA margin |
|
|
49.4% |
|
|
|
40.3% |
|
|
-303 bp |
|
|
HY14 |
|
|
HY15 |
|
|
Organic |
|
|
|
|
|
|
|
|
growth |
Total volumes (thousand hls) |
|
|
56 047 |
|
|
|
53 860 |
|
|
-3.5% |
Revenue |
|
|
7 084 |
|
|
|
6 856 |
|
|
-2.3% |
Normalized EBITDA |
|
|
3 187 |
|
|
|
2 738 |
|
|
-6.7% |
Normalized EBITDA margin |
|
|
45.0% |
|
|
|
39.9% |
|
|
-189 bp |
In the United States, we estimate industry STRs were down 1.0% in 2Q15, and down 0.8% in HY15. Our own STRs were
down 2.2% in the quarter, and down 1.9% in HY15. We estimate our total market share, based on STRs, declined by approximately 55 bps in 2Q15, and by approximately 50 bps in HY15.
Our STWs were down 1.1% in the quarter, and down 3.5% in HY15. We continue to expect our STRs and STWs to converge on a full year basis.
Bud Light STRs were down low single digits during both 2Q15 and HY15, with the brands share of the premium light segment essentially flat in the
first six months of the year, based on our estimates. We estimate Bud Lights share of total market was down approximately 35 bps in 2Q15, and 30 bps in HY15. Brand health metrics for Bud Light continue to improve, especially with young adults,
driven by our Up For Whatever campaign.
Budweiser delivered one of its best volume and market share results in recent years, driven by
strong market programs focused on the brands quality and heritage credentials. Budweiser STRs declined by low single digits in the quarter, with the brands share of total market down approximately 15 bps in both the quarter and HY15,
based on our estimates.
Our portfolio of Above Premium brands are performing well, gaining approximately 35 bps of total market share in the
quarter, and 25 bps in HY15, based on our estimates. The strongest performances came from Michelob Ultra, Stella Artois and Goose Island which all delivered double digit volume growth in the quarter. These performances were partly offset by the
Ritas which are facing strong competitive pressure.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
5
/ 21 |
|
|
STRs for our sub-premium brands declined by low single digits in both 2Q15 and HY15, losing approximately 25 bps of total market share in both periods, based on our estimates. We estimate we
gained share of the segment in the first six months of the year.
US beer-only revenue per hl grew by 1.2% in the quarter, with the contribution from
brand mix below our expectations, primarily due to the performance of the Ritas.
US EBITDA declined by 6.9% in 2Q15, on an organic basis, with
more than half of this decline due to the impact of a one-time benefit of 57 million USD, reported in 2Q14, linked to the reversal of medical expense accruals in the US. EBITDA margin contracted by approximately 300 bps to 40.3% on an organic
basis. EBITDA declined by 6.7% in HY15 with an EBITDA margin of 39.9%.
In 2Q14, the US results included a one-time positive accounting adjustment of
223 million USD, following an actuarial reassessment of future liabilities under our post-retirement healthcare benefit plans in the US. This adjustment was reported as a positive scope change in other operating income, and therefore excluded
from organic growth. Accordingly, a negative scope change of the same amount has been reported in 2Q15.
The agreements with Crown Imports, for the
distribution of Grupo Modelo products through some of the companys wholly-owned distributors in the US, and with Monster, for the distribution of its brands through the Anheuser-Busch distribution system, have been terminated. The impact of
these terminations on our 2Q15 operating results have been included as scope changes in North America, and therefore excluded from organic growth.
Mexico
Key performance indicators
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 4. Mexico (million USD) |
|
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
2Q15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
10 458 |
|
|
|
10 886 |
|
|
|
4.1% |
|
Revenue |
|
|
1 297 |
|
|
|
1 055 |
|
|
|
7.9% |
|
Normalized EBITDA |
|
|
631 |
|
|
|
569 |
|
|
|
14.4% |
|
Normalized EBITDA margin |
|
|
48.7% |
|
|
|
53.9% |
|
|
|
308 bp |
|
|
|
HY14 |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
19 376 |
|
|
|
19 991 |
|
|
|
3.2% |
|
Revenue |
|
|
2 339 |
|
|
|
1 948 |
|
|
|
8.0% |
|
Normalized EBITDA |
|
|
1 062 |
|
|
|
986 |
|
|
|
15.0% |
|
Normalized EBITDA margin |
|
|
45.4% |
|
|
|
50.6% |
|
|
|
310 bp |
|
Our volumes in Mexico grew by 4.1% in 2Q15, despite an earlier Easter holiday this year, which benefited volumes in 1Q15,
and the benefit of the FIFA World Cup in 2Q14. Our Focus Brands, which represent almost 90% of our total volumes, continue to grow ahead of the total portfolio, increasing by 6.1% in the quarter. Bud Light and Victoria volumes were particularly
strong.
Revenues grew by 7.9% in the quarter, with beer revenue per hl growing by 3.5%, driven by our revenue management initiatives and positive
brand mix from Bud Light.
Cost synergies realized during the second quarter amounted to approximately 30 million USD, bringing the total cost
savings to date to approximately 770 million USD. As previously communicated, the delivery of cost synergies in 2015 will be weighted towards the second half of the year. We remain committed to delivering our target of 1 billion USD of savings
by the end of 2016, with the vast majority expected to come by the end of 2015.
Mexico EBITDA grew by 14.4% to 569 million USD in 2Q15, with an
EBITDA margin enhancement of more than 300 bps to 53.9%. The increase in EBITDA was driven by strong top line growth and the delivery of cost synergies. Mexico EBITDA grew by 15.0% in HY15, with EBITDA margin increasing to 50.6%.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
6
/ 21 |
|
|
Brazil
Key
performance indicators
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 5. Brazil (million USD) |
|
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
2Q15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
27 484 |
|
|
|
25 317 |
|
|
|
-7.9% |
|
Beer volumes |
|
|
20 234 |
|
|
|
18 501 |
|
|
|
-8.6% |
|
Non-beer volumes |
|
|
7 249 |
|
|
|
6 817 |
|
|
|
-6.0% |
|
Revenue |
|
|
2 342 |
|
|
|
1 759 |
|
|
|
4.0% |
|
Normalized EBITDA |
|
|
1 045 |
|
|
|
818 |
|
|
|
9.3% |
|
Normalized EBITDA margin |
|
|
44.6% |
|
|
|
46.5% |
|
|
|
229 bp |
|
|
|
HY14 |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
56 844 |
|
|
|
54 612 |
|
|
|
-3.9% |
|
Beer volumes |
|
|
42 219 |
|
|
|
40 580 |
|
|
|
-3.9% |
|
Non-beer volumes |
|
|
14 625 |
|
|
|
14 032 |
|
|
|
-4.1% |
|
Revenue |
|
|
4 827 |
|
|
|
4 030 |
|
|
|
7.4% |
|
Normalized EBITDA |
|
|
2 265 |
|
|
|
2 007 |
|
|
|
14.0% |
|
Normalized EBITDA margin |
|
|
46.9% |
|
|
|
49.8% |
|
|
|
289 bp |
|
Volumes in Brazil came under pressure in the quarter due to a very difficult FIFA World Cup comparable and an unfavorable
macroeconomic environment. Our total volumes declined by 7.9% in the quarter, with our beer volumes down 8.6%, and our soft drinks volumes down 6.0%. We estimate that approximately 5.5 percentage points of the decline in our beer volumes in the
quarter was driven by the World Cup. Volumes of our premium and near beer brands continue to do very well, finishing the first six months well ahead of last year, led by Budweiser and Skol Beats Senses.
We estimate that our beer market share was down in the quarter reaching a level of 67.6%, following a strong share performance in 2Q14 driven by our FIFA
World Cup campaign.
Brazil beer revenue per hl grew by 15.0% in the quarter, benefitting from our revenue management initiatives, increased own
distribution and premium brand mix. We also faced an easy comparable, with beer revenue per hl growth of only 3.8% in 2Q14 due to promotional activity around the FIFA World Cup.
We continue to gain share in soft drinks, reaching an all-time high share of total market of 19.6% in the quarter, based on our estimates, driven by
strong performances from Pepsi and Guaraná Antarctica.
The macroeconomic environment is challenging and in this context, our commercial focus
is to maintain a healthy balance between volume and revenue per hl, driven by our affordability and pack price strategies, supported by disciplined field execution. Our guidance for net revenue growth of mid to high single digits in Brazil in FY15
remains unchanged.
Brazil delivered strong EBITDA growth of 9.3% in the quarter, reaching 818 million USD, with a margin increase of 229 bps to
46.5%. This result was driven by top line growth, and an easy comparable for sales and marketing following the FIFA World Cup, partly offset by an increase in administration expenses due to the timing of variable compensation accruals.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
7
/ 21 |
|
|
China
Key
performance indicators
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 6. China (million USD) |
|
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
2Q15 |
|
|
Organic
growth |
|
Total volumes (thousand hls) |
|
|
21 146 |
|
|
|
21 952 |
|
|
|
-0.3% |
|
Revenue |
|
|
1 082 |
|
|
|
1 167 |
|
|
|
6.2% |
|
Normalized EBITDA |
|
|
269 |
|
|
|
309 |
|
|
|
12.1% |
|
Normalized EBITDA margin |
|
|
24.8% |
|
|
|
26.5% |
|
|
|
139 bp |
|
|
|
HY14 |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
35 559 |
|
|
|
38 745 |
|
|
|
1.7% |
|
Revenue |
|
|
1 935 |
|
|
|
2 164 |
|
|
|
10.2% |
|
Normalized EBITDA |
|
|
443 |
|
|
|
568 |
|
|
|
28.0% |
|
Normalized EBITDA margin |
|
|
22.9% |
|
|
|
26.3% |
|
|
|
378 bp |
|
We estimate that total industry volumes declined by approximately 6.5% in the quarter and by 4.5% in HY15, with most of
the impact being felt in the value and core segments.
Our beer volumes were essentially flat in the quarter, and up 1.7% in HY15. We estimate our
market share increased by approximately 100 bps, reaching 18.0% in the quarter.
Our three Focus Brands of Budweiser, Harbin and Sedrin grew by 3.5%
in the quarter, with Budweiser maintaining double digit growth. We are continuing to invest behind Budweisers leading position in the international premium segment, and have stepped up support for our Brewed the Hard Way since 1876
quality campaign.
Revenue per hl grew by 6.5% in the quarter, with the majority of the increase coming from improved brand mix, driven mainly by
Budweiser.
China EBITDA grew by 12.1% in 2Q15, driven mainly by top line growth, leading to an EBITDA margin improvement of 139 bps to 26.5%. EBITDA
grew by 28.0% in HY15 with a margin expansion of 378 bps to 26.3%.
Highlights from our other markets
Our Argentina beer volumes increased by double digits in 2Q15 as a result of a strong industry performance driven by good weather. Our near beer
innovation, Quilmes MixxTail Mojito, continues to perform ahead of expectations, and we have recently added two new MixxTail variants, Caipiroska and Caipiroska Strawberry, to the portfolio. Our beer volumes increased by low single digits in HY15.
Own beer volumes in Belgium declined by mid-single digits in the quarter, compared to a growth of 9.3% in 2Q14 driven by our successful FIFA
World Cup activations. Our market share remains stable year to date, based on our estimates, supported by gains in the off trade channel.
Canada
had a very strong quarter, with our beer volumes increasing by low single digits on the back of a good industry performance. We estimate that we gained market share in both 2Q15 and HY15.
In Germany, own beer volumes declined by mid-single digits in the quarter, due to a strong performance in 2Q14 driven by the FIFA World Cup. We
estimate our market share year to date May, for which data is available, is marginally ahead of last year, driven in part by our Becks and Franziskaner innovations.
In South Korea, beer volumes were down high single digits in the quarter, due to an industry decline and an estimated market share loss in a very
competitive environment. As part of our summer campaign we have launched Premier OB Weizen and new can packaging for Cass.
In the United
Kingdom, our own products declined by low single digits in 2Q15, versus a growth of 13.5% in 2Q14 driven by the FIFA World Cup. We estimate that we gained share in the quarter driven by
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
8
/ 21 |
|
|
Stella Artois, supported by the brands sponsorship of the Wimbledon tennis tournament, as well as positive results from our Corona activations.
|
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 7. Consolidated income statement (million USD) |
|
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
2Q15 |
|
|
Organic |
|
|
|
|
|
|
|
|
|
growth |
|
Revenue |
|
|
12 201 |
|
|
|
11 052 |
|
|
|
4.1% |
|
Cost of sales |
|
|
-4 867 |
|
|
|
-4 462 |
|
|
|
-4.8% |
|
Gross profit |
|
|
7 334 |
|
|
|
6 590 |
|
|
|
3.7% |
|
Distribution expenses |
|
|
-1 181 |
|
|
|
-1 066 |
|
|
|
-5.4% |
|
Sales and marketing expenses |
|
|
-1 945 |
|
|
|
-1 757 |
|
|
|
-1.2% |
|
Administrative expenses |
|
|
-670 |
|
|
|
-618 |
|
|
|
-10.7% |
|
Other operating income/(expenses) |
|
|
516 |
|
|
|
233 |
|
|
|
5.8% |
|
|
|
|
|
Normalized profit from operations (normalized EBIT) |
|
|
4 054 |
|
|
|
3 382 |
|
|
|
3.4% |
|
Non-recurring items above EBIT |
|
|
-86 |
|
|
|
20 |
|
|
|
|
|
Net finance income/(cost) |
|
|
-382 |
|
|
|
-554 |
|
|
|
|
|
Non-recurring net finance income/(cost) |
|
|
269 |
|
|
|
-60 |
|
|
|
|
|
Share of results of associates |
|
|
3 |
|
|
|
7 |
|
|
|
|
|
Income tax expense |
|
|
-647 |
|
|
|
-532 |
|
|
|
|
|
Profit |
|
|
3 211 |
|
|
|
2 263 |
|
|
|
|
|
Profit attributable to non-controlling interest |
|
|
393 |
|
|
|
334 |
|
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
2 818 |
|
|
|
1 929 |
|
|
|
|
|
|
|
|
|
Normalized EBITDA |
|
|
4 851 |
|
|
|
4 156 |
|
|
|
4.6% |
|
Normalized profit attributable to equity holders of AB InBev |
|
|
2 614 |
|
|
|
1 984 |
|
|
|
|
|
|
|
HY14 |
|
|
HY15 |
|
|
Organic |
|
|
|
|
|
|
|
|
|
growth |
|
Revenue |
|
|
22 806 |
|
|
|
21 505 |
|
|
|
5.1% |
|
Cost of sales |
|
|
-9 154 |
|
|
|
-8 662 |
|
|
|
-4.8% |
|
Gross profit |
|
|
13 652 |
|
|
|
12 843 |
|
|
|
5.3% |
|
Distribution expenses |
|
|
-2 225 |
|
|
|
-2 125 |
|
|
|
-8.0% |
|
Sales and marketing expenses |
|
|
-3 606 |
|
|
|
-3 343 |
|
|
|
-1.3% |
|
Administrative expenses |
|
|
-1 359 |
|
|
|
-1 263 |
|
|
|
-8.4% |
|
Other operating income/(expenses) |
|
|
719 |
|
|
|
483 |
|
|
|
23.2% |
|
|
|
|
|
Normalized profit from operations (normalized EBIT) |
|
|
7 181 |
|
|
|
6 595 |
|
|
|
7.2% |
|
Non-recurring items above EBIT |
|
|
-106 |
|
|
|
11 |
|
|
|
|
|
Net finance income/(cost) |
|
|
-1 248 |
|
|
|
-463 |
|
|
|
|
|
Non-recurring net finance income/(cost) |
|
|
238 |
|
|
|
335 |
|
|
|
|
|
Share of results of associates |
|
|
11 |
|
|
|
8 |
|
|
|
|
|
Income tax expense |
|
|
-1 066 |
|
|
|
-1 125 |
|
|
|
|
|
Profit |
|
|
5 010 |
|
|
|
5 361 |
|
|
|
|
|
Profit attributable to non-controlling interest |
|
|
820 |
|
|
|
751 |
|
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
4 190 |
|
|
|
4 610 |
|
|
|
|
|
|
|
|
|
Normalized EBITDA |
|
|
8 731 |
|
|
|
8 123 |
|
|
|
7.6% |
|
Normalized profit attributable to equity holders of AB InBev |
|
|
4 030 |
|
|
|
4 278 |
|
|
|
|
|
Revenue
Consolidated
revenue grew by 4.1% in 2Q15, with revenue per hl growth of 6.5%. This result was driven by our revenue management initiatives and brand mix, as we continue to implement our premiumization strategies. On a constant geographic basis, revenue per hl
grew by 7.1%. In HY15, revenue grew by 5.1% with revenue per hl growth of 7.0%, on both an organic and constant geographic basis.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
9
/ 21 |
|
|
Cost of Sales (CoS)
Total CoS increased by 4.8% in 2Q15, and by 7.2% on a per hl basis. This increase was driven primarily by unfavorable foreign exchange transactional
impacts, and higher depreciation from recent investments in Brazil. The increase was also partly due to the impact of a one-time benefit of 57 million USD, reported in 2Q14, linked to the reversal of medical expense accruals in the US. On a
constant geographic basis, CoS per hl increased by 7.4%. In HY15, CoS increased by 4.8%, with a CoS per hl increase of 6.6%, and 6.4% on a constant geographic basis.
Distribution expenses
Distribution expenses grew by
5.4% and by 7.8% on a per hl basis in 2Q15. This increase was driven mainly by increased freight rates in the US, increased own distribution in Brazil, which is more than offset by the increase in net revenues, the growth of our premium and near
beer brands in Brazil, and inflationary increases in Latin America South. Distribution expenses increased by 8.0% in HY15 and by 9.9% on a per hl basis.
Sales
and marketing investments
Sales and marketing investments increased by 1.2% in 2Q15. This compares to a growth of 9.9% in 2Q14 which
reflected our FIFA World Cup activations. Sales and Marketing investments increased by 1.3% in HY15.
Administrative expenses
Administrative expenses increased by 10.7% in 2Q15 due mainly to the timing of variable compensation accruals. In HY15, administrative expenses increased
by 8.4%.
Other operating income
Other operating
income grew by 5.8% in 2Q15, on an organic basis, to 233 million USD in 2Q15, due mainly to the timing of incentives in China.
Other operating
income, as reported in 2Q14, was 516 million USD and included a one-time positive accounting adjustment of 223 million USD, following an actuarial reassessment of future liabilities under our post-retirement healthcare benefit plans in the
US. This adjustment was reported in the results of North America in 2Q14, as a positive scope change in other operating income, and therefore excluded from organic growth. Accordingly, a negative scope change of the same amount has been reported in
2Q15.
Other operating income increased by 23.2% in HY15, on an organic basis.
Non-recurring items above EBIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 8. Non-recurring
items above EBIT (million USD) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
|
2Q15 |
|
|
HY14 |
|
|
HY15 |
|
Restructuring (including impairment losses) |
|
|
-27 |
|
|
|
-37 |
|
|
|
-51 |
|
|
|
-55 |
|
Judicial settlement |
|
|
- |
|
|
|
-77 |
|
|
|
- |
|
|
|
-77 |
|
Acquisition costs business combinations |
|
|
-56 |
|
|
|
-4 |
|
|
|
-68 |
|
|
|
-4 |
|
Business and asset disposal (including impairment losses) |
|
|
-3 |
|
|
|
138 |
|
|
|
13 |
|
|
|
147 |
|
Impact on profit from operations |
|
|
-86 |
|
|
|
20 |
|
|
|
-106 |
|
|
|
11 |
|
Normalized profit from operations excludes positive non-recurring items of 20 million USD. This amount includes
business and asset disposals of 138 million USD, which consists primarily of compensation for the termination of agreements with Crown Imports for the distribution of Grupo Modelo products through the companys wholly-owned distributors in
the US, and with Monster for the distribution of its brands through the Anheuser-Busch distribution system. The judicial settlement expense relates to the agreement reached between CADE, the Brazilian Antitrust Authority, and Ambev, regarding the
Tô Contigo customer loyalty program.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
10
/ 21 |
|
|
Net finance income/(cost)
|
|
|
|
|
|
|
|
|
Figure 9. Net finance
income/(cost) (million USD) |
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
2Q15 |
|
HY14 |
|
HY15 |
Net interest expense |
|
-442 |
|
-352 |
|
-883 |
|
-760 |
Net interest on net defined benefit liabilities |
|
-28 |
|
-30 |
|
-58 |
|
-60 |
Accretion expense |
|
-83 |
|
-73 |
|
-158 |
|
-149 |
Other financial results |
|
171 |
|
-99 |
|
-149 |
|
506 |
Net finance income/(cost) |
|
-382 |
|
-554 |
|
-1 248 |
|
-463 |
Net finance cost (excluding non-recurring net finance results) was 554 million USD in 2Q15 compared to
382 million USD in 2Q14. This increase was driven primarily by other financial results which includes a negative mark-to-market adjustment of 139 million USD in 2Q15, linked to the hedging of our share-based payment programs, compared to a
gain of 344 million USD in 2Q14, partially offset by positive currency results and lower net interest expenses. Net finance cost in HY15 includes a positive mark-to-market adjustment of 618 million USD, linked to the hedging of our
share-based payment programs and positive currency results in other financial results, as well as lower net interest expense. Net finance cost in HY14 includes a positive mark-to-market adjustment of 292 million USD, partially offset by
negative currency results.
The number of shares covered by the hedging of our share-based payment programs, and the opening and closing share
prices, are shown in figure 10 below.
|
|
|
|
|
|
|
|
|
Figure 10. Share-based
payment hedge |
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
2Q15 |
|
HY14 |
|
HY15 |
Share price at the start of the period (Euro) |
|
76.10 |
|
113.80 |
|
77.26 |
|
93.86 |
Share price at the end of the period (Euro) |
|
83.90 |
|
107.50 |
|
83.90 |
|
107.50 |
Number of derivative equity instruments at the end of the period (millions) |
|
28.10 |
|
35.50 |
|
28.10 |
|
35.50 |
Non-recurring net finance income/(cost)
|
|
|
|
|
|
|
|
|
Figure 11. Non-recurring
net finance income/(cost) (million USD) |
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
2Q15 |
|
HY14 |
|
HY15 |
Mark-to-market adjustment |
|
269 |
|
-60 |
|
238 |
|
335 |
Non-recurring net finance income/(cost) |
|
269 |
|
-60 |
|
238 |
|
335 |
Non-recurring net finance results were -60 million USD in 2Q15 and 269 million USD in 2Q14 resulting
from the mark-to-market impact of derivative instruments entered into to hedge the deferred share instrument issued in a transaction related to the combination with Grupo Modelo. The deferred share instrument was hedged at an average price of
approximately 68 Euro per share. The number of shares covered by the hedging of the deferred share instrument, and the opening and closing share prices, are shown in figure 12.
|
|
|
|
|
|
|
|
|
Figure 12. Deferred share
instrument hedge |
|
|
|
|
|
|
|
|
|
|
2Q14 |
|
2Q15 |
|
HY14 |
|
HY15 |
Share price at the start of the period (Euro) |
|
76.10 |
|
113.80 |
|
77.26 |
|
93.86 |
Share price at the end of the period (Euro) |
|
83.90 |
|
107.50 |
|
83.90 |
|
107.50 |
Number of derivative equity instruments at the end of the period (millions) |
|
23.1 |
|
23.1 |
|
23.1 |
|
23.1 |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
11
/ 21 |
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 13. Income tax expense (million USD) |
|
|
|
2Q14 |
|
|
2Q15 |
|
|
HY14 |
|
|
HY15 |
|
Income tax expense |
|
|
647 |
|
|
|
532 |
|
|
|
1 066 |
|
|
|
1 125 |
|
Effective tax rate |
|
|
16.8% |
|
|
|
19.1% |
|
|
|
17.6% |
|
|
|
17.4% |
|
Normalized effective tax rate |
|
|
18.1% |
|
|
|
17.2% |
|
|
|
18.4% |
|
|
|
17.6% |
|
Income tax expense in 2Q15 was 532 million USD with a normalized effective tax rate (ETR) of 17.2%, compared
to an income tax expense of 647 million USD in 2Q14 and a normalized ETR of 18.1%. The normalized ETR in 2Q15 was favorably impacted by changes in the country profit mix, partly offset by the negative impact of the mark-to-market adjustment of
139 million USD linked to the hedging of our share-based payment programs.
Profit attributable to non-controlling interest
Profit attributable to non-controlling interest decreased from 393 million USD in 2Q14 to 334 million USD in 2Q15, with a strong operating
performance in Ambev being offset by currency translation effects.
Normalized Profit and Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 14. Normalized Profit attribution to equity holders of AB InBev (million USD) |
|
|
|
2Q14 |
|
|
2Q15 |
|
|
HY14 |
|
|
HY15 |
|
Profit attributable to equity holders of AB InBev |
|
|
2 818 |
|
|
|
1 929 |
|
|
|
4 190 |
|
|
|
4 610 |
|
Non-recurring items, after taxes, attributable to equity holders of AB InBev |
|
|
65 |
|
|
|
-5 |
|
|
|
78 |
|
|
|
3 |
|
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB InBev |
|
|
-269 |
|
|
|
60 |
|
|
|
-238 |
|
|
|
-335 |
|
Normalized profit attributable to equity holders of AB InBev |
|
|
2 614 |
|
|
|
1 984 |
|
|
|
4 030 |
|
|
|
4 278 |
|
Normalized profit attributable to equity holders of AB InBev decreased to 1 984 million USD in 2Q15 from 2
614 million USD in 2Q14. This decrease was driven by unfavorable currency translation, the EBITDA scope adjustments mentioned earlier, and higher net finance costs, partly offset by organic growth in EBITDA. Normalized profit attributable to
equity holders of AB InBev was 4 278 million USD in HY15, compared to 4 030 million USD in HY14.
Normalized EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 15. Earnings per share (USD) |
|
|
|
2Q14 |
|
|
2Q15 |
|
|
HY14 |
|
|
HY15 |
|
Basic earnings per share |
|
|
1.73 |
|
|
|
1.18 |
|
|
|
2.57 |
|
|
|
2.81 |
|
Non-recurring items, after taxes, attributable to equity holder of AB InBev, per share |
|
|
0.04 |
|
|
|
- |
|
|
|
0.05 |
|
|
|
- |
|
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB InBev, per share |
|
|
-0.17 |
|
|
|
0.03 |
|
|
|
-0.15 |
|
|
|
-0.20 |
|
Normalized earnings per share |
|
|
1.60 |
|
|
|
1.21 |
|
|
|
2.47 |
|
|
|
2.61 |
|
Normalized earnings per share (EPS) decreased to 1.21 USD in 2Q15 from 1.60 USD in 2Q14, and increased to 2.61 USD in
HY15 from 2.47 USD in HY14
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
12
/ 21 |
|
|
Reconciliation between profit attributable to equity holders and normalized EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 16. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD) |
|
|
|
2Q14 |
|
|
2Q15 |
|
|
HY14 |
|
|
HY15 |
|
Profit attributable to equity holders of AB InBev |
|
|
2 818 |
|
|
|
1 929 |
|
|
|
4 190 |
|
|
|
4 610 |
|
Non-controlling interests |
|
|
393 |
|
|
|
334 |
|
|
|
820 |
|
|
|
751 |
|
Profit |
|
|
3 211 |
|
|
|
2 263 |
|
|
|
5 010 |
|
|
|
5 361 |
|
Income tax expense |
|
|
647 |
|
|
|
532 |
|
|
|
1 066 |
|
|
|
1 125 |
|
Share of result of associates |
|
|
-3 |
|
|
|
-7 |
|
|
|
-11 |
|
|
|
-8 |
|
Net finance (income)/cost |
|
|
382 |
|
|
|
554 |
|
|
|
1 248 |
|
|
|
463 |
|
Non-recurring net finance (income)/cost |
|
|
-269 |
|
|
|
60 |
|
|
|
-238 |
|
|
|
-335 |
|
Non-recurring items above EBIT (incl. non-recurring impairment) |
|
|
86 |
|
|
|
-20 |
|
|
|
106 |
|
|
|
-11 |
|
Normalized EBIT |
|
|
4 054 |
|
|
|
3 382 |
|
|
|
7 181 |
|
|
|
6 595 |
|
Depreciation, amortization and impairment |
|
|
797 |
|
|
|
774 |
|
|
|
1 550 |
|
|
|
1 528 |
|
Normalized EBITDA |
|
|
4 851 |
|
|
|
4 156 |
|
|
|
8 731 |
|
|
|
8 123 |
|
Normalized EBITDA and normalized EBIT are measures utilized by AB InBev to demonstrate the companys 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) net finance cost; (v) non-recurring net finance cost; (vi) non-recurring items above EBIT (including non-recurring
impairment); and (vii) depreciation, amortization and impairment.
Normalized EBITDA and normalized EBIT are not accounting measures under IFRS
accounting 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 InBevs definition of normalized EBITDA and normalized EBIT may not be comparable to that of other companies.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
13
/ 21 |
|
|
|
|
|
|
|
|
|
|
|
Figure 17. Cash Flow Statement (million USD) |
|
|
|
HY14 |
|
|
HY15 |
|
Operating activities |
|
|
|
|
|
|
|
|
Profit |
|
|
5 010 |
|
|
|
5 361 |
|
Interest, taxes and non-cash items included in profit |
|
|
3 442 |
|
|
|
2 829 |
|
Cash flow from operating activities before changes in working capital and use of provisions |
|
|
8 452 |
|
|
|
8 190 |
|
Change in working capital |
|
|
-1 121 |
|
|
|
- 965 |
|
Pension contributions and use of provisions |
|
|
- 210 |
|
|
|
- 194 |
|
Interest and taxes (paid)/received |
|
|
-2 425 |
|
|
|
-2 336 |
|
Dividends received |
|
|
25 |
|
|
|
19 |
|
Cash flow from operating activities |
|
|
4 721 |
|
|
|
4 714 |
|
Investing activities |
|
|
|
|
|
|
|
|
Net capex |
|
|
-1 579 |
|
|
|
-1 609 |
|
Acquisition and sale of subsidiaries, net of cash acquired/disposed of |
|
|
-5 499 |
|
|
|
- 220 |
|
Proceeds from the sale of/(investments in) short-term debt securities |
|
|
- 39 |
|
|
|
- 71 |
|
Net of tax proceeds from the sale of assets held for sale |
|
|
- 146 |
|
|
|
228 |
|
Other |
|
|
- 204 |
|
|
|
- 272 |
|
Cash flow from investing activities |
|
|
-7 467 |
|
|
|
-1 944 |
|
Financing activities |
|
|
|
|
|
|
|
|
Dividends paid |
|
|
-4 299 |
|
|
|
-4 556 |
|
Net (payments on)/proceeds from borrowings |
|
|
5 667 |
|
|
|
1 507 |
|
Net proceeds from the issue of share capital |
|
|
72 |
|
|
|
3 |
|
Share buyback |
|
|
- |
|
|
|
-1 000 |
|
Other (including net finance (cost)/income other than interest) |
|
|
- 228 |
|
|
|
- 196 |
|
Cash flow from financing activities |
|
|
1 212 |
|
|
|
-4 242 |
|
Net increase/(decrease) in cash and cash equivalents |
|
|
-1 534 |
|
|
|
-1 472 |
|
HY15 recorded a decrease in cash and cash equivalents of 1 472 million USD compared to a decrease of 1
534 million USD in HY14, with the following movements:
|
|
|
Cash flow from operating activities reached 4 714 million USD in the first half of 2015 compared to 4 721 million USD in the first half of 2014.
Changes in working capital in the first half of 2015 and 2014 reflect higher working capital levels compared to year-end levels partly due to seasonality. Changes in working capital in the first half of 2015 are negatively impacted by the payments
related to capital expenditure projects in 2014, which had on average longer payment terms. |
|
|
|
Cash flow from investing activities was a cash outflow of 1 944 million USD in the first half of 2015 compared to an outflow of 7 467 million USD in
the first half of 2014. In HY14, cash outflow from investing activities mainly reflects the acquisition of OB. |
|
|
|
Cash flow from financing activities amounted to a cash outflow of 4 242 million USD in the first half of 2015, as compared to a cash inflow of 1
212 million USD in the first half of 2014. The cash outflow from financing activities in HY15 reflects the share buyback program announced on 26 February 2015, and higher dividends paid. In HY14, cash inflow from financing activities
reflects the funding of the OB acquisition. |
AB InBevs cash, cash equivalents and short-term investments in debt securities
less bank overdrafts as of 30 June 2015 amounted to 6 722 million USD. As of 30 June 2015, the company had total liquidity of 14 722 million USD, which consisted of 8 000 million USD available under committed long-term credit
facilities and 6 722 million USD of cash, cash equivalents and short-term investments in debt securities
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
14
/ 21 |
|
|
less bank overdrafts. Although AB InBev may borrow such amounts to meet its liquidity needs, the company principally relies on cash flows from operating activities to fund its continuing
operations.
AB InBevs net debt as of 30 June 2015 was 44.4 billion USD, an increase from 42.1 billion USD as of 31 December 2014.
The net debt to normalized EBITDA ratio increased from 2.27x as of 31 December 2014 to 2.48x as of 30 June 2015, on a reported basis.
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
15
/ 21 |
|
|
|
BOND ISSUANCE On 23 July 2015 Anheuser-Busch InBev
Finance Inc., a subsidiary of Anheuser-Busch InBev SA/NV issued 565 million USD aggregate principal amount of fixed rate Notes due 2045. The Notes will bear interest at an annual rate of 4.600%.
GUANGZHOU ZHUJIANG BREWERY CO. LTD
On 23 July 2015 Anheuser-Busch InBev entered into a subscription agreement for private placement of shares of Guangzhou Zhujiang Brewery Co., Ltd (Zhujiang
Brewery), investing no less than 1.6 billion RMB (approximately 258 million USD) to increase its holdings in Zhujiang Brewery to 29.99%, subject to various regulatory approvals. This additional investment allows us to further deepen the
strategic partnership with Zhujiang Brewery which started in the early 1980s. |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
16
/ 21 |
|
|
AB InBevs 2Q15 and 2Q14 and HY15 and HY14 reported numbers are based on unaudited interim
consolidated financial statements prepared in accordance with IFRS. Unless otherwise indicated, amounts are presented in million USD.
To facilitate the understanding of AB InBevs 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. Scope changes 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.
All
references per hectoliter (per hl) exclude US non-beer activities. To eliminate the effect of geography mix, i.e. the impact of stronger volume growth coming from countries with lower revenue per hl, and lower Cost of Sales per hl, we are also
presenting, where specified, organic growth per hectoliter figures on a constant geographic basis. When we make estimations on a constant geographic basis, we assume each country in which we operate accounts for the same percentage of our global
volume as in the same period of the previous year.
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-recurring items. Non-recurring 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 Companys performance. Values in the figures and annexes may not add up, due to rounding.
Effective 1 April 2014, AB InBev discontinued the reporting of volumes sold to Constellation Brands under the
temporary supply agreement (TSA), since these volumes do not form part of the underlying performance of our business. The 1Q14 volumes related to the TSA have therefore been treated as a negative scope.
2Q15 EPS is based upon a weighted average of 1 640 million shares compared to 1
632 million shares for 2Q14.
Legal Disclaimer
This release contains certain forward-looking statements reflecting the current views of the
management of Anheuser-Busch InBev with respect to, among other things, Anheuser-Busch InBevs strategic objectives. These statements involve risks and uncertainties. The ability of Anheuser-Busch InBev to achieve these objectives is dependent
on many factors some of which may be outside of managements control. By their nature, forward-looking statements involve risk and uncertainty because they reflect Anheuser-Busch InBevs current expectations and assumptions as to future
events and circumstances that may not prove accurate. The actual results could differ materially from those anticipated in the forward-looking statements for many reasons including the risks described under Item 3.D of Anheuser-Busch
InBevs Annual Report on Form 20-F filed with the US Securities and Exchange Commission on 24 March 2015. Anheuser-Busch InBev cannot assure you that the future results, level of activity, performance or achievements of Anheuser-Busch
InBev will meet the expectations reflected in the forward-looking statements. Anheuser-Busch InBev disclaims any obligation to update any of these statements after the date of this release.
The half year 2015 (HY15) financial data set out in Figure 1 (except for the volume information),
Figures 7 to 9, 11, 13 to 17 of this press release have been extracted from the groups unaudited condensed consolidated interim financial statements as of and for the six months ended 30 June 2015, which have been reviewed by our
statutory auditors PricewaterhouseCoopers Bedrijfsrevisoren BCVBA in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity and the
standards of the Public Company Accounting Oversight Board (United States). The auditors concluded that, based on their review, nothing had come to their attention that caused them to believe that those interim financial statements were not
presented fairly, in all material respects, in accordance with IAS 34 Interim Financial Reporting, as issued by the IASB and as adopted by the European Union. Financial data included in Figures 3 to 6, 10 and 12 have been extracted from
the underlying accounting records as of and for the six months ended 30 June 2015 (except for the volume information)
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
17
/ 21 |
|
|
|
|
|
|
|
CONFERENCE CALL AND WEBCAST |
|
|
Investor Conference call and Webcast on Thursday, 30 July
2015: 3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode)
http://event.on24.com/r.htm?e=933896&s=1&k=B9E4E189E9D13B18E89E41F1B8024A6C
Conference call (with interactive Q&A)
http://www.directeventreg.com/registration/event/77051076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media |
|
Investors |
|
|
Marianne Amssoms |
|
Graham Staley |
|
|
Tel: +1-212-573-9281 |
|
Tel: +1-212-573-4365 |
|
|
E-mail: marianne.amssoms@ab-inbev.com |
|
E-mail: graham.staley@ab-inbev.com |
|
|
|
|
|
Karen Couck |
|
Christina Caspersen |
|
|
Tel: +1-212-573-9283 |
|
Tel: +1-212-573-4376 |
|
|
E-mail: karen.couck@ab-inbev.com |
|
E-mail: christina.caspersen@ab-inbev.com |
|
|
|
|
|
Kathleen Van Boxelaer |
|
Heiko Vulsieck |
|
|
Tel: +32-16-27-68-23 |
|
Tel: +32-16-27-68-88 |
|
|
E-mail: kathleen.vanboxelaer@ab-inbev.com |
|
E-mail: heiko.vulsieck@ab-inbev.com |
|
About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with American Depositary Receipts on the New York Stock
Exchange (NYSE: BUD). It is the leading global brewer and one of the worlds top five consumer products companies. Beer, the original social network, has been bringing people together for thousands of years and our portfolio of well over 200
beer brands continues to forge strong connections with consumers. This includes global brands Budweiser®, Corona® and Stella Artois®; international brands Becks®, Leffe®, and Hoegaarden®; and local champions Bud
Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Victoria®, Modelo Especial®, Michelob Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Cass®, and Jupiler®.
Anheuser-Busch InBevs dedication to heritage and quality originates from the Den Hoorn brewery in Leuven, Belgium dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA since 1852.
Geographically diversified with a balanced exposure to developed and developing markets, Anheuser-Busch InBev leverages the collective strengths of its approximately 155 000 employees based in 25 countries worldwide. In 2014, AB InBev realized 47.1
billion USD revenue. The company strives to be the Best Beer Company Bringing People Together For a Better World. Learn more at ab-inbev.com, at facebook.com/ABInBev or on Twitter through @ABInBevNews. |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
18
/ 21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB InBev Worldwide |
|
2Q14 |
|
|
Scope |
|
|
Currency |
|
|
Organic |
|
|
2Q15 |
|
|
Organic |
|
|
|
|
|
|
|
|
|
translation |
|
|
growth |
|
|
|
|
|
growth |
|
Total volumes (thousand hls) |
|
|
119 002 |
|
|
|
410 |
|
|
|
- |
|
|
|
-2 612 |
|
|
|
116 799 |
|
|
|
-2.2% |
|
of which AB InBev own beer |
|
|
107 122 |
|
|
|
562 |
|
|
|
- |
|
|
|
-2 275 |
|
|
|
105 409 |
|
|
|
-2.1% |
|
Revenue |
|
|
12 201 |
|
|
|
-243 |
|
|
|
-1 398 |
|
|
|
492 |
|
|
|
11 052 |
|
|
|
4.1% |
|
Cost of sales |
|
|
-4 867 |
|
|
|
126 |
|
|
|
505 |
|
|
|
-227 |
|
|
|
-4 462 |
|
|
|
-4.8% |
|
Gross profit |
|
|
7 334 |
|
|
|
-116 |
|
|
|
-893 |
|
|
|
265 |
|
|
|
6 590 |
|
|
|
3.7% |
|
Distribution expenses |
|
|
-1 181 |
|
|
|
9 |
|
|
|
169 |
|
|
|
-63 |
|
|
|
-1 066 |
|
|
|
-5.4% |
|
Sales and marketing expenses |
|
|
-1 945 |
|
|
|
1 |
|
|
|
211 |
|
|
|
-23 |
|
|
|
-1 757 |
|
|
|
-1.2% |
|
Administrative expenses |
|
|
-670 |
|
|
|
26 |
|
|
|
95 |
|
|
|
-68 |
|
|
|
-618 |
|
|
|
-10.7% |
|
Other operating income/(expenses) |
|
|
516 |
|
|
|
-244 |
|
|
|
-54 |
|
|
|
15 |
|
|
|
233 |
|
|
|
5.8% |
|
Normalized EBIT |
|
|
4 054 |
|
|
|
-324 |
|
|
|
-472 |
|
|
|
126 |
|
|
|
3 382 |
|
|
|
3.4% |
|
Normalized EBITDA |
|
|
4 851 |
|
|
|
-324 |
|
|
|
-579 |
|
|
|
207 |
|
|
|
4 156 |
|
|
|
4.6% |
|
Normalized EBITDA margin |
|
|
39.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37.6% |
|
|
|
17 bp |
|
North America |
|
2Q14 |
|
|
Scope |
|
|
Currency |
|
|
Organic |
|
|
2Q15 |
|
|
Organic |
|
|
|
|
|
|
|
|
|
translation |
|
|
growth |
|
|
|
|
|
growth |
|
Total volumes (thousand hls) |
|
|
31 602 |
|
|
|
-244 |
|
|
|
- |
|
|
|
-269 |
|
|
|
31 089 |
|
|
|
-0.9% |
|
Revenue |
|
|
4 229 |
|
|
|
-67 |
|
|
|
-69 |
|
|
|
23 |
|
|
|
4 118 |
|
|
|
0.6% |
|
Cost of sales |
|
|
-1 614 |
|
|
|
55 |
|
|
|
16 |
|
|
|
-55 |
|
|
|
-1 598 |
|
|
|
-3.5% |
|
Gross profit |
|
|
2 616 |
|
|
|
-11 |
|
|
|
-52 |
|
|
|
-32 |
|
|
|
2 520 |
|
|
|
-1.2% |
|
Distribution expenses |
|
|
-332 |
|
|
|
- |
|
|
|
12 |
|
|
|
-21 |
|
|
|
-340 |
|
|
|
-6.4% |
|
Sales and marketing expenses |
|
|
-557 |
|
|
|
-1 |
|
|
|
10 |
|
|
|
-38 |
|
|
|
-585 |
|
|
|
-6.7% |
|
Administrative expenses |
|
|
-111 |
|
|
|
-2 |
|
|
|
3 |
|
|
|
-17 |
|
|
|
-128 |
|
|
|
-15.3% |
|
Other operating income/(expenses) |
|
|
244 |
|
|
|
-239 |
|
|
|
- |
|
|
|
-2 |
|
|
|
4 |
|
|
|
-36.3% |
|
Normalized EBIT |
|
|
1 861 |
|
|
|
-253 |
|
|
|
-28 |
|
|
|
-110 |
|
|
|
1 471 |
|
|
|
-6.8% |
|
Normalized EBITDA |
|
|
2 045 |
|
|
|
-253 |
|
|
|
-31 |
|
|
|
-104 |
|
|
|
1 657 |
|
|
|
-5.8% |
|
Normalized EBITDA margin |
|
|
48.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40.2% |
|
|
|
-273 bp |
|
Mexico |
|
2Q14 |
|
|
Scope |
|
|
Currency |
|
|
Organic |
|
|
2Q15 |
|
|
Organic |
|
|
|
|
|
|
|
|
|
translation |
|
|
growth |
|
|
|
|
|
growth |
|
Total volumes (thousand hls) |
|
|
10 458 |
|
|
|
- |
|
|
|
- |
|
|
|
428 |
|
|
|
10 886 |
|
|
|
4.1% |
|
Revenue |
|
|
1 297 |
|
|
|
-149 |
|
|
|
-183 |
|
|
|
90 |
|
|
|
1 055 |
|
|
|
7.9% |
|
Cost of sales |
|
|
-377 |
|
|
|
74 |
|
|
|
46 |
|
|
|
-9 |
|
|
|
-264 |
|
|
|
-2.9% |
|
Gross profit |
|
|
919 |
|
|
|
-75 |
|
|
|
-136 |
|
|
|
82 |
|
|
|
791 |
|
|
|
9.6% |
|
Distribution expenses |
|
|
-132 |
|
|
|
10 |
|
|
|
17 |
|
|
|
3 |
|
|
|
-100 |
|
|
|
2.8% |
|
Sales and marketing expenses |
|
|
-213 |
|
|
|
15 |
|
|
|
30 |
|
|
|
-5 |
|
|
|
-171 |
|
|
|
-2.2% |
|
Administrative expenses |
|
|
-123 |
|
|
|
9 |
|
|
|
16 |
|
|
|
4 |
|
|
|
-93 |
|
|
|
3.5% |
|
Other operating income/(expenses) |
|
|
71 |
|
|
|
-7 |
|
|
|
-10 |
|
|
|
3 |
|
|
|
57 |
|
|
|
4.8% |
|
Normalized EBIT |
|
|
522 |
|
|
|
-46 |
|
|
|
-82 |
|
|
|
88 |
|
|
|
484 |
|
|
|
18.4% |
|
Normalized EBITDA |
|
|
631 |
|
|
|
-50 |
|
|
|
-97 |
|
|
|
84 |
|
|
|
569 |
|
|
|
14.4% |
|
Normalized EBITDA margin |
|
|
48.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53.9% |
|
|
|
308 bp |
|
Latin America - North |
|
2Q14 |
|
|
Scope |
|
|
Currency |
|
|
Organic |
|
|
2Q15 |
|
|
Organic |
|
|
|
|
|
|
|
|
|
translation |
|
|
growth |
|
|
|
|
|
growth |
|
Total volumes (thousand hls) |
|
|
29 385 |
|
|
|
5 |
|
|
|
- |
|
|
|
-1 913 |
|
|
|
27 478 |
|
|
|
-6.5% |
|
Revenue |
|
|
2 552 |
|
|
|
1 |
|
|
|
-682 |
|
|
|
124 |
|
|
|
1 995 |
|
|
|
4.8% |
|
Cost of sales |
|
|
-937 |
|
|
|
-1 |
|
|
|
239 |
|
|
|
-56 |
|
|
|
-754 |
|
|
|
-6.0% |
|
Gross profit |
|
|
1 614 |
|
|
|
1 |
|
|
|
-443 |
|
|
|
68 |
|
|
|
1 241 |
|
|
|
4.2% |
|
Distribution expenses |
|
|
-349 |
|
|
|
- |
|
|
|
92 |
|
|
|
-8 |
|
|
|
-266 |
|
|
|
-2.6% |
|
Sales and marketing expenses |
|
|
-377 |
|
|
|
- |
|
|
|
84 |
|
|
|
43 |
|
|
|
-251 |
|
|
|
11.3% |
|
Administrative expenses |
|
|
-113 |
|
|
|
- |
|
|
|
39 |
|
|
|
-38 |
|
|
|
-112 |
|
|
|
-32.8% |
|
Other operating income/(expenses) |
|
|
151 |
|
|
|
- |
|
|
|
-43 |
|
|
|
-1 |
|
|
|
106 |
|
|
|
-0.4% |
|
Normalized EBIT |
|
|
927 |
|
|
|
1 |
|
|
|
-272 |
|
|
|
63 |
|
|
|
718 |
|
|
|
6.9% |
|
Normalized EBITDA |
|
|
1 112 |
|
|
|
1 |
|
|
|
-327 |
|
|
|
118 |
|
|
|
903 |
|
|
|
10.6% |
|
Normalized EBITDA margin |
|
|
43.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45.3% |
|
|
|
238 bp |
|
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
19
/ 21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America - South |
|
2Q14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2Q15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
7 214 |
|
|
|
145 |
|
|
|
- |
|
|
|
405 |
|
|
|
7 764 |
|
|
5.5% |
Revenue |
|
|
520 |
|
|
|
12 |
|
|
|
-60 |
|
|
|
223 |
|
|
|
696 |
|
|
42.1% |
Cost of sales |
|
|
-223 |
|
|
|
-7 |
|
|
|
27 |
|
|
|
-84 |
|
|
|
-288 |
|
|
-36.9% |
Gross profit |
|
|
297 |
|
|
|
6 |
|
|
|
-33 |
|
|
|
139 |
|
|
|
408 |
|
|
46.0% |
Distribution expenses |
|
|
-57 |
|
|
|
- |
|
|
|
7 |
|
|
|
-20 |
|
|
|
-70 |
|
|
-34.9% |
Sales and marketing expenses |
|
|
-87 |
|
|
|
- |
|
|
|
9 |
|
|
|
-15 |
|
|
|
-93 |
|
|
-17.8% |
Administrative expenses |
|
|
-21 |
|
|
|
- |
|
|
|
4 |
|
|
|
-16 |
|
|
|
-34 |
|
|
-75.1% |
Other operating income/(expenses) |
|
|
- |
|
|
|
1 |
|
|
|
-1 |
|
|
|
5 |
|
|
|
5 |
|
|
- |
Normalized EBIT |
|
|
132 |
|
|
|
6 |
|
|
|
-15 |
|
|
|
92 |
|
|
|
216 |
|
|
67.1% |
Normalized EBITDA |
|
|
176 |
|
|
|
6 |
|
|
|
-18 |
|
|
|
102 |
|
|
|
264 |
|
|
56.1% |
Normalized EBITDA margin |
|
|
33.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37.9% |
|
|
337 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
2Q14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2Q15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
13 468 |
|
|
|
-94 |
|
|
|
- |
|
|
|
-1 013 |
|
|
|
12 361 |
|
|
-7.6% |
of which AB InBev own beer |
|
|
12 985 |
|
|
|
-94 |
|
|
|
- |
|
|
|
-960 |
|
|
|
11 931 |
|
|
-7.5% |
Revenue |
|
|
1 498 |
|
|
|
-21 |
|
|
|
-337 |
|
|
|
7 |
|
|
|
1 147 |
|
|
0.4% |
Cost of sales |
|
|
-611 |
|
|
|
5 |
|
|
|
138 |
|
|
|
13 |
|
|
|
-455 |
|
|
2.1% |
Gross profit |
|
|
886 |
|
|
|
-16 |
|
|
|
-198 |
|
|
|
19 |
|
|
|
692 |
|
|
2.2% |
Distribution expenses |
|
|
-140 |
|
|
|
- |
|
|
|
34 |
|
|
|
-10 |
|
|
|
-117 |
|
|
-6.9% |
Sales and marketing expenses |
|
|
-331 |
|
|
|
-1 |
|
|
|
69 |
|
|
|
19 |
|
|
|
-245 |
|
|
5.6% |
Administrative expenses |
|
|
-93 |
|
|
|
- |
|
|
|
22 |
|
|
|
-3 |
|
|
|
-74 |
|
|
-3.0% |
Other operating income/(expenses) |
|
|
7 |
|
|
|
- |
|
|
|
- |
|
|
|
-3 |
|
|
|
4 |
|
|
-45.3% |
Normalized EBIT |
|
|
329 |
|
|
|
-16 |
|
|
|
-74 |
|
|
|
22 |
|
|
|
260 |
|
|
7.1% |
Normalized EBITDA |
|
|
439 |
|
|
|
-17 |
|
|
|
-99 |
|
|
|
21 |
|
|
|
345 |
|
|
5.1% |
Normalized EBITDA margin |
|
|
29.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30.1% |
|
|
133 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific |
|
2Q14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2Q15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
25 047 |
|
|
|
873 |
|
|
|
- |
|
|
|
-391 |
|
|
|
25 529 |
|
|
-1.6% |
Revenue |
|
|
1 492 |
|
|
|
10 |
|
|
|
-12 |
|
|
|
38 |
|
|
|
1 528 |
|
|
2.5% |
Cost of sales |
|
|
-684 |
|
|
|
-15 |
|
|
|
4 |
|
|
|
-46 |
|
|
|
-741 |
|
|
-6.7% |
Gross profit |
|
|
808 |
|
|
|
-5 |
|
|
|
-7 |
|
|
|
-9 |
|
|
|
787 |
|
|
-1.0% |
Distribution expenses |
|
|
-120 |
|
|
|
-2 |
|
|
|
1 |
|
|
|
-3 |
|
|
|
-124 |
|
|
-2.2% |
Sales and marketing expenses |
|
|
-324 |
|
|
|
-13 |
|
|
|
3 |
|
|
|
-31 |
|
|
|
-365 |
|
|
-9.6% |
Administrative expenses |
|
|
-96 |
|
|
|
18 |
|
|
|
-1 |
|
|
|
1 |
|
|
|
-78 |
|
|
1.3% |
Other operating income/(expenses) |
|
|
36 |
|
|
|
1 |
|
|
|
- |
|
|
|
15 |
|
|
|
54 |
|
|
42.3% |
Normalized EBIT |
|
|
304 |
|
|
|
- |
|
|
|
-4 |
|
|
|
-25 |
|
|
|
274 |
|
|
-8.3% |
Normalized EBITDA |
|
|
431 |
|
|
|
3 |
|
|
|
-4 |
|
|
|
-8 |
|
|
|
422 |
|
|
-2.0% |
Normalized EBITDA margin |
|
|
28.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.6% |
|
|
-130 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Export and Holding
Companies |
|
2Q14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2Q15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
1 827 |
|
|
|
-276 |
|
|
|
- |
|
|
|
141 |
|
|
|
1 692 |
|
|
9.1% |
Revenue |
|
|
614 |
|
|
|
-30 |
|
|
|
-56 |
|
|
|
-14 |
|
|
|
514 |
|
|
-2.4% |
Cost of sales |
|
|
-420 |
|
|
|
12 |
|
|
|
34 |
|
|
|
11 |
|
|
|
-363 |
|
|
2.7% |
Gross profit |
|
|
194 |
|
|
|
-16 |
|
|
|
-22 |
|
|
|
-3 |
|
|
|
151 |
|
|
-1.8% |
Distribution expenses |
|
|
-50 |
|
|
|
2 |
|
|
|
4 |
|
|
|
-4 |
|
|
|
-48 |
|
|
-8.4% |
Sales and marketing expenses |
|
|
-60 |
|
|
|
1 |
|
|
|
9 |
|
|
|
4 |
|
|
|
-47 |
|
|
6.9% |
Administrative expenses |
|
|
-111 |
|
|
|
- |
|
|
|
12 |
|
|
|
- |
|
|
|
-100 |
|
|
- |
Other operating income/(expenses) |
|
|
7 |
|
|
|
-1 |
|
|
|
-1 |
|
|
|
-1 |
|
|
|
3 |
|
|
-33.6% |
Normalized EBIT |
|
|
-22 |
|
|
|
-15 |
|
|
|
2 |
|
|
|
-5 |
|
|
|
-41 |
|
|
-13.6% |
Normalized EBITDA |
|
|
18 |
|
|
|
-15 |
|
|
|
-2 |
|
|
|
-5 |
|
|
|
-5 |
|
|
- |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
20
/ 21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB InBev Worldwide |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
224 995 |
|
|
|
3 032 |
|
|
|
- |
|
|
|
-3 865 |
|
|
|
224 162 |
|
|
-1.7% |
of which AB InBev own beer |
|
|
200 832 |
|
|
|
2 837 |
|
|
|
- |
|
|
|
-3 170 |
|
|
|
200 498 |
|
|
-1.6% |
Revenue |
|
|
22 806 |
|
|
|
-46 |
|
|
|
-2 399 |
|
|
|
1 144 |
|
|
|
21 505 |
|
|
5.1% |
Cost of sales |
|
|
-9 154 |
|
|
|
39 |
|
|
|
882 |
|
|
|
-429 |
|
|
|
-8 662 |
|
|
-4.8% |
Gross profit |
|
|
13 652 |
|
|
|
-6 |
|
|
|
-1 517 |
|
|
|
715 |
|
|
|
12 843 |
|
|
5.3% |
Distribution expenses |
|
|
-2 225 |
|
|
|
-9 |
|
|
|
285 |
|
|
|
-176 |
|
|
|
-2 125 |
|
|
-8.0% |
Sales and marketing expenses |
|
|
-3 606 |
|
|
|
-71 |
|
|
|
379 |
|
|
|
-45 |
|
|
|
-3 343 |
|
|
-1.3% |
Administrative expenses |
|
|
-1 359 |
|
|
|
36 |
|
|
|
171 |
|
|
|
-110 |
|
|
|
-1 263 |
|
|
-8.4% |
Other operating income/(expenses) |
|
|
719 |
|
|
|
-249 |
|
|
|
-95 |
|
|
|
108 |
|
|
|
483 |
|
|
23.2% |
Normalized EBIT |
|
|
7 181 |
|
|
|
-299 |
|
|
|
-777 |
|
|
|
491 |
|
|
|
6 595 |
|
|
7.2% |
Normalized EBITDA |
|
|
8 731 |
|
|
|
-277 |
|
|
|
-967 |
|
|
|
636 |
|
|
|
8 123 |
|
|
7.6% |
Normalized EBITDA margin |
|
|
38.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37.8% |
|
|
88 bp |
North America |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
60 521 |
|
|
|
-231 |
|
|
|
- |
|
|
|
-1 875 |
|
|
|
58 416 |
|
|
-3.1% |
Revenue |
|
|
8 012 |
|
|
|
-67 |
|
|
|
-108 |
|
|
|
-119 |
|
|
|
7 719 |
|
|
-1.5% |
Cost of sales |
|
|
-3 158 |
|
|
|
55 |
|
|
|
26 |
|
|
|
5 |
|
|
|
-3 073 |
|
|
0.2% |
Gross profit |
|
|
4 854 |
|
|
|
-11 |
|
|
|
-82 |
|
|
|
-114 |
|
|
|
4 646 |
|
|
-2.4% |
Distribution expenses |
|
|
-649 |
|
|
|
- |
|
|
|
21 |
|
|
|
-28 |
|
|
|
-656 |
|
|
-4.4% |
Sales and marketing expenses |
|
|
-1 074 |
|
|
|
-1 |
|
|
|
17 |
|
|
|
-28 |
|
|
|
-1 085 |
|
|
-2.6% |
Administrative expenses |
|
|
-241 |
|
|
|
-2 |
|
|
|
5 |
|
|
|
-15 |
|
|
|
-254 |
|
|
-6.4% |
Other operating income/(expenses) |
|
|
258 |
|
|
|
-238 |
|
|
|
- |
|
|
|
-1 |
|
|
|
20 |
|
|
-5.0% |
Normalized EBIT |
|
|
3 149 |
|
|
|
-252 |
|
|
|
-39 |
|
|
|
-187 |
|
|
|
2 671 |
|
|
-6.4% |
Normalized EBITDA |
|
|
3 514 |
|
|
|
-252 |
|
|
|
-43 |
|
|
|
-181 |
|
|
|
3 038 |
|
|
-5.6% |
Normalized EBITDA margin |
|
|
43.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39.4% |
|
|
-169 bp |
Mexico |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
19 376 |
|
|
|
- |
|
|
|
- |
|
|
|
615 |
|
|
|
19 991 |
|
|
3.2% |
Revenue |
|
|
2 339 |
|
|
|
-264 |
|
|
|
-292 |
|
|
|
165 |
|
|
|
1 948 |
|
|
8.0% |
Cost of sales |
|
|
-709 |
|
|
|
139 |
|
|
|
76 |
|
|
|
-15 |
|
|
|
-508 |
|
|
-2.7% |
Gross profit |
|
|
1 630 |
|
|
|
-125 |
|
|
|
-215 |
|
|
|
150 |
|
|
|
1 440 |
|
|
10.0% |
Distribution expenses |
|
|
-239 |
|
|
|
22 |
|
|
|
29 |
|
|
|
-10 |
|
|
|
-197 |
|
|
-4.5% |
Sales and marketing expenses |
|
|
-426 |
|
|
|
30 |
|
|
|
51 |
|
|
|
2 |
|
|
|
-342 |
|
|
0.6% |
Administrative expenses |
|
|
-242 |
|
|
|
15 |
|
|
|
29 |
|
|
|
1 |
|
|
|
-196 |
|
|
0.5% |
Other operating income/(expenses) |
|
|
125 |
|
|
|
-11 |
|
|
|
-16 |
|
|
|
11 |
|
|
|
109 |
|
|
9.8% |
Normalized EBIT |
|
|
848 |
|
|
|
-69 |
|
|
|
-122 |
|
|
|
155 |
|
|
|
814 |
|
|
19.9% |
Normalized EBITDA |
|
|
1 062 |
|
|
|
-76 |
|
|
|
-148 |
|
|
|
148 |
|
|
|
986 |
|
|
15.0% |
Normalized EBITDA margin |
|
|
45.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50.6% |
|
|
310 bp |
Latin America - North |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
Total volumes (thousand hls) |
|
|
60 366 |
|
|
|
12 |
|
|
|
- |
|
|
|
-1 618 |
|
|
|
58 759 |
|
|
-2.7% |
Revenue |
|
|
5 213 |
|
|
|
1 |
|
|
|
-1 168 |
|
|
|
437 |
|
|
|
4 484 |
|
|
8.4% |
Cost of sales |
|
|
-1 819 |
|
|
|
-1 |
|
|
|
394 |
|
|
|
-147 |
|
|
|
-1 573 |
|
|
-8.1% |
Gross profit |
|
|
3 394 |
|
|
|
1 |
|
|
|
-774 |
|
|
|
290 |
|
|
|
2 911 |
|
|
8.5% |
Distribution expenses |
|
|
-679 |
|
|
|
- |
|
|
|
156 |
|
|
|
-63 |
|
|
|
-587 |
|
|
-9.3% |
Sales and marketing expenses |
|
|
-702 |
|
|
|
- |
|
|
|
141 |
|
|
|
15 |
|
|
|
-547 |
|
|
2.1% |
Administrative expenses |
|
|
-250 |
|
|
|
- |
|
|
|
64 |
|
|
|
-55 |
|
|
|
-241 |
|
|
-21.8% |
Other operating income/(expenses) |
|
|
258 |
|
|
|
- |
|
|
|
-78 |
|
|
|
95 |
|
|
|
274 |
|
|
36.8% |
Normalized EBIT |
|
|
2 021 |
|
|
|
1 |
|
|
|
-492 |
|
|
|
281 |
|
|
|
1 810 |
|
|
13.9% |
Normalized EBITDA |
|
|
2 377 |
|
|
|
1 |
|
|
|
-581 |
|
|
|
374 |
|
|
|
2 170 |
|
|
15.7% |
Normalized EBITDA margin |
|
|
45.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48.4% |
|
|
309 bp |
|
|
|
PRESS RELEASE
Brussels, 30 July 2015
21
/ 21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America - South |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
17 424 |
|
|
|
338 |
|
|
|
- |
|
|
|
95 |
|
|
|
17 857 |
|
|
|
0.5% |
|
Revenue |
|
|
1 311 |
|
|
|
28 |
|
|
|
-155 |
|
|
|
429 |
|
|
|
1 614 |
|
|
|
32.1% |
|
Cost of sales |
|
|
-492 |
|
|
|
-15 |
|
|
|
63 |
|
|
|
-174 |
|
|
|
-619 |
|
|
|
-34.4% |
|
Gross profit |
|
|
819 |
|
|
|
13 |
|
|
|
-92 |
|
|
|
255 |
|
|
|
995 |
|
|
|
30.7% |
|
Distribution expenses |
|
|
-133 |
|
|
|
-1 |
|
|
|
17 |
|
|
|
-36 |
|
|
|
-153 |
|
|
|
-27.0% |
|
Sales and marketing expenses |
|
|
-173 |
|
|
|
- |
|
|
|
19 |
|
|
|
-34 |
|
|
|
-188 |
|
|
|
-19.9% |
|
Administrative expenses |
|
|
-49 |
|
|
|
- |
|
|
|
7 |
|
|
|
-23 |
|
|
|
-66 |
|
|
|
-46.9% |
|
Other operating income/(expenses) |
|
|
-6 |
|
|
|
2 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
85.5% |
|
Normalized EBIT |
|
|
458 |
|
|
|
13 |
|
|
|
-49 |
|
|
|
165 |
|
|
|
588 |
|
|
|
35.1% |
|
Normalized EBITDA |
|
|
542 |
|
|
|
13 |
|
|
|
-57 |
|
|
|
184 |
|
|
|
681 |
|
|
|
33.2% |
|
Normalized EBITDA margin |
|
|
41.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42.2% |
|
|
|
34 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
22 234 |
|
|
|
-41 |
|
|
|
- |
|
|
|
-1 536 |
|
|
|
20 657 |
|
|
|
-6.9% |
|
of which AB InBev own beer |
|
|
21 399 |
|
|
|
-41 |
|
|
|
- |
|
|
|
-1 460 |
|
|
|
19 898 |
|
|
|
-6.8% |
|
Revenue |
|
|
2 483 |
|
|
|
-17 |
|
|
|
-552 |
|
|
|
8 |
|
|
|
1 922 |
|
|
|
0.3% |
|
Cost of sales |
|
|
-1 069 |
|
|
|
1 |
|
|
|
246 |
|
|
|
25 |
|
|
|
-797 |
|
|
|
2.3% |
|
Gross profit |
|
|
1 413 |
|
|
|
-15 |
|
|
|
-306 |
|
|
|
32 |
|
|
|
1 125 |
|
|
|
2.3% |
|
Distribution expenses |
|
|
-249 |
|
|
|
-1 |
|
|
|
58 |
|
|
|
-11 |
|
|
|
-203 |
|
|
|
-4.4% |
|
Sales and marketing expenses |
|
|
-578 |
|
|
|
-1 |
|
|
|
127 |
|
|
|
14 |
|
|
|
-438 |
|
|
|
2.4% |
|
Administrative expenses |
|
|
-182 |
|
|
|
- |
|
|
|
45 |
|
|
|
-17 |
|
|
|
-154 |
|
|
|
-9.3% |
|
Other operating income/(expenses) |
|
|
8 |
|
|
|
- |
|
|
|
1 |
|
|
|
-4 |
|
|
|
5 |
|
|
|
-54.4% |
|
Normalized EBIT |
|
|
413 |
|
|
|
-17 |
|
|
|
-75 |
|
|
|
14 |
|
|
|
335 |
|
|
|
3.5% |
|
Normalized EBITDA |
|
|
632 |
|
|
|
-17 |
|
|
|
-126 |
|
|
|
10 |
|
|
|
499 |
|
|
|
1.6% |
|
Normalized EBITDA margin |
|
|
25.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26.0% |
|
|
|
33 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
39 535 |
|
|
|
5 439 |
|
|
|
- |
|
|
|
312 |
|
|
|
45 286 |
|
|
|
0.8% |
|
Revenue |
|
|
2 350 |
|
|
|
338 |
|
|
|
-36 |
|
|
|
169 |
|
|
|
2 822 |
|
|
|
7.3% |
|
Cost of sales |
|
|
-1 152 |
|
|
|
-172 |
|
|
|
16 |
|
|
|
-83 |
|
|
|
-1 391 |
|
|
|
-7.2% |
|
Gross profit |
|
|
1 198 |
|
|
|
166 |
|
|
|
-19 |
|
|
|
86 |
|
|
|
1 431 |
|
|
|
7.4% |
|
Distribution expenses |
|
|
-188 |
|
|
|
-32 |
|
|
|
3 |
|
|
|
-14 |
|
|
|
-231 |
|
|
|
-7.3% |
|
Sales and marketing expenses |
|
|
-527 |
|
|
|
-100 |
|
|
|
8 |
|
|
|
-26 |
|
|
|
-645 |
|
|
|
-4.9% |
|
Administrative expenses |
|
|
-172 |
|
|
|
23 |
|
|
|
1 |
|
|
|
-6 |
|
|
|
-155 |
|
|
|
-4.6% |
|
Other operating income/(expenses) |
|
|
59 |
|
|
|
1 |
|
|
|
- |
|
|
|
4 |
|
|
|
65 |
|
|
|
6.8% |
|
Normalized EBIT |
|
|
370 |
|
|
|
58 |
|
|
|
-7 |
|
|
|
45 |
|
|
|
465 |
|
|
|
11.9% |
|
Normalized EBITDA |
|
|
604 |
|
|
|
87 |
|
|
|
-10 |
|
|
|
82 |
|
|
|
762 |
|
|
|
13.4% |
|
Normalized EBITDA margin |
|
|
25.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.0% |
|
|
|
150 bp |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Export and Holding
Companies |
|
HY14 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
HY15 |
|
|
Organic growth |
|
Total volumes (thousand hls) |
|
|
5 539 |
|
|
|
-2 485 |
|
|
|
- |
|
|
|
143 |
|
|
|
3 197 |
|
|
|
4.7% |
|
Revenue |
|
|
1 098 |
|
|
|
-66 |
|
|
|
-89 |
|
|
|
54 |
|
|
|
997 |
|
|
|
5.2% |
|
Cost of sales |
|
|
-754 |
|
|
|
30 |
|
|
|
61 |
|
|
|
-39 |
|
|
|
-702 |
|
|
|
-5.4% |
|
Gross profit |
|
|
344 |
|
|
|
-35 |
|
|
|
-28 |
|
|
|
15 |
|
|
|
295 |
|
|
|
4.9% |
|
Distribution expenses |
|
|
-88 |
|
|
|
4 |
|
|
|
- |
|
|
|
-14 |
|
|
|
-98 |
|
|
|
-16.4% |
|
Sales and marketing expenses |
|
|
-128 |
|
|
|
2 |
|
|
|
17 |
|
|
|
12 |
|
|
|
-98 |
|
|
|
9.4% |
|
Administrative expenses |
|
|
-222 |
|
|
|
- |
|
|
|
20 |
|
|
|
5 |
|
|
|
-197 |
|
|
|
2.3% |
|
Other operating income/(expenses) |
|
|
17 |
|
|
|
-3 |
|
|
|
-2 |
|
|
|
- |
|
|
|
11 |
|
|
|
-3.3% |
|
Normalized EBIT |
|
|
-78 |
|
|
|
-33 |
|
|
|
7 |
|
|
|
18 |
|
|
|
-87 |
|
|
|
15.9% |
|
Normalized EBITDA |
|
|
- |
|
|
|
-33 |
|
|
|
-1 |
|
|
|
19 |
|
|
|
-15 |
|
|
|
58.2% |
|
Exhibit 99.2
Unaudited Interim Report
for the six-month period ended
30 June 2015
Index
|
|
|
|
|
|
|
1. |
|
Management report |
|
|
3 |
|
1.1. |
|
Selected financial figures |
|
|
3 |
|
1.2. |
|
Financial performance |
|
|
5 |
|
1.3. |
|
Liquidity position and capital resources |
|
|
10 |
|
1.4. |
|
Risks and uncertainties |
|
|
11 |
|
1.5. |
|
Events after the balance sheet date |
|
|
15 |
|
|
|
|
2. |
|
Statement of the Board of Directors |
|
|
16 |
|
|
|
|
3. |
|
Report of the statutory auditor |
|
|
17 |
|
|
|
|
4. |
|
Unaudited condensed consolidated interim financial statements |
|
|
18 |
|
4.1. |
|
Unaudited condensed consolidated interim income statement |
|
|
18 |
|
4.2. |
|
Unaudited condensed consolidated interim statement of comprehensive income |
|
|
19 |
|
4.3. |
|
Unaudited condensed consolidated interim statement of financial position |
|
|
20 |
|
4.4. |
|
Unaudited condensed consolidated interim statement of changes in equity |
|
|
21 |
|
4.5. |
|
Unaudited condensed consolidated interim statement of cash flows |
|
|
22 |
|
4.6. |
|
Notes to the unaudited condensed consolidated interim financial statements |
|
|
23 |
|
|
|
|
5. |
|
Glossary |
|
|
46 |
|
2
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with American Depositary Receipts on the New York
Stock Exchange (NYSE: BUD). It is the leading global brewer and one of the worlds top five consumer products companies. Beer, the original social network, has been bringing people together for thousands of years and the companys
portfolio of well over 200 beer brands continues to forge strong connections with consumers. This includes global brands Budweiser®, Corona® and Stella Artois®; international brands Becks®, Leffe® and Hoegaarden®; and
local champions Bud Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Victoria®, Modelo Especial®, Michelob Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Cass® and
Jupiler®. Anheuser-Busch InBevs dedication to heritage and quality originates from the Den Hoorn brewery in Leuven, Belgium dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA
since 1852. Geographically diversified with a balanced exposure to developed and developing markets, Anheuser Busch InBev leverages the collective strengths of its approximately 155 000 employees based in 25 countries worldwide. In 2014, AB InBev
realized 47.1 billion US dollar revenue. The company strives to be the Best Beer Company Bringing People Together For a Better World. For more information, please visit: www.ab-inbev.com.
The following management report should be read in conjunction with Anheuser-Busch InBevs 2014 audited consolidated financial statements
and with the unaudited condensed consolidated interim financial statements as at 30 June 2015.
In the rest of this document we refer
to Anheuser-Busch InBev as AB InBev or the company.
1.1. |
Selected financial figures |
To facilitate the understanding of AB InBevs underlying performance, the comments in this management report, unless otherwise
indicated, are based on organic and normalized numbers. Organic means the financials are analyzed eliminating the impact of changes in currencies on translation of foreign operations, and scopes. Scopes represent the impact of
acquisitions and divestitures, the start-up 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 part of the underlying performance of the business.
Whenever used in this report, the term normalized refers to
performance measures (EBITDA, EBIT, Profit, EPS, effective tax rate) before non-recurring items. Non-recurring 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 companys performance, but rather should be used in conjunction with the most directly comparable IFRS measures.
3
The tables below set out the components of AB InBevs operating income and operating
expenses, as well as the key cash flow figures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
% |
|
|
2014 |
|
|
% |
|
|
|
|
|
|
Revenue1 |
|
|
21 505 |
|
|
|
100% |
|
|
|
22 806 |
|
|
|
100% |
|
Cost of sales |
|
|
(8 662) |
|
|
|
40% |
|
|
|
(9 154) |
|
|
|
40% |
|
|
|
|
|
|
Gross profit |
|
|
12 843 |
|
|
|
60% |
|
|
|
13 652 |
|
|
|
60% |
|
Distribution expenses |
|
|
(2 125) |
|
|
|
10% |
|
|
|
(2 225) |
|
|
|
10% |
|
Sales and marketing expenses |
|
|
(3 343) |
|
|
|
16% |
|
|
|
(3 606) |
|
|
|
16% |
|
Administrative expenses |
|
|
(1 263) |
|
|
|
6% |
|
|
|
(1 359) |
|
|
|
6% |
|
Other operating income/(expenses) |
|
|
483 |
|
|
|
2% |
|
|
|
719 |
|
|
|
3% |
|
|
|
|
|
|
Normalized profit from operations (Normalized EBIT) |
|
|
6 595 |
|
|
|
31% |
|
|
|
7 181 |
|
|
|
32% |
|
Non-recurring items |
|
|
11 |
|
|
|
- |
|
|
|
(106) |
|
|
|
1% |
|
|
|
|
|
|
Profit from operations (EBIT) |
|
|
6 606 |
|
|
|
31% |
|
|
|
7 075 |
|
|
|
31% |
|
|
|
|
|
|
Depreciation, amortization and impairment |
|
|
1 527 |
|
|
|
7% |
|
|
|
1 550 |
|
|
|
7% |
|
Normalized EBITDA |
|
|
8 123 |
|
|
|
38% |
|
|
|
8 731 |
|
|
|
38% |
|
EBITDA |
|
|
8 133 |
|
|
|
38% |
|
|
|
8 625 |
|
|
|
38% |
|
|
|
|
|
|
Normalized profit attributable to equity holders of AB InBev |
|
|
4 278 |
|
|
|
20% |
|
|
|
4 030 |
|
|
|
18% |
|
Profit attributable to equity holders of AB InBev |
|
|
4 610 |
|
|
|
21% |
|
|
|
4 190 |
|
|
|
18% |
|
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
Profit |
|
|
5 361 |
|
|
|
5 010 |
|
Interest, taxes and non-cash items included in profit |
|
|
2 829 |
|
|
|
3 442 |
|
Cash flow from operating activities before changes in working capital and use of provisions |
|
|
8 190 |
|
|
|
8 452 |
|
Change in working capital |
|
|
(965) |
|
|
|
(1 121) |
|
Pension contributions and use of provisions |
|
|
(194) |
|
|
|
(210) |
|
Interest and taxes (paid)/received |
|
|
(2 336) |
|
|
|
(2 425) |
|
Dividends received |
|
|
19 |
|
|
|
25 |
|
Cash flow from operating activities |
|
|
4 714 |
|
|
|
4 721 |
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Net capex |
|
|
(1 609) |
|
|
|
(1 579) |
|
Acquisition and sale of subsidiaries, net of cash acquired/disposed of |
|
|
(220) |
|
|
|
(5 499) |
|
Proceeds from the sale of/(investments in) short-term debt securities |
|
|
(71) |
|
|
|
(39) |
|
Net of tax proceeds from the sale of assets held for sale |
|
|
228 |
|
|
|
(146) |
|
Other |
|
|
(272) |
|
|
|
(204) |
|
Cash flow from investing activities |
|
|
(1 944) |
|
|
|
(7 467) |
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Dividends paid |
|
|
(4 556) |
|
|
|
(4 299) |
|
Net (payments on)/proceeds from borrowings |
|
|
1 507 |
|
|
|
5 667 |
|
Net proceeds from the issue of share capital |
|
|
3 |
|
|
|
72 |
|
Share buyback |
|
|
(1 000) |
|
|
|
- |
|
Other (including net finance (cost)/income other than interest) |
|
|
(196) |
|
|
|
(228) |
|
Cash flow from financing activities |
|
|
(4 242) |
|
|
|
1 212 |
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
|
(1 472) |
|
|
|
(1 534) |
|
1 Turnover less excise taxes. In many jurisdictions, excise taxes make up a large proportion of the cost of beer charged to the companys customers.
4
1.2. |
Financial performance |
The tables in this management report
provide the segment information per zone for the period ended 30 June 2015 and 2014 in the format up to Normalized EBIT level that is used by management to monitor performance.
Both from an accounting and managerial perspective, AB InBev is organized along seven business segments, which includes the Global Export
and Holding business as the seventh segment. OB business is reported in the Zone Asia Pacific as from 1 April 2014 as a scope. The results of OB during the first quarter 2015 have therefore been treated as a positive scope.
The tables below provide a summary of the performance of AB InBev for the six-month period ended 30 June 2015 (in million US dollar,
except volumes in thousand hectoliters) and the related comments are based on organic numbers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB INBEV WORLDWIDE |
|
2014 |
|
|
Scope1 |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes (thousand hectoliters) |
|
|
224 995 |
|
|
|
3 032 |
|
|
|
- |
|
|
|
(3 865) |
|
|
|
224 162 |
|
|
|
(1.7)% |
|
Revenue |
|
|
22 806 |
|
|
|
(46) |
|
|
|
(2 399) |
|
|
|
1 144 |
|
|
|
21 505 |
|
|
|
5.1% |
|
Cost of sales |
|
|
(9 154) |
|
|
|
39 |
|
|
|
882 |
|
|
|
(429) |
|
|
|
(8 662) |
|
|
|
(4.8)% |
|
Gross profit |
|
|
13 652 |
|
|
|
(6) |
|
|
|
(1 517) |
|
|
|
715 |
|
|
|
12 843 |
|
|
|
5.3% |
|
Distribution expenses |
|
|
(2 225) |
|
|
|
(9) |
|
|
|
285 |
|
|
|
(176) |
|
|
|
(2 125) |
|
|
|
(8.0)% |
|
Sales and marketing expenses |
|
|
(3 606) |
|
|
|
(70) |
|
|
|
380 |
|
|
|
(45) |
|
|
|
(3 343) |
|
|
|
(1.3)% |
|
Administrative expenses |
|
|
(1 359) |
|
|
|
36 |
|
|
|
171 |
|
|
|
(110) |
|
|
|
(1 263) |
|
|
|
(8.4)% |
|
Other operating income/(expenses) |
|
|
719 |
|
|
|
(249) |
|
|
|
(95) |
|
|
|
108 |
|
|
|
483 |
|
|
|
23.2% |
|
Normalized EBIT |
|
|
7 181 |
|
|
|
(299) |
|
|
|
(777) |
|
|
|
491 |
|
|
|
6 595 |
|
|
|
7.2% |
|
Normalized EBITDA |
|
|
8 731 |
|
|
|
(277) |
|
|
|
(967) |
|
|
|
636 |
|
|
|
8 123 |
|
|
|
7.6% |
|
Normalized EBITDA margin |
|
|
38.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37.8% |
|
|
|
88 bp |
|
In the first six months of 2015 AB InBev delivered normalized EBITDA growth of 7.6%, while its normalized EBITDA
margin increased 88 bps, reaching 37.8%.
Consolidated volumes decreased 1.7%, with own beer volumes decreasing 1.6% and non-beer volumes
decreasing 3.0%. Focus Brands volumes declined by 1.1% during the six-month period ended 30 June 2015. On the same basis, the companys three Global Brands, Budweiser, Corona and Stella Artois, grew by 5.6%. Focus brands are those with the
greatest growth potential within each relevant consumer segment and to which AB InBev directs the majority of its marketing resources.
Consolidated revenue grew 5.1% to 21 505m US dollar, with revenue per hectoliter increasing 7.0% on both an organic and constant geographic
basis (i.e. eliminating the impact of faster growth in countries with lower revenue per hectoliter).
Consolidated Cost of Sales (CoS)
increased 4.8%, or 6.6% on a per hectoliter basis. On a constant geographic basis, CoS per hectoliter increased 6.4%.
VOLUMES
The table below summarizes the volume evolution per zone and the related comments are based on organic numbers. Volumes include
not only brands that AB InBev owns or licenses, but also third party brands that the company brews as a subcontractor and third party products that it sells through AB InBevs distribution network, particularly in Europe. Volumes sold by the
Global Export business are shown separately.
Effective 1 April 2014, AB InBev discontinued the reporting of volumes sold to
Constellation Brands under the temporary supply agreement (TSA), since these volumes do not form part of the underlying performance of its business. The first quarter 2014 volumes related to the TSA have therefore been treated as a negative scope.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thousand hectoliters |
|
2014 |
|
|
Scope |
|
|
Organic
growth |
|
|
2015 |
|
|
Organic
growth % |
|
|
|
|
|
|
|
North America |
|
|
60 521 |
|
|
|
(231) |
|
|
|
(1 875) |
|
|
|
58 416 |
|
|
|
(3.1)% |
|
Mexico |
|
|
19 376 |
|
|
|
- |
|
|
|
615 |
|
|
|
19 991 |
|
|
|
3.2% |
|
Latin America North |
|
|
60 366 |
|
|
|
12 |
|
|
|
(1 618) |
|
|
|
58 759 |
|
|
|
(2.7)% |
|
Latin America South |
|
|
17 424 |
|
|
|
338 |
|
|
|
95 |
|
|
|
17 857 |
|
|
|
0.5% |
|
Europe |
|
|
22 234 |
|
|
|
(41) |
|
|
|
(1 536) |
|
|
|
20 657 |
|
|
|
(6.9)% |
|
Asia Pacific |
|
|
39 535 |
|
|
|
5 439 |
|
|
|
312 |
|
|
|
45 286 |
|
|
|
0.8% |
|
Global Export and Holding Companies |
|
|
5 539 |
|
|
|
(2 485) |
|
|
|
143 |
|
|
|
3 197 |
|
|
|
4.7% |
|
AB InBev Worldwide |
|
|
224 995 |
|
|
|
3 032 |
|
|
|
(3 865) |
|
|
|
224 162 |
|
|
|
(1.7)% |
|
North America total volumes decreased 3.1%. The company estimates that the United States industry beer
sales-to-retailers adjusted for the number of selling days declined by 0.8% in 2015. The company estimates that its shipment volumes in the United States declined by 3.5% and its beer sales-to-retailers adjusted for the number of selling days
declined by 1.9%, with adverse weather conditions in key markets during the second quarter 2015. The company estimates that its total market share, based on beer sales-to-retailers adjusted for the number of selling days, declined by approximately
50 bps during 2015 compared to 2014. The company estimates that Budweiser sales-to-retailers adjusted for the number of selling days declined, with the brands share of total market down approximately 15 bps in 2015. On the same basis, the
company estimates that Bud Lights share of total market was down approximately 30 bps.
In Canada, beer volumes increased by low
single digits in 2015, on the back of a good industry performance. The company estimates it gained market share.
1 See Glossary.
5
Mexico total volumes increased 3.2%, despite a difficult comparable due to the FIFA World
Cup in 2014. The company focus brands, which represent almost 90% of its total volumes, continue to grow ahead of the total portfolio, increasing by 5.3% during 2015. Bud Light and Victoria volumes were particularly strong.
Latin America North volumes decreased 2.7%, with beer volumes decreasing 2.7% and soft drink volumes decreasing 2.6%. In Brazil, beer
volumes decreased by 3.9% and soft drink volumes decreased by 4.1%. Volumes in Brazil came under pressure in the second quarter 2015, as expected, due to a very difficult FIFA World Cup comparable and an unfavorable macroeconomic environment. The
company estimates that the volumes of its premium and near beer brands continue to do very well, finishing the first six months well ahead of last year, led by Budweiser and Skol Beats Senses.
Latin America South total volumes increased 0.5%, with beer volumes increasing 6.5% and non-beer volumes decreasing 3.4%. The
companys beer volumes in Argentina increased by low single digits as a result of a strong industry performance driven by good weather during the second quarter 2015.
Europe own beer volumes declined 6.8%, while total volumes declined 6.9%, mainly driven by a weak beer industry in Russia and Ukraine.
On the same basis, the companys beer volumes declined by mid-single digits in Belgium, were down by low single digits in Germany and its own products volumes declined by low single digits in the United Kingdom, mainly as a result of the FIFA
World Cup activations in 2014 in these countries. The company estimates its market share was marginally ahead in Germany and remained stable in Belgium.
Asia Pacific volumes grew by 0.8%. In China, own beer volumes grew by 1.9%, due in part to a very successful, first ever campaign
bridging the Calendar and the Chinese New Year celebrations built around the Budweiser brand during the first quarter 2015, partially offset by poor weather across the country and economic headwinds during the second quarter 2015. The company
estimates that the total industry volumes declined by approximately 4.5% in 2015, with most of the impact being felt in the value and core segments. The three focus brands of Budweiser, Harbin and Sedrin grew by over 6% during 2015.
The acquisition of OB closed on 1 April 2014. Year-over-year, for the period OB was consolidated, South Korean volumes were down high
single digits, due to an industry decline and an estimated market share loss in a very competitive environment.
OPERATING ACTIVITIES BY
ZONE
The tables below provide a summary of the performance of each geographical zone, for the six-month period ended
30 June 2015 (in million US dollar, except volumes in thousand hectoliters) and the related comments are based on organic numbers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AB INBEV WORLDWIDE |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
224 995 |
|
|
|
3 032 |
|
|
|
- |
|
|
|
(3 865) |
|
|
|
224 162 |
|
|
|
(1.7)% |
|
Revenue |
|
|
22 806 |
|
|
|
(46) |
|
|
|
(2 399) |
|
|
|
1 144 |
|
|
|
21 505 |
|
|
|
5.1% |
|
Cost of sales |
|
|
(9 154) |
|
|
|
39 |
|
|
|
882 |
|
|
|
(429) |
|
|
|
(8 662) |
|
|
|
(4.8)% |
|
Gross profit |
|
|
13 652 |
|
|
|
(6) |
|
|
|
(1 517) |
|
|
|
715 |
|
|
|
12 843 |
|
|
|
5.3% |
|
Distribution expenses |
|
|
(2 225) |
|
|
|
(9) |
|
|
|
285 |
|
|
|
(176) |
|
|
|
(2 125) |
|
|
|
(8.0)% |
|
Sales and marketing expenses |
|
|
(3 606) |
|
|
|
(70) |
|
|
|
380 |
|
|
|
(45) |
|
|
|
(3 343) |
|
|
|
(1.3)% |
|
Administrative expenses |
|
|
(1 359) |
|
|
|
36 |
|
|
|
171 |
|
|
|
(110) |
|
|
|
(1 263) |
|
|
|
(8.4)% |
|
Other operating income/(expenses) |
|
|
719 |
|
|
|
(249) |
|
|
|
(95) |
|
|
|
108 |
|
|
|
483 |
|
|
|
23.2% |
|
Normalized EBIT |
|
|
7 181 |
|
|
|
(299) |
|
|
|
(777) |
|
|
|
491 |
|
|
|
6 595 |
|
|
|
7.2% |
|
Normalized EBITDA |
|
|
8 731 |
|
|
|
(277) |
|
|
|
(967) |
|
|
|
636 |
|
|
|
8 123 |
|
|
|
7.6% |
|
Normalized EBITDA margin |
|
|
38.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
37.8% |
|
|
|
88 bps |
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NORTH AMERICA |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
60 521 |
|
|
|
(231) |
|
|
|
- |
|
|
|
(1 875) |
|
|
|
58 416 |
|
|
|
(3.1)% |
|
Revenue |
|
|
8 012 |
|
|
|
(67) |
|
|
|
(108) |
|
|
|
(119) |
|
|
|
7 719 |
|
|
|
(1.5)% |
|
Cost of sales |
|
|
(3 158) |
|
|
|
55 |
|
|
|
26 |
|
|
|
5 |
|
|
|
(3 073) |
|
|
|
0.2% |
|
Gross profit |
|
|
4 854 |
|
|
|
(11) |
|
|
|
(82) |
|
|
|
(114) |
|
|
|
4 646 |
|
|
|
(2.4)% |
|
Distribution expenses |
|
|
(649) |
|
|
|
- |
|
|
|
21 |
|
|
|
(28) |
|
|
|
(656) |
|
|
|
(4.4)% |
|
Sales and marketing expenses |
|
|
(1 074) |
|
|
|
(1) |
|
|
|
17 |
|
|
|
(28) |
|
|
|
(1 085) |
|
|
|
(2.6)% |
|
Administrative expenses |
|
|
(241) |
|
|
|
(2) |
|
|
|
5 |
|
|
|
(15) |
|
|
|
(254) |
|
|
|
(6.4)% |
|
Other operating income/(expenses) |
|
|
258 |
|
|
|
(238) |
|
|
|
- |
|
|
|
(1) |
|
|
|
20 |
|
|
|
(5.0)% |
|
Normalized EBIT |
|
|
3 149 |
|
|
|
(252) |
|
|
|
(39) |
|
|
|
(187) |
|
|
|
2 671 |
|
|
|
(6.4)% |
|
Normalized EBITDA |
|
|
3 514 |
|
|
|
(252) |
|
|
|
(43) |
|
|
|
(181) |
|
|
|
3 038 |
|
|
|
(5.6)% |
|
Normalized EBITDA margin |
|
|
43.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39.4% |
|
|
|
(169)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEXICO |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
19 376 |
|
|
|
- |
|
|
|
- |
|
|
|
615 |
|
|
|
19 991 |
|
|
|
3.2% |
|
Revenue |
|
|
2 339 |
|
|
|
(264) |
|
|
|
(292) |
|
|
|
165 |
|
|
|
1 948 |
|
|
|
8.0% |
|
Cost of sales |
|
|
(709) |
|
|
|
139 |
|
|
|
76 |
|
|
|
(15) |
|
|
|
(508) |
|
|
|
(2.7)% |
|
Gross profit |
|
|
1 630 |
|
|
|
(125) |
|
|
|
(215) |
|
|
|
150 |
|
|
|
1 440 |
|
|
|
10.0% |
|
Distribution expenses |
|
|
(239) |
|
|
|
22 |
|
|
|
29 |
|
|
|
(10) |
|
|
|
(197) |
|
|
|
(4.5)% |
|
Sales and marketing expenses |
|
|
(426) |
|
|
|
30 |
|
|
|
51 |
|
|
|
2 |
|
|
|
(342) |
|
|
|
0.6% |
|
Administrative expenses |
|
|
(242) |
|
|
|
15 |
|
|
|
29 |
|
|
|
1 |
|
|
|
(196) |
|
|
|
0.5% |
|
Other operating income/(expenses) |
|
|
125 |
|
|
|
(11) |
|
|
|
(16) |
|
|
|
11 |
|
|
|
109 |
|
|
|
9.8% |
|
Normalized EBIT |
|
|
848 |
|
|
|
(69) |
|
|
|
(122) |
|
|
|
155 |
|
|
|
814 |
|
|
|
19.9% |
|
Normalized EBITDA |
|
|
1 062 |
|
|
|
(76) |
|
|
|
(148) |
|
|
|
148 |
|
|
|
986 |
|
|
|
15.0% |
|
Normalized EBITDA margin |
|
|
45.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50.6% |
|
|
|
310bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATIN AMERICA NORTH |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
60 366 |
|
|
|
12 |
|
|
|
- |
|
|
|
(1 618) |
|
|
|
58 759 |
|
|
|
(2.7)% |
|
Revenue |
|
|
5 213 |
|
|
|
1 |
|
|
|
(1 168) |
|
|
|
437 |
|
|
|
4 484 |
|
|
|
8.4% |
|
Cost of sales |
|
|
(1 819) |
|
|
|
(1) |
|
|
|
394 |
|
|
|
(147) |
|
|
|
(1 573) |
|
|
|
(8.1)% |
|
Gross profit |
|
|
3 394 |
|
|
|
1 |
|
|
|
(774) |
|
|
|
290 |
|
|
|
2 911 |
|
|
|
8.5% |
|
Distribution expenses |
|
|
(679) |
|
|
|
- |
|
|
|
156 |
|
|
|
(63) |
|
|
|
(587) |
|
|
|
(9.3)% |
|
Sales and marketing expenses |
|
|
(702) |
|
|
|
- |
|
|
|
141 |
|
|
|
15 |
|
|
|
(547) |
|
|
|
2.1% |
|
Administrative expenses |
|
|
(250) |
|
|
|
- |
|
|
|
64 |
|
|
|
(55) |
|
|
|
(241) |
|
|
|
(21.8)% |
|
Other operating income/(expenses) |
|
|
258 |
|
|
|
- |
|
|
|
(78) |
|
|
|
95 |
|
|
|
274 |
|
|
|
36.8% |
|
Normalized EBIT |
|
|
2 021 |
|
|
|
1 |
|
|
|
(492) |
|
|
|
281 |
|
|
|
1 810 |
|
|
|
13.9% |
|
Normalized EBITDA |
|
|
2 377 |
|
|
|
1 |
|
|
|
(581) |
|
|
|
374 |
|
|
|
2 170 |
|
|
|
15.7% |
|
Normalized EBITDA margin |
|
|
45.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48.4% |
|
|
|
309bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LATIN AMERICA SOUTH |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
17 424 |
|
|
|
338 |
|
|
|
- |
|
|
|
95 |
|
|
|
17 857 |
|
|
|
0.5% |
|
Revenue |
|
|
1 311 |
|
|
|
28 |
|
|
|
(155) |
|
|
|
429 |
|
|
|
1 614 |
|
|
|
32.1% |
|
Cost of sales |
|
|
(492) |
|
|
|
(15) |
|
|
|
63 |
|
|
|
(174) |
|
|
|
(619) |
|
|
|
(34.4)% |
|
Gross profit |
|
|
819 |
|
|
|
13 |
|
|
|
(92) |
|
|
|
255 |
|
|
|
995 |
|
|
|
30.7% |
|
Distribution expenses |
|
|
(133) |
|
|
|
(1) |
|
|
|
17 |
|
|
|
(36) |
|
|
|
(153) |
|
|
|
(27.0)% |
|
Sales and marketing expenses |
|
|
(173) |
|
|
|
- |
|
|
|
19 |
|
|
|
(34) |
|
|
|
(188) |
|
|
|
(19.9)% |
|
Administrative expenses |
|
|
(49) |
|
|
|
- |
|
|
|
7 |
|
|
|
(23) |
|
|
|
(66) |
|
|
|
(46.9)% |
|
Other operating income/(expenses) |
|
|
(6) |
|
|
|
2 |
|
|
|
- |
|
|
|
4 |
|
|
|
- |
|
|
|
85.5% |
|
Normalized EBIT |
|
|
458 |
|
|
|
13 |
|
|
|
(49) |
|
|
|
165 |
|
|
|
588 |
|
|
|
35.1% |
|
Normalized EBITDA |
|
|
542 |
|
|
|
13 |
|
|
|
(57) |
|
|
|
184 |
|
|
|
681 |
|
|
|
33.2% |
|
Normalized EBITDA margin |
|
|
41.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42.2% |
|
|
|
34bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EUROPE |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
22 234 |
|
|
|
(41) |
|
|
|
- |
|
|
|
(1 536) |
|
|
|
20 657 |
|
|
|
(6.9)% |
|
Revenue |
|
|
2 483 |
|
|
|
(17) |
|
|
|
(552) |
|
|
|
8 |
|
|
|
1 922 |
|
|
|
0.3% |
|
Cost of sales |
|
|
(1 069) |
|
|
|
1 |
|
|
|
246 |
|
|
|
25 |
|
|
|
(797) |
|
|
|
2.3% |
|
Gross profit |
|
|
1 413 |
|
|
|
(15) |
|
|
|
(306) |
|
|
|
32 |
|
|
|
1 125 |
|
|
|
2.3% |
|
Distribution expenses |
|
|
(249) |
|
|
|
(1) |
|
|
|
58 |
|
|
|
(11) |
|
|
|
(203) |
|
|
|
(4.4)% |
|
Sales and marketing expenses |
|
|
(578) |
|
|
|
(1) |
|
|
|
127 |
|
|
|
14 |
|
|
|
(438) |
|
|
|
2.4% |
|
Administrative expenses |
|
|
(182) |
|
|
|
- |
|
|
|
45 |
|
|
|
(17) |
|
|
|
(154) |
|
|
|
(9.3)% |
|
Other operating income/(expenses) |
|
|
8 |
|
|
|
- |
|
|
|
1 |
|
|
|
(4) |
|
|
|
5 |
|
|
|
(54.4)% |
|
Normalized EBIT |
|
|
413 |
|
|
|
(17) |
|
|
|
(75) |
|
|
|
14 |
|
|
|
335 |
|
|
|
3.5% |
|
Normalized EBITDA |
|
|
632 |
|
|
|
(17) |
|
|
|
(126) |
|
|
|
10 |
|
|
|
499 |
|
|
|
1.6% |
|
Normalized EBITDA margin |
|
|
25.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26.0% |
|
|
|
33bps |
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASIA PACIFIC |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic
growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
39 535 |
|
|
|
5 439 |
|
|
|
- |
|
|
|
312 |
|
|
|
45 286 |
|
|
|
0.8% |
|
Revenue |
|
|
2 350 |
|
|
|
338 |
|
|
|
(36) |
|
|
|
169 |
|
|
|
2 822 |
|
|
|
7.3% |
|
Cost of sales |
|
|
(1 152) |
|
|
|
(172) |
|
|
|
16 |
|
|
|
(83) |
|
|
|
(1 391) |
|
|
|
(7.2)% |
|
Gross profit |
|
|
1 198 |
|
|
|
166 |
|
|
|
(19) |
|
|
|
86 |
|
|
|
1 431 |
|
|
|
7.4% |
|
Distribution expenses |
|
|
(188) |
|
|
|
(32) |
|
|
|
3 |
|
|
|
(14) |
|
|
|
(231) |
|
|
|
(7.3)% |
|
Sales and marketing expenses |
|
|
(527) |
|
|
|
(100) |
|
|
|
8 |
|
|
|
(26) |
|
|
|
(645) |
|
|
|
(4.9)% |
|
Administrative expenses |
|
|
(172) |
|
|
|
23 |
|
|
|
1 |
|
|
|
(6) |
|
|
|
(155) |
|
|
|
(4.6)% |
|
Other operating income/(expenses) |
|
|
59 |
|
|
|
1 |
|
|
|
- |
|
|
|
4 |
|
|
|
65 |
|
|
|
6.8% |
|
Normalized EBIT |
|
|
370 |
|
|
|
58 |
|
|
|
(7) |
|
|
|
45 |
|
|
|
465 |
|
|
|
11.9% |
|
Normalized EBITDA |
|
|
604 |
|
|
|
87 |
|
|
|
(10) |
|
|
|
82 |
|
|
|
762 |
|
|
|
13.4% |
|
Normalized EBITDA margin |
|
|
25.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27.0% |
|
|
|
150bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GLOBAL EXPORT AND HOLDING
COMPANIES |
|
2014 |
|
|
Scope |
|
|
Currency translation |
|
|
Organic growth |
|
|
2015 |
|
|
Organic
growth % |
|
|
|
|
|
|
|
|
Volumes |
|
|
5 539 |
|
|
|
(2 485) |
|
|
|
- |
|
|
|
143 |
|
|
|
3 197 |
|
|
|
4.7% |
|
Revenue |
|
|
1 098 |
|
|
|
(66) |
|
|
|
(89) |
|
|
|
54 |
|
|
|
997 |
|
|
|
5.2% |
|
Cost of sales |
|
|
(754) |
|
|
|
30 |
|
|
|
61 |
|
|
|
(39) |
|
|
|
(702) |
|
|
|
(5.4)% |
|
Gross profit |
|
|
344 |
|
|
|
(35) |
|
|
|
(28) |
|
|
|
15 |
|
|
|
295 |
|
|
|
4.9% |
|
Distribution expenses |
|
|
(88) |
|
|
|
4 |
|
|
|
- |
|
|
|
(14) |
|
|
|
(98) |
|
|
|
(16.4)% |
|
Sales and marketing expenses |
|
|
(128) |
|
|
|
2 |
|
|
|
17 |
|
|
|
12 |
|
|
|
(98) |
|
|
|
9.4% |
|
Administrative expenses |
|
|
(222) |
|
|
|
- |
|
|
|
20 |
|
|
|
5 |
|
|
|
(197) |
|
|
|
2.3% |
|
Other operating income/(expenses) |
|
|
17 |
|
|
|
(3) |
|
|
|
(2) |
|
|
|
- |
|
|
|
11 |
|
|
|
(3.3)% |
|
Normalized EBIT |
|
|
(78) |
|
|
|
(33) |
|
|
|
7 |
|
|
|
18 |
|
|
|
(87) |
|
|
|
15.9% |
|
Normalized EBITDA |
|
|
- |
|
|
|
(33) |
|
|
|
(1) |
|
|
|
19 |
|
|
|
(15) |
|
|
|
58% |
|
REVENUE
Consolidated revenue grew 5.1% to 21 505m US dollar, with revenue per hectoliter growth of 7.0% on both an organic and constant geographic
basis (i.e. eliminating the impact of faster growth in countries with lower revenue per hectoliter), driven by revenue management initiatives and brand mix improvements from the companys premiumization strategies.
COST OF SALES
Cost of
Sales (CoS) increased 4.8% or 6.6% on a per hectoliter basis, driven primarily by unfavorable foreign exchange transactional impacts and higher depreciation from recent investments in Brazil. The increase was also partly due to the impact of a
one-time benefit of 57m US dollar, reported in the second quarter 2014, linked to the reversal of medical expense accruals in the United States. On a constant geographic basis, CoS per hectoliter increased 6.4%.
OPERATING EXPENSES
Total operating expenses increased 3.4% in the first six months of 2015:
|
|
Distribution expenses increased 8.0% in 2015, driven mainly by increased freight rates in the United States, increased own distribution in
Brazil, which is more than offset by the increase in net revenues; the growth of the companys premium and near beer brands in Brazil; and inflationary increases in Latin America South. |
|
|
Sales and marketing expenses increased 1.3% in 2015. This compares to a growth of 13.0% in the six-month period ended 30 June 2014,
which reflected our FIFA World Cup activations. |
|
|
Administrative expenses increased by 8.4%, mainly due to the timing of variable compensation accruals. |
|
|
Other operating income was 483m US dollar in 2015 compared to 719m US dollar in 2014, mainly driven by the timing of incentives in China.
Other operating income in the six-month period ended 30 June 2014 included a one-time positive accounting adjustment of 223m US dollar, following an actuarial reassessment of future liabilities under the companys post-retirement
healthcare benefit plans in the United States. This adjustment was reported in the results of North America in 2014, as a positive scope change in other operating income, and therefore excluded from organic growth. Accordingly, a negative scope
change of the same amount has been reported in 2015. |
NORMALIZED PROFIT FROM OPERATIONS BEFORE DEPRECIATION AND
AMORTIZATION (NORMALIZED EBITDA)
Normalized EBITDA decreased by 7.0% in nominal terms and increased 7.6% organically to 8 123m
US dollar, with an EBITDA margin of 37.8%, an organic growth of 88 bps.
RECONCILIATION BETWEEN NORMALIZED EBITDA AND PROFIT ATTRIBUTABLE
TO EQUITY HOLDERS
Normalized EBITDA and EBIT are measures utilized by AB InBev to demonstrate the companys 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) Net finance cost, (v) Non-recurring net finance cost, (vi) Non-recurring items above
EBIT (including non-recurring impairment) and (vii) Depreciation, amortization and impairment.
8
Normalized EBITDA and EBIT are not accounting measures under IFRS accounting and should not be
considered as an alternative to Profit attributable to equity holders as a measure of operational performance or as an alternative to cash flow as a measure of liquidity. Normalized EBITDA and EBIT do not have a standard calculation method and AB
InBevs definition of normalized EBITDA and EBIT may not be comparable to that of other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
Notes |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
|
|
|
|
4 610 |
|
|
|
4 190 |
|
Non-controlling interest |
|
|
|
|
|
|
751 |
|
|
|
820 |
|
Profit |
|
|
|
|
|
|
5 361 |
|
|
|
5 010 |
|
Income tax expense |
|
|
9 |
|
|
|
1 125 |
|
|
|
1 066 |
|
Share of result of associates |
|
|
|
|
|
|
(8) |
|
|
|
(11) |
|
Non-recurring net finance cost/(income) |
|
|
8 |
|
|
|
(335) |
|
|
|
(238) |
|
Net finance cost |
|
|
8 |
|
|
|
463 |
|
|
|
1 248 |
|
Non-recurring items above EBIT (including non-recurring impairment) |
|
|
7 |
|
|
|
(11) |
|
|
|
106 |
|
Normalized EBIT |
|
|
|
|
|
|
6 595 |
|
|
|
7 181 |
|
Depreciation, amortization and impairment |
|
|
|
|
|
|
1 528 |
|
|
|
1 550 |
|
Normalized EBITDA |
|
|
|
|
|
|
8 123 |
|
|
|
8 731 |
|
Non-recurring 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. Details on the nature of the non-recurring items are disclosed in Note 7 Non-recurring items.
IMPACT OF FOREIGN CURRENCIES
Foreign currency exchange rates have a significant impact on AB InBevs financial statements. The following table sets forth the percentage
of its revenue realized by currency for the six-month periods ended 30 June 2015 and 30 June 2014: |
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
US dollar |
|
|
|
|
|
|
34.4% |
|
|
|
33.5% |
|
Brazilian real |
|
|
|
|
|
|
18.7% |
|
|
|
21.2% |
|
Mexican peso |
|
|
|
|
|
|
11.3% |
|
|
|
12.4% |
|
Chinese yuan |
|
|
|
|
|
|
10.0% |
|
|
|
8.5% |
|
Euro |
|
|
|
|
|
|
5.8% |
|
|
|
6.9% |
|
Argentinean peso |
|
|
|
|
|
|
4.4% |
|
|
|
3.2% |
|
Canadian dollar |
|
|
|
|
|
|
4.0% |
|
|
|
4.1% |
|
South Korean won |
|
|
|
|
|
|
3.0% |
|
|
|
1.8% |
|
Russian ruble |
|
|
|
|
|
|
1.2% |
|
|
|
1.9% |
|
Other |
|
|
|
|
|
|
7.2% |
|
|
|
6.5% |
|
The following table sets forth the
percentage of its normalized EBITDA realized by currency for the periods ended 30 June 2015 and 30 June 2014: |
|
|
|
|
|
|
2015 |
|
|
2014 |
|
|
|
|
|
US dollar |
|
|
|
|
|
|
33.6% |
|
|
|
37.1% |
|
Brazilian real |
|
|
|
|
|
|
24.9% |
|
|
|
26.6% |
|
Mexican peso |
|
|
|
|
|
|
13.8% |
|
|
|
13.9% |
|
Chinese yuan |
|
|
|
|
|
|
7.0% |
|
|
|
5.1% |
|
Argentinean peso |
|
|
|
|
|
|
4.9% |
|
|
|
3.2% |
|
Canadian dollar |
|
|
|
|
|
|
3.7% |
|
|
|
3.8% |
|
Euro |
|
|
|
|
|
|
2.8% |
|
|
|
3.0% |
|
South Korean won |
|
|
|
|
|
|
2.5% |
|
|
|
1.9% |
|
Russian ruble |
|
|
|
|
|
|
0.6% |
|
|
|
0.5% |
|
Other |
|
|
|
|
|
|
6.2% |
|
|
|
4.9% |
|
PROFIT
Normalized profit attributable to equity holders of AB InBev was 4 278m US dollar (normalized EPS 2.61 US dollar) in the first six months of
2015, compared to 4 030m US dollar (normalized EPS 2.47 US dollar) in the first six months of 2014 (see Note 14 Changes in equity and earnings per share for more details). Profit attributable to equity holders of AB InBev for the six months
of 2015 was 4 610m US dollar, compared to 4 190m US dollar for the first six months of 2014 and includes the following impacts:
|
|
|
Net finance costs (excluding non-recurring net finance items): 463m US dollar in the first half of 2015 compared to 1 248m US dollar in the
first half of 2014. Net finance cost in the six-month period ended 30 June 2015 includes a positive mark-to-market adjustment of 618m US dollar, linked to the hedging of the companys share-based payment program and positive currency
results in other financial results, as well as lower net interest expense. Net finance cost in the six-month period ended 30 June 2014 includes a positive mark-to-market adjustment of 292m US dollar, partially offset by negative currency
results. |
|
|
|
Non-recurring net finance income/(cost): 335m US dollar in the first half of 2015 compared to 238m US dollar in the first half of 2014.
Non-recurring net finance income in 2015 relates to mark-to market adjustments on derivative instruments entered into to hedge the deferred share instrument issued in a transaction related to the combination with Grupo Modelo. The deferred share
instrument has been hedged at an average price of approximately 68 euro per share. |
|
|
|
Income tax expense: 1 125m US dollar with an effective tax rate of 17.4% for the first six months of 2015 compares with 1 066m US dollar with
an effective tax rate of 17.6% in the first six months of 2014. The decrease in the effective tax rate mainly resulted from 2015 gains from certain derivatives related to the hedging of share-based payment programs and the hedging of the deferred
share instrument issued in a transaction related to the combination with Grupo Modelo, as well as changes in country profit mix. |
|
|
|
Profit attributable to non-controlling interest: 751m US dollar in the first six months of 2015, a decrease from 820m US dollar in the first
six months of 2014, with a strong operating performance of Ambev being offset by currency translation effects. |
9
1.3. |
Liquidity position and capital resources |
CASH FLOWS
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Cash flow from operating activities |
|
|
4 714 |
|
|
|
4 721 |
|
Cash flow from investing activities |
|
|
(1 944) |
|
|
|
(7 467) |
|
Cash flow from financing activities |
|
|
(4 242) |
|
|
|
1 212 |
|
Net increase/(decrease) in cash and cash equivalents |
|
|
(1 472) |
|
|
|
(1 534) |
|
Cash flows from operating activities
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Profit |
|
|
5 361 |
|
|
|
5 010 |
|
Interest, taxes and non-cash items included in profit |
|
|
2 829 |
|
|
|
3 442 |
|
Cash flow from operating activities before changes in working capital and use of provisions |
|
|
8 190 |
|
|
|
8 452 |
|
Change in working capital |
|
|
(965) |
|
|
|
(1 121) |
|
Pension contributions and use of provisions |
|
|
(194) |
|
|
|
(210) |
|
Interest and taxes (paid)/received |
|
|
(2 336) |
|
|
|
(2 425) |
|
Dividends received |
|
|
19 |
|
|
|
25 |
|
Cash flow from operating activities |
|
|
4 714 |
|
|
|
4 721 |
|
AB InBevs cash flow from operating
activities reached 4 714m US dollar in the first half of 2015 compared to 4 721m US dollar in the first half of 2014.
Changes in working capital in the first half of 2015 and 2014 reflect higher working capital levels compared to year-end levels partly due to
seasonality. Changes in working capital in the first half of 2015 are negatively impacted by the payments related to capital expenditure projects in 2014, which had on average longer payment terms.
Cash flow from investing activities
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Net capex |
|
|
(1 609) |
|
|
|
(1 579) |
|
Acquisition and sale of subsidiaries, net of cash acquired/disposed of |
|
|
(220) |
|
|
|
(5 499) |
|
Proceeds from the sale of/(investments in) short-term debt securities |
|
|
(71) |
|
|
|
(39) |
|
Net of tax proceeds from the sale of assets held for sale |
|
|
228 |
|
|
|
(146) |
|
Other |
|
|
(272) |
|
|
|
(204) |
|
Cash flow from investing activities |
|
|
(1 944) |
|
|
|
(7 467) |
|
Net cash used in investing activities was 1
944m US dollar in the first half of 2015 as compared to 7 467m US dollar in the first half of 2014. In 2014, cash outflow from investing activities mainly reflects the acquisition of OB.
AB InBevs net capital expenditures amounted to 1 609m US
dollar in the first half of 2015 and 1 579m US dollar the first half of 2014. Out of the total capital expenditures of 2015 approximately 48% was used to improve the companys production facilities while 39% was used for logistics and
commercial investments. Approximately 13% was used for improving administrative capabilities and purchase of hardware and software.
Cash flow from financing activities |
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Dividends paid |
|
|
(4 556) |
|
|
|
(4 299) |
|
Net (payments on)/proceeds from borrowings |
|
|
1 507 |
|
|
|
5 667 |
|
Net proceeds from the issue of share capital |
|
|
3 |
|
|
|
72 |
|
Share buyback |
|
|
(1 000) |
|
|
|
- |
|
Other (including net finance (cost)/income other than interest) |
|
|
(196) |
|
|
|
(228) |
|
Cash flow from financing activities |
|
|
(4 242) |
|
|
|
1 212 |
|
The cash outflow from AB InBevs financing activities amounted to 4 242m US dollar in the first half of
2015, as compared to a cash inflow of 1 212m US dollar in the first half of 2014. The cash outflow from financing activities in the six-month period ended 30 June 2015 reflects the share buyback and higher dividends paid. In 2014, cash inflow
from financing activities reflects the funding of the OB acquisition.
10
AB InBevs cash, cash equivalents and short-term investments in debt securities less bank
overdrafts as of 30 June 2015 amounted to 6 722m US dollar. As of 30 June 2015, the company had total liquidity of 14 722m US dollar, which consisted of 8.0 billion US dollar available under committed long-term credit facilities and 6
722m US dollar of cash, cash equivalents and short-term investments in debt securities less bank overdrafts. Although the company may borrow such amounts to meet its liquidity needs, the company principally relies on cash flows from operating
activities to fund the companys continuing operation.
CAPITAL RESOURCES AND EQUITY
AB InBevs net debt increased to 44 410m US dollar as at 30 June 2015, from 42 135m US dollar as at 31 December 2014.
Net debt is defined as non-current and current interest-bearing loans and borrowings and bank overdrafts minus debt securities and cash. Net
debt is a financial performance indicator that is used by AB InBevs management to highlight changes in the companys overall liquidity position. The company believes that net debt is meaningful for investors as it is one of the primary
measures AB InBevs management uses when evaluating its progress towards deleveraging.
Apart from operating results net of
capital expenditures, the net debt is mainly impacted by share buyback (1.0 billion US dollar), dividend payments to shareholders of AB InBev and Ambev (4.6 billion US dollar), the payment of interests and taxes (2.3 billion US dollar) and the
impact of changes in foreign exchange rates (680m US dollar decrease of net debt).
Net debt to normalized EBITDA increased from 2.27x for
the 12-month period ending 31 December 2014 to 2.48x on a reported basis for the 12-month period ending 30 June 2015.
Consolidated equity attributable to equity holders of AB InBev as at 30 June 2015 was 47 501m US dollar, compared to 49 972m US dollar as
at 31 December 2014. The combined effect of the weakening of mainly the closing rates of the euro, the Brazilian real, the Argentinean peso, the Mexican peso, the Canadian dollar and the South Korean won resulted in a foreign exchange
translation adjustment of (1 564)m US dollar. Further details on equity movements can be found in the unaudited condensed consolidated interim statement of changes in equity.
Further details on interest-bearing loans and borrowings, repayment schedules and liquidity risk, are disclosed in Note 15 Interest-bearing loans and borrowings and Note 18 Risks arising from financial instruments.
1.4. |
Risks and uncertainties |
Under the explicit understanding that
this is not an exhaustive list, AB InBevs major risk factors and uncertainties are listed below. There may be additional risks which AB InBev is unaware of. There may also be risks AB InBev now believes to be immaterial, but which could turn
out to have a material adverse effect. Moreover, if and to the extent that any of the risks described below materialize, they may occur in combination with other risks which would compound the adverse effect of such risks. The sequence in which the
risk factors are presented below is not indicative of their likelihood of occurrence or of the potential magnitude of their financial consequence.
RISKS RELATING TO AB INBEV AND THE BEER AND BEVERAGE INDUSTRY
AB InBev relies on the reputation of its
brands and its success depends on its ability to maintain and enhance the image and reputation of its existing products and to develop a favorable image and reputation for new products. An event, or series of events, that materially damages the
reputation of one or more of AB InBevs brands could have an adverse effect on the value of that brand and subsequent revenues from that brand or business. Further, any restrictions on the permissible advertising style, media and messages used
may constrain AB InBevs brand building potential and thus reduce the value of its brands and related revenues.
AB InBev may not be
able to protect its current and future brands and products and defend its intellectual property rights, including trademarks, patents, domain names, trade secrets and know-how, which could have a material adverse effect on its business, results of
operations, cash flows or financial condition, and in particular, on AB InBevs ability to develop its business.
Certain of AB
InBevs operations depend on independent distributors or wholesalers efforts to sell AB InBevs products and there can be no assurance that such distributors will not give priority to AB InBevs competitors. Further, any
inability of AB InBev to replace unproductive or inefficient distributors or any limitations imposed on AB InBev to purchase or own any interest in distributors or wholesalers as a result of contractual restrictions, regulatory changes, changes in
legislation or the interpretations of legislation by regulators or courts could adversely impact AB InBevs business, results of operations and financial condition.
Changes in the availability or price of raw materials, commodities, energy and water could have an adverse effect on AB InBevs results of
operations to the extent that AB InBev fails to adequately manage the risks inherent in such volatility, including if AB InBevs hedging and derivative arrangements do not effectively or completely hedge changes in commodity prices.
AB InBev relies on key third parties, including key suppliers, for a range of raw materials for beer, alcoholic beverages and soft drinks, and
for packaging material. The termination of or material change to arrangements with certain key suppliers or the failure of a key supplier to meet its contractual obligations could have a material impact on AB InBevs production, distribution
and sale of beer, alcoholic beverages and soft drinks and have a material adverse effect on AB InBevs business, results of operations, cash flows or financial condition. In addition, a number of key brand names are both licensed to third-party
brewers and used by companies over which AB InBev does not have control. Although AB InBev monitors brewing quality to ensure its high standards, to the extent that one of these key brand names or joint ventures, investments in companies in which
AB InBev does not own a controlling interest and AB InBevs licensees are subject to negative publicity, it could have a material adverse effect on AB InBevs business, results of operations, cash flows or financial condition.
Competition in its various markets and increased purchasing power of players in AB InBevs distribution channels, could cause AB InBev
to reduce prices of its products, increase capital investment, increase marketing and other expenditures or prevent AB
11
InBev from increasing prices to recover higher cost and thereby cause AB InBev to reduce margins or lose market share. Any dilution of AB InBevs brands as a result of competitive
trends could also lead to a significant erosion of AB InBevs profitability. Any of the foregoing could have a material adverse effect on AB InBevs business, financial condition and results of operations. Also, innovation faces inherent
risks, and the new products AB InBev introduces may not be successful, while competitors may be able to respond more quickly to the emerging trends, such as the increasing consumer preference for craft beers produced by smaller
microbreweries.
The continued consolidation of retailers in markets in which AB InBev operates could result in reduced profitability for
the beer industry as a whole and indirectly adversely affect AB InBevs financial results.
AB InBev could incur significant costs
as a result of compliance with, and/or violations of or liabilities under, various regulations that govern AB InBevs operations or the operations of its licensed third parties. Also, public concern about beer, alcoholic beverages and soft
drink consumption and any resulting restrictions may cause the social acceptability of beer, alcoholic beverages and soft drinks to decline significantly and consumption trends to shift away from these products, which would have a material adverse
effect on AB InBevs business, financial condition and results of operations.
AB InBevs operations are subject to environmental
regulations, which could expose it to significant compliance costs and litigation relating to environmental issues.
Antitrust and
competition laws and changes in such laws or in the interpretation and enforcement thereof, as well as being subject to regulatory scrutiny, could affect AB InBevs business or the businesses of its subsidiaries.
In recent years, there has been increased public and political attention directed at the alcoholic beverage and food and soft drinks industries,
as a result of health care concerns related to the harmful use of alcohol (including drunk driving, drinking while pregnant and excessive, abusive and underage drinking) and to health concerns such as diabetes and obesity related to the
overconsumption of food and soft drinks. Negative publicity regarding AB InBevs products and brands, publication of studies indicating a significant risk in using AB InBevs products or changes in consumer perceptions in relation to
AB InBevs products generally could adversely affect the sale and consumption of AB InBevs products and could harm its business, results of operations, cash flows or financial condition.
Demand for AB InBevs products may be adversely affected by changes in consumer preferences and tastes. Consumer preferences and tastes can
change in unpredictable ways. Failure by AB InBev to anticipate or respond adequately to changes in consumer preferences and tastes or to developments in new forms of media and marketing could adversely impact AB InBevs business, results of
operations and financial condition.
The beer and beverage industry may be subject to adverse changes in taxation, which makes up a large
proportion of the cost of beer charged to consumers in many jurisdictions. Increases in excise and other indirect taxes applicable to AB InBevs products tend to adversely affect AB InBevs revenue or margins, both by reducing overall
consumption and by encouraging consumers to switch to other categories of beverages. Minimum pricing is another form of fiscal regulation that can affect AB InBevs profitability. Furthermore, AB InBev may be subject to increased taxation on
its operations by national, local or foreign authorities, to higher corporate income tax rates or to new or modified taxation regulations and requirements. For example, the work being carried out by the Organisation for Economic Co-operation and
Development on base erosion and profit shifting or ongoing initiatives at the European Union level as a response to increasing globalization of trade and business operations could result in changes in tax treaties, the introduction of new
legislation, updates to existing legislation, or changes to regulatory interpretations of existing legislation, any of which could impose additional taxes on businesses . An increase in excise taxes or other taxes could adversely affect the
financial results of AB InBev as well as its results of operations.
Seasonal consumption cycles and adverse weather conditions in the
markets in which AB InBev operates may result in fluctuations in demand for AB InBevs products and therefore may have an adverse impact on AB InBevs business, results of operations and financial condition.
Climate change, or legal, regulatory or market measures to address climate change, could have a long-term, material adverse impact on AB
InBevs business and results of operations. Further, water scarcity or poor water quality may affect AB InBev by increasing production costs and capacity constraints, which could adversely affect AB InBevs business and results of
operations. Additionally, AB InBevs inability to meet its compliance obligations under EU emissions trading regulations may also have an adverse impact on AB InBevs business and results of operations.
A substantial portion of AB InBevs operations are carried out in developing European, Asian and Latin American markets.
AB InBevs operations and equity investments in these markets are subject to the customary risks of operating in developing countries, which include, amongst others, political instability or insurrection, external interference, changes in
government policy, political and economic changes, changes in the relations between the countries, actions of governmental authorities affecting trade and foreign investment, regulations on repatriation of funds, interpretation and application of
local laws and regulations, enforceability of intellectual property and contract rights, local labor conditions and regulations, potential political and economic uncertainty, application of exchange controls, nationalization or expropriation, crime
and lack of law enforcement as well as financial risks, which include risk of liquidity, inflation, devaluation, price volatility, currency convertibility and country default. Such developing market risks could adversely impact AB InBevs
business, results of operations and financial condition.
Economic and political events in Argentina may adversely affect the companys
Argentinean operations. The political instability, fluctuations in the economy, governmental actions concerning the economy of Argentina, the devaluation of the Argentine peso, inflation and deteriorating macroeconomic conditions in Argentina could
have, and may continue to have, a material adverse effect on AB InBevs Latin America South operations, financial condition and results. If the economic or political situation in Argentina deteriorates, AB InBev Latin America South operations
may be subject to additional restrictions under new Argentinean foreign exchange, export repatriation or expropriation regimes that could adversely affect AB InBevs liquidity and operations, and its ability to access funds from Argentina.
Political events in Ukraine and related sanctions adopted by the European Union and the United States targeting Russia and Crimea may adversely
affect AB InBevs operations in Ukraine, Russia and elsewhere in the region. AB InBev owns and operates beer production facilities in Ukraine and Russia. Continued political instability, civil strife, deteriorating macroeconomic conditions, the
12
devaluation of the Russian ruble, the devaluation of the Ukrainian hryvnia and actual or threatened military action in the region could have a material adverse effect on AB InBevs
operations in the region and on the results of operations of AB InBevs Europe segment, and may result in impairment charges on goodwill or other intangible assets.
If any of AB InBevs products is defective or found to contain contaminants, AB InBev may be subject to product recalls or other
liabilities. Although AB InBev maintains insurance policies against certain product liability (but not product recall) risks, it may not be able to enforce its rights in respect of these policies and any amounts it recovers may not be sufficient to
offset any damage it may suffer, which could adversely impact its business, reputation, prospects, results of operations and financial condition.
AB InBev may not be able to obtain the necessary funding for its future capital or refinancing needs and may face financial risks due to its
level of debt and uncertain market conditions. AB InBev may be required to raise additional funds for AB InBevs future capital needs or refinance its current indebtedness through public or private financing, strategic relationships or other
arrangements and there can be no assurance that the funding, if needed, will be available on attractive terms, or at all. AB InBev has incurred substantial indebtedness by entering into several senior credit facilities and accessing the bond markets
from time to time based on its financial needs. The portion of AB InBevs consolidated balance sheet represented by debt will remain significantly higher as compared to its historical position. AB InBevs increased level of debt could have
significant adverse consequences on AB InBev, including (i) increasing its vulnerability to general adverse economic and industry conditions, (ii) limiting its flexibility in planning for, or reacting to, changes in its business and
the industry in which AB InBev operates; (iii) impairing its ability to obtain additional financing in the future, (iv) requiring AB InBev to issue additional equity (potentially under unfavorable market conditions), and
(v) placing AB InBev at a competitive disadvantage compared to its competitors that have less debt. AB InBevs ability to repay and renegotiate its outstanding indebtedness will be dependent upon market conditions. Unfavorable conditions,
including recent significant price volatility and liquidity disruptions in the global credit markets, as well as downward pressure on credit capacity for certain issuers without regard to those issuers underlying financial strength, could
increase costs beyond what is currently anticipated. Such costs could have a material adverse impact on AB InBevs cash flows, results of operations or both. Further, AB InBev may restrict the amount of dividends it will pay as a result of
AB InBevs level of debt and its strategy to give priority to deleveraging. Also, a credit rating downgrade could have a material adverse effect on AB InBevs ability to finance its ongoing operations or to refinance its existing
indebtedness. In addition, a failure of AB InBev to refinance all or a substantial amount of its debt obligations when they become due, or more generally a failure to raise additional equity capital or debt financing or to realize proceeds from
asset sales when needed, would have a material adverse effect on its financial condition and results of operations.
AB InBevs results
could be negatively affected by increasing interest rates. Although AB InBev enters into interest rate swap agreements to manage its interest rate risk and also enters into cross-currency interest rate swap agreements to manage both its foreign
currency risk and interest-rate risk on interest-bearing financial liabilities, there can be no assurance that such instruments will be successful in reducing the risks inherent in exposures to interest rate
fluctuations.
AB InBevs results of operations are affected by fluctuations in exchange rates. Any change in exchange rates between
AB InBevs operating companies functional currencies and the US dollar will affect its consolidated income statement and balance sheet when the results of those operating companies are translated into US dollar for reporting purposes
as translational exposures are not hedged. Also, there can be no assurance that the policies in place to manage commodity price and transactional foreign currency risks to protect AB InBevs exposure will be able to successfully hedge against
the effects of such foreign exchange exposure, especially over the long-term. Further, the use of financial instruments to mitigate currency risk and any other efforts taken to better match the effective currencies of AB InBevs liabilities to
its cash flows could result in increased costs.
AB InBevs shares currently trade on Euronext Brussels in euros and its American
Depositary Shares trade on the New York Stock Exchange in US dollar. Fluctuations in the exchange rate between the US dollar and the euro may result in temporary differences between the value of its American Depositary Shares and the value of its
ordinary shares, which may result in heavy trading by investors seeking to exploit such differences.
The ability of AB InBevs
subsidiaries to distribute cash upstream may be subject to various conditions and limitations. The inability to obtain sufficient cash flows from its domestic and foreign subsidiaries and affiliated companies could adversely impact
AB InBevs ability to pay dividends and otherwise negatively impact its business, results of operations and financial condition.
Failure to generate significant cost savings and margin improvement through initiatives for improving operational efficiencies could adversely
affect AB InBevs profitability and AB InBevs ability to achieve its financial goals.
AB InBev may not be able to successfully
carry out further acquisitions and business integrations or restructuring. AB InBev cannot make further acquisitions unless it can identify suitable candidates and agree on terms with them. AB InBev may not be able to successfully complete such
transactions. In addition, such transactions may involve the assumption of certain liabilities, which may have a potential impact on AB InBevs financial risk profile. Further, the price AB InBev may pay in any future acquisition may prove to
be too high as a result of various factors.
The combination with Grupo Modelo has exposed AB InBev to risks related to significant costs
and potential difficulties in the integration of Grupo Modelo into AB InBevs existing operations and the extraction of synergies from the transaction. Although the anticipated business growth opportunities, cost savings, increased profits,
synergies and other benefits contemplated by the Modelo combination are significant, there can be no assurance that the Modelo combination will fully realize these benefits in the time expected. Any failures, material delays or unexpected costs of
the integration process could therefore have a material adverse effect on AB InBevs business, results of operations and financial condition.
AB InBev reached a settlement with the U.S. Department of Justice in relation to the combination with Grupo Modelo, which included a three-year
transition services agreement to ensure the smooth transition of the operation of the Piedras Negras brewery as well as certain distribution guarantees for Constellation Brands, Inc. in the fifty states of the United States, the District of Columbia
and Guam. AB InBevs compliance with its obligations under the settlement agreement is monitored by the U.S. Department of Justice and the Monitoring Trustee appointed by them. Were AB InBev to fail to fulfill its obligations under the
settlement, whether intentionally or inadvertently, AB InBev could be subject to monetary fines
13
If the business of AB InBev does not develop as expected, impairment charges on goodwill or
other intangible assets may be incurred in the future which could be significant and which could have an adverse effect on AB InBevs results of operations and financial condition.
Although AB InBevs operations in Cuba are quantitatively immaterial, its overall business reputation may suffer or it may face additional
regulatory scrutiny as a result of Cuba being a target of US economic and trade sanctions. If investors decide to liquidate or otherwise divest their investments in companies that have operations of any magnitude in Cuba, the market in and value of
AB InBevs securities could be adversely impacted. In addition, US legislation known as the Helms-Burton Act authorizes private lawsuits for damages against anyone who traffics in property confiscated without compensation by the
Government of Cuba from persons who at the time were, or have since become, nationals of the United States. Although this section of the Helms-Burton Act is currently suspended, claims accrue notwithstanding the suspension and may be asserted if the
suspension is discontinued. AB InBev has received notice of a claim purporting to be made under the Helms-Burton Act. AB InBev is currently unable to express a view as to the validity of such claims, or as to the standing of the claimants to pursue
them.
AB InBev may not be able to recruit or retain key personnel and successfully manage them, which could disrupt AB InBevs
business and have an unfavorable material effect on AB InBevs financial position, its income from operations and its competitive position.
Further, AB InBev may be exposed to labor strikes, disputes and work stoppages or slowdowns, within its operations or those of its suppliers, or
an interruption or shortage of raw materials for any other reason that could lead to a negative impact on AB InBevs costs, earnings, financial condition, production level and ability to operate its business. AB InBevs production may also
be affected by work stoppages or slowdowns that affect its suppliers, distributors and retail delivery/logistics providers as a result of disputes under existing collective labor agreements with labor unions, in connection with negotiations of new
collective labor agreements, as a result of supplier financial distress, or for other reasons. A work stoppage or slowdown at AB InBevs facilities could interrupt the transport of raw materials from its suppliers or the transport of its
products to its customers. Such disruptions could put a strain on AB InBevs relationships with suppliers and clients and may have lasting effects on its business even after the disputes with its labor force have been resolved, including as a
result of negative publicity.
AB InBev relies on information technology systems to process, transmit, and store electronic information.
Although AB InBev takes various actions to prevent cyber-attacks and to minimize potential technology disruptions, such disruptions could impact AB InBevs business. For example, if outside parties gained access to AB InBevs
confidential data or strategic information and appropriated such information or made such information public, this could harm AB InBevs reputation or its competitive advantage. More generally, technology disruptions could have a material
adverse effect on AB InBevs business, results of operations, cash flows or financial condition.
AB InBevs business and
operating results could be negatively impacted by social, technical, natural, physical or other disasters.
Although AB InBev maintains
insurance policies to cover various risks, it also uses self-insurance for most of its insurable risks. Should an uninsured loss or a loss in excess of insured limits occur, this could adversely impact AB InBevs business, results of operations
and financial condition.
AB InBev is exposed to the risk of a global recession or a recession in one or more of its key markets, and to
credit and capital market volatility and economic financial crisis, which could result in lower revenue and reduced profit, as beer consumption in many of the jurisdictions in which AB InBev operates is closely linked to general economic conditions
and changes in disposable income. A continuation or worsening of the levels of market disruption and volatility seen in the recent past could have an adverse effect on AB InBevs ability to access capital, on its business, results of operations
and financial condition, and on the market price of its shares and American Depositary Shares.
AB InBev operates its business and markets
its products in certain countries that are less developed, have less stability in legal systems and financial markets, and are potentially more corrupt business environments than Europe and the United States, and therefore present greater political,
economic and operational risks. Although AB InBev is committed to conducting business in a legal and ethical manner in compliance with local and international statutory requirements and standards applicable to its business, there is a risk that
the employees or representatives of AB InBevs subsidiaries, affiliates, associates, joint ventures/operations or other business interests may take actions that violate applicable laws and regulations that generally prohibit the making of
improper payments to foreign government officials for the purpose of obtaining or keeping business, including laws relating to the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions such as
the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act.
The audit report included in AB InBevs annual report is prepared by
an auditor who is not inspected by the US Public Company Accounting Oversight Board (PCAOB). This lack of PCAOB inspections in Belgium prevents the PCAOB from regularly evaluating audits and quality control procedures of any auditors operating in
Belgium, including AB InBevs auditors. As a result, US and other investors may be deprived of the benefits of PCAOB inspections.
AB
InBev is now, and may in the future be, a party to legal proceedings and claims, including collective suits (class actions), and significant damages may be asserted against it. Given the inherent uncertainty of litigation, it is possible that AB
InBev might incur liabilities as a consequence of the proceedings and claims brought against it, including those that are not currently believed by it to be reasonably possible, which could have a material adverse effect on AB InBevs
business, results of operations, cash flows or financial position. Important contingencies are disclosed in Note 20 Contingencies of the unaudited condensed consolidated interim financial statements.
RISKS ARISING FROM FINANCIAL INSTRUMENTS
Note 27 of the 2014 consolidated financial statements and Note 18 of the 2015 unaudited condensed consolidated interim financial statements on
Risks arising from financial instruments contain detailed information on the companys exposures to financial risks and its risk management policies.
14
1.5. |
Events after the balance sheet date |
Please refer to Note 22
Events after the balance sheet date of the unaudited condensed consolidated interim financial statements.
15
2. |
Statement of the Board of Directors |
The Board of Directors of Anheuser-Busch InBev SA/NV certifies, on behalf and for the account of the company, that, to their knowledge,
(a) the condensed consolidated interim financial statements which have been prepared in accordance with the International Financial Reporting Standard on interim financial statements (IAS 34), as issued by the International Accounting Standard
Board (IASB) and as adopted by the European Union, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the entities included in the consolidation as a whole and (b) the interim
management report includes a fair overview of the information required under Article 13, §§ 5 and 6 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated
market.
16
3. |
Report of the statutory auditor |
STATUTORY AUDITORS REPORT TO
THE BOARD OF DIRECTORS OF ANHEUSER-BUSCH INBEV NV/SA ON THE REVIEW OF THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2015
Introduction
We have reviewed the accompanying condensed consolidated interim statement of financial position of Anheuser-Busch InBev NV/SA and its
subsidiaries as of 30 June 2015 and the related condensed consolidated interim statements of income, comprehensive income, changes in equity and cash flows for the six month-period then ended, as well as the explanatory notes. The board of directors
is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB) and
as adopted by the European Union. Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.
Scope of Review
We
conducted our review in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of
making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards
on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our
review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements have not been prepared, in all material respects, in accordance with IAS 34 Interim Financial
Reporting, as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union.
Sint-Stevens-Woluwe, 29 July 2015
The Statutory Auditor
PwC Bedrijfsrevisoren BCVBA
Represented by
|
/s/ Koen Hens |
Koen Hens |
Bedrijfsrevisor / Réviseur dEntreprises |
17
4. |
Unaudited condensed consolidated interim financial statements |
4.1. |
Unaudited condensed consolidated interim income statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar, except earnings per shares in US dollar |
|
Notes |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
Revenue |
|
|
|
|
|
|
21 505 |
|
|
|
22 806 |
|
Cost of sales |
|
|
|
|
|
|
(8 662) |
|
|
|
(9 154) |
|
Gross profit |
|
|
|
|
|
|
12 843 |
|
|
|
13 652 |
|
|
|
|
|
Distribution expenses |
|
|
|
|
|
|
(2 125) |
|
|
|
(2 225) |
|
Sales and marketing expenses |
|
|
|
|
|
|
(3 343) |
|
|
|
(3 606) |
|
Administrative expenses |
|
|
|
|
|
|
(1 263) |
|
|
|
(1 359) |
|
Other operating income/(expenses) |
|
|
|
|
|
|
483 |
|
|
|
719 |
|
Profit from operations before non-recurring items |
|
|
|
|
|
|
6 595 |
|
|
|
7 181 |
|
|
|
|
|
Restructuring (including impairment losses) |
|
|
7 |
|
|
|
(55) |
|
|
|
(51) |
|
Business and asset disposal (including impairment losses) |
|
|
7 |
|
|
|
147 |
|
|
|
13 |
|
Acquisition costs business combinations |
|
|
7 |
|
|
|
(4) |
|
|
|
(68) |
|
Judicial settlement |
|
|
7 |
|
|
|
(77) |
|
|
|
- |
|
Profit from operations |
|
|
|
|
|
|
6 606 |
|
|
|
7 075 |
|
|
|
|
|
Finance cost |
|
|
8 |
|
|
|
(1 235) |
|
|
|
(1 493) |
|
Finance income |
|
|
8 |
|
|
|
772 |
|
|
|
245 |
|
Non-recurring net finance income/(cost) |
|
|
8 |
|
|
|
335 |
|
|
|
238 |
|
Net finance cost |
|
|
|
|
|
|
(128) |
|
|
|
(1 010) |
|
|
|
|
|
Share of result of associates |
|
|
|
|
|
|
8 |
|
|
|
11 |
|
Profit before tax |
|
|
|
|
|
|
6 486 |
|
|
|
6 076 |
|
|
|
|
|
Income tax expense |
|
|
9 |
|
|
|
(1 125) |
|
|
|
(1 066) |
|
Profit |
|
|
|
|
|
|
5 361 |
|
|
|
5 010 |
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
Equity holders of AB InBev |
|
|
|
|
|
|
4 610 |
|
|
|
4 190 |
|
Non-controlling interest |
|
|
|
|
|
|
751 |
|
|
|
820 |
|
|
|
|
|
Basic earnings per share |
|
|
14 |
|
|
|
2.81 |
|
|
|
2.57 |
|
Diluted earnings per share |
|
|
14 |
|
|
|
2.76 |
|
|
|
2.52 |
|
|
|
|
|
Basic earnings per share before non-recurring items1 |
|
|
14 |
|
|
|
2.61 |
|
|
|
2.47 |
|
Diluted earnings per share before non-recurring items1 |
|
|
14 |
|
|
|
2.56 |
|
|
|
2.42 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
1 Basic
earnings per share and diluted earnings per share before non-recurring items are not defined metrics in IFRS. Refer to Note 14 Changes in equity and earnings per share for more details.
18
4.2. |
Unaudited condensed consolidated interim statement of comprehensive income |
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Profit |
|
|
5 361 |
|
|
|
5 010 |
|
|
|
|
Other comprehensive income: items that will not be reclassified to profit or loss: |
|
|
|
|
|
|
|
|
Re-measurements of post-employment benefits |
|
|
1 |
|
|
|
49 |
|
|
|
|
Other comprehensive income: Items that may be reclassified subsequently to profit or loss: |
|
|
|
|
|
|
|
|
Translation reserves (gains/(losses)) |
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
|
|
(1 807) |
|
|
|
765 |
|
Effective portion of changes in fair value of net investment hedges |
|
|
(106) |
|
|
|
95 |
|
Cash flow hedges |
|
|
|
|
|
|
|
|
Recognized in equity |
|
|
(125) |
|
|
|
65 |
|
Removed from equity and included in profit or loss |
|
|
(36) |
|
|
|
(105) |
|
|
|
|
(2 074) |
|
|
|
820 |
|
|
|
|
Other comprehensive income, net of tax |
|
|
(2 073) |
|
|
|
869 |
|
|
|
|
Total comprehensive income |
|
|
3 288 |
|
|
|
5 879 |
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Equity holders of AB InBev |
|
|
2 862 |
|
|
|
4 939 |
|
Non-controlling interest |
|
|
426 |
|
|
|
940 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
19
4.3. |
Unaudited condensed consolidated interim statement of financial position |
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
Million US dollar |
|
Notes |
|
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
10 |
|
|
|
19 295 |
|
|
|
20 263 |
|
Goodwill |
|
|
11 |
|
|
|
68 465 |
|
|
|
70 758 |
|
Intangible assets |
|
|
12 |
|
|
|
29 535 |
|
|
|
29 923 |
|
Investments in associates and joint ventures |
|
|
|
|
|
|
139 |
|
|
|
110 |
|
Investment securities |
|
|
|
|
|
|
135 |
|
|
|
118 |
|
Deferred tax assets |
|
|
|
|
|
|
1 497 |
|
|
|
1 058 |
|
Employee benefits |
|
|
|
|
|
|
12 |
|
|
|
10 |
|
Trade and other receivables |
|
|
|
|
|
|
1 664 |
|
|
|
1 769 |
|
|
|
|
|
|
|
|
120 742 |
|
|
|
124 009 |
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
|
13 |
|
|
|
331 |
|
|
|
301 |
|
Inventories |
|
|
|
|
|
|
3 112 |
|
|
|
2 974 |
|
Income tax receivable |
|
|
|
|
|
|
230 |
|
|
|
359 |
|
Trade and other receivables |
|
|
|
|
|
|
7 395 |
|
|
|
6 449 |
|
Cash and cash equivalents |
|
|
13 |
|
|
|
6 453 |
|
|
|
8 357 |
|
Assets held for sale |
|
|
|
|
|
|
92 |
|
|
|
101 |
|
|
|
|
|
|
|
|
17 613 |
|
|
|
18 541 |
|
Total assets |
|
|
|
|
|
|
138 355 |
|
|
|
142 550 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Issued capital |
|
|
14 |
|
|
|
1 736 |
|
|
|
1 736 |
|
Share premium |
|
|
|
|
|
|
17 620 |
|
|
|
17 620 |
|
Reserves |
|
|
|
|
|
|
(7 274) |
|
|
|
(4 558) |
|
Retained earnings |
|
|
|
|
|
|
35 419 |
|
|
|
35 174 |
|
Equity attributable to equity holders of AB InBev |
|
|
|
|
|
|
47 501 |
|
|
|
49 972 |
|
|
|
|
|
Non-controlling interest |
|
|
|
|
|
|
3 942 |
|
|
|
4 285 |
|
|
|
|
|
|
|
|
51 443 |
|
|
|
54 257 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and borrowings |
|
|
15 |
|
|
|
44 067 |
|
|
|
43 630 |
|
Employee benefits |
|
|
|
|
|
|
2 965 |
|
|
|
3 050 |
|
Deferred tax liabilities |
|
|
|
|
|
|
12 179 |
|
|
|
12 701 |
|
Trade and other payables |
|
|
17 |
|
|
|
1 026 |
|
|
|
1 070 |
|
Provisions |
|
|
|
|
|
|
809 |
|
|
|
634 |
|
|
|
|
|
|
|
|
61 046 |
|
|
|
61 085 |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdrafts |
|
|
13 |
|
|
|
62 |
|
|
|
41 |
|
Interest-bearing loans and borrowings |
|
|
15 |
|
|
|
7 375 |
|
|
|
7 451 |
|
Income tax payable |
|
|
|
|
|
|
759 |
|
|
|
629 |
|
Trade and other payables |
|
|
17 |
|
|
|
17 522 |
|
|
|
18 922 |
|
Provisions |
|
|
|
|
|
|
148 |
|
|
|
165 |
|
|
|
|
|
|
|
|
25 866 |
|
|
|
27 208 |
|
Total equity and liabilities |
|
|
|
|
|
|
138 355 |
|
|
|
142 550 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial statements.
20
4.4. |
Unaudited condensed consolidated interim statement of changes in equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of AB InBev |
|
|
|
|
|
|
|
Million US dollar |
|
Issued capital |
|
|
Share premium |
|
|
Treasury
shares |
|
|
Share-
based payment reserves |
|
|
Translation reserves |
|
|
Hedging reserves |
|
|
Post- employment benefits |
|
|
Deferred
share instrument |
|
|
Retained earnings |
|
|
Total |
|
|
Non-controlling interest |
|
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As per 1 January 2014 |
|
|
1 735 |
|
|
|
17 608 |
|
|
|
(874) |
|
|
|
885 |
|
|
|
(962) |
|
|
|
455 |
|
|
|
(968) |
|
|
|
1 482 |
|
|
|
31 004 |
|
|
|
50 365 |
|
|
|
4 943 |
|
|
|
55 308 |
|
Profit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4 190 |
|
|
|
4 190 |
|
|
|
820 |
|
|
|
5 010 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations (gains/(losses)) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
715 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
715 |
|
|
|
145 |
|
|
|
860 |
|
Cash flow hedges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2) |
|
|
|
(38) |
|
|
|
(40) |
|
Re-measurements of post-employment benefits |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
36 |
|
|
|
- |
|
|
|
- |
|
|
|
36 |
|
|
|
13 |
|
|
|
49 |
|
Total comprehensive income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
715 |
|
|
|
(2) |
|
|
|
36 |
|
|
|
- |
|
|
|
4 190 |
|
|
|
4 939 |
|
|
|
940 |
|
|
|
5 879 |
|
Shares issued |
|
|
1 |
|
|
|
12 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
13 |
|
|
|
- |
|
|
|
13 |
|
Dividends |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(44) |
|
|
|
(3 088) |
|
|
|
(3 132) |
|
|
|
(944) |
|
|
|
(4 076) |
|
Treasury shares |
|
|
- |
|
|
|
- |
|
|
|
27 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27 |
|
|
|
- |
|
|
|
27 |
|
Share-based payments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
87 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
87 |
|
|
|
9 |
|
|
|
96 |
|
Scope and other changes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
93 |
|
|
|
93 |
|
|
|
(90) |
|
|
|
3 |
|
As per 30 June 2014 |
|
|
1 736 |
|
|
|
17 620 |
|
|
|
(847) |
|
|
|
972 |
|
|
|
(247) |
|
|
|
453 |
|
|
|
(932) |
|
|
|
1 438 |
|
|
|
32 199 |
|
|
|
52 392 |
|
|
|
4 858 |
|
|
|
57 250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity holders of AB InBev |
|
|
|
|
|
|
|
Million US dollar |
|
Issued capital |
|
|
Share premium |
|
|
Treasury
shares |
|
|
Share-
based payment reserves |
|
|
Translation reserves |
|
|
Hedging reserves |
|
|
Post- employment benefits |
|
|
Deferred
share instrument |
|
|
Retained earnings |
|
|
Total |
|
|
Non-controlling interest |
|
|
Total equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As per 1 January 2015 |
|
|
1 736 |
|
|
|
17 620 |
|
|
|
(819) |
|
|
|
1 080 |
|
|
|
(5 336) |
|
|
|
557 |
|
|
|
(1 447) |
|
|
|
1 407 |
|
|
|
35 174 |
|
|
|
49 972 |
|
|
|
4 285 |
|
|
|
54 257 |
|
Profit |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4 610 |
|
|
|
4 610 |
|
|
|
751 |
|
|
|
5 361 |
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations (gains/(losses)) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 564) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 564) |
|
|
|
(349) |
|
|
|
(1 913) |
|
Cash flow hedges |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(184) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(184) |
|
|
|
23 |
|
|
|
(161) |
|
Re-measurements of post-employment benefits |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
Total comprehensive income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1 564) |
|
|
|
(184) |
|
|
|
- |
|
|
|
- |
|
|
|
4 610 |
|
|
|
2 862 |
|
|
|
426 |
|
|
|
3 288 |
|
Dividends |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(62) |
|
|
|
(4 329) |
|
|
|
(4 391) |
|
|
|
(692) |
|
|
|
(5 083) |
|
Treasury shares |
|
|
- |
|
|
|
- |
|
|
|
(987) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(987) |
|
|
|
- |
|
|
|
(987) |
|
Share-based payments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
81 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
81 |
|
|
|
9 |
|
|
|
90 |
|
Scope and other changes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(36) |
|
|
|
(36) |
|
|
|
(86) |
|
|
|
(122) |
|
As per 30 June 2015 |
|
|
1 736 |
|
|
|
17 620 |
|
|
|
(1 806) |
|
|
|
1 161 |
|
|
|
(6 900) |
|
|
|
373 |
|
|
|
(1 447) |
|
|
|
1 345 |
|
|
|
35 419 |
|
|
|
47 501 |
|
|
|
3 942 |
|
|
|
51 443 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated interim financial
statements.
21
4.5. Unaudited condensed consolidated interim statement of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
Notes |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Profit |
|
|
|
|
|
|
5 361 |
|
|
|
5 010 |
|
Depreciation, amortization and impairment |
|
|
|
|
|
|
1 527 |
|
|
|
1 550 |
|
Impairment losses on receivables, inventories and other assets |
|
|
|
|
|
|
42 |
|
|
|
33 |
|
Additions/(reversals) in provisions and employee benefits |
|
|
|
|
|
|
173 |
|
|
|
(198) |
|
Net finance cost/(income) |
|
|
8 |
|
|
|
128 |
|
|
|
1 010 |
|
Loss/(gain) on sale of property, plant and equipment and intangible assets |
|
|
|
|
|
|
(1) |
|
|
|
(8) |
|
Loss/(gain) on sale of subsidiaries, associates and assets held for sale |
|
|
|
|
|
|
(146) |
|
|
|
(16) |
|
Equity-settled share-based payment expense |
|
|
16 |
|
|
|
106 |
|
|
|
123 |
|
Income tax expense |
|
|
9 |
|
|
|
1 125 |
|
|
|
1 066 |
|
Other non-cash items included in the profit |
|
|
|
|
|
|
(117) |
|
|
|
(107) |
|
Share of result of associates |
|
|
|
|
|
|
(8) |
|
|
|
(11) |
|
Cash flow from operating activities before changes in working capital and use of provisions |
|
|
|
|
|
|
8 190 |
|
|
|
8 452 |
|
Decrease/(increase) in trade and other receivables |
|
|
|
|
|
|
(273) |
|
|
|
(673) |
|
Decrease/(increase) in inventories |
|
|
|
|
|
|
(322) |
|
|
|
(532) |
|
Increase/(decrease) in trade and other payables |
|
|
17 |
|
|
|
(370) |
|
|
|
84 |
|
Pension contributions and use of provisions |
|
|
|
|
|
|
(194) |
|
|
|
(210) |
|
Cash generated from operations |
|
|
|
|
|
|
7 031 |
|
|
|
7 121 |
|
|
|
|
|
Interest paid |
|
|
|
|
|
|
(1 060) |
|
|
|
(1 242) |
|
Interest received |
|
|
|
|
|
|
156 |
|
|
|
130 |
|
Dividends received |
|
|
|
|
|
|
19 |
|
|
|
25 |
|
Income tax paid |
|
|
|
|
|
|
(1 432) |
|
|
|
(1 313) |
|
CASH FLOW FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
4 714 |
|
|
|
4 721 |
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of property, plant and equipment and of intangible assets |
|
|
|
|
|
|
66 |
|
|
|
90 |
|
Sale of subsidiaries, net of cash disposed of |
|
|
6 |
|
|
|
1 |
|
|
|
17 |
|
Acquisition of subsidiaries, net of cash acquired |
|
|
6 |
|
|
|
(221) |
|
|
|
(5 516) |
|
Purchase of non-controlling interest |
|
|
14 |
|
|
|
(181) |
|
|
|
(57) |
|
Acquisition of property, plant and equipment and of intangible assets |
|
|
10/12 |
|
|
|
(1 675) |
|
|
|
(1 669) |
|
Net of tax proceeds from the sale of assets held for sale |
|
|
|
|
|
|
228 |
|
|
|
(146) |
|
Net proceeds from sale/(acquisition) of investment in short-term debt securities |
|
|
13 |
|
|
|
(71) |
|
|
|
(39) |
|
Net proceeds from sale/(acquisition) of other assets |
|
|
|
|
|
|
(45) |
|
|
|
(153) |
|
Net repayments/(payments) of loans granted |
|
|
|
|
|
|
(46) |
|
|
|
6 |
|
CASH FLOW FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
(1 944) |
|
|
|
(7 467) |
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from the issue of share capital |
|
|
14 |
|
|
|
3 |
|
|
|
72 |
|
Proceeds from borrowings |
|
|
|
|
|
|
9 645 |
|
|
|
14 164 |
|
Payments on borrowings |
|
|
|
|
|
|
(8 138) |
|
|
|
(8 497) |
|
Cash net finance (costs)/income other than interests |
|
|
|
|
|
|
(196) |
|
|
|
(228) |
|
Share buyback |
|
|
|
|
|
|
(1 000) |
|
|
|
- |
|
Dividends paid |
|
|
|
|
|
|
(4 556) |
|
|
|
(4 299) |
|
CASH FLOW FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
(4 242) |
|
|
|
1 212 |
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
|
|
|
|
|
(1 472) |
|
|
|
(1 534) |
|
|
|
|
|
Cash and cash equivalents less bank overdrafts at beginning of year |
|
|
|
|
|
|
8 316 |
|
|
|
9 833 |
|
Effect of exchange rate fluctuations |
|
|
|
|
|
|
(453) |
|
|
|
83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents less bank overdrafts at end of period |
|
|
13 |
|
|
|
6 391 |
|
|
|
8 382 |
|
The accompanying notes are an integral
part of these unaudited condensed consolidated interim financial statements.
22
4.6. |
Notes to the unaudited condensed consolidated interim financial statements |
|
|
|
|
|
Corporate information |
|
|
1 |
|
|
|
Statement of compliance |
|
|
2 |
|
|
|
Summary of significant accounting policies |
|
|
3 |
|
|
|
Use of estimates and judgments |
|
|
4 |
|
|
|
Segment reporting |
|
|
5 |
|
|
|
Acquisitions and disposals of subsidiaries |
|
|
6 |
|
|
|
Non-recurring items |
|
|
7 |
|
|
|
Finance cost and income |
|
|
8 |
|
|
|
Income taxes |
|
|
9 |
|
|
|
Property, plant and equipment |
|
|
10 |
|
|
|
Goodwill |
|
|
11 |
|
|
|
Intangible assets |
|
|
12 |
|
|
|
Cash and cash equivalents and investments in short-term debt securities |
|
|
13 |
|
|
|
Changes in equity and earnings per share |
|
|
14 |
|
|
|
Interest-bearing loans and borrowings |
|
|
15 |
|
|
|
Share-based payments |
|
|
16 |
|
|
|
Trade and other payables |
|
|
17 |
|
|
|
Risks arising from financial instruments |
|
|
18 |
|
|
|
Collateral and contractual commitments for the acquisition of property, plant and equipment, loans to customer and other |
|
|
19 |
|
|
|
Contingencies |
|
|
20 |
|
|
|
Related parties |
|
|
21 |
|
|
|
Events after the balance sheet date |
|
|
22 |
|
23
Anheuser-Busch InBev is a publicly
traded company (Euronext: ABI) based in Leuven, Belgium, with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). It is the leading global brewer and one of the worlds top five consumer products companies. Beer, the
original social network, has been bringing people together for thousands of years and the companys portfolio of well over 200 beer brands continues to forge strong connections with consumers. This includes global brands Budweiser®,
Corona® and Stella Artois®; international brands Becks®, Leffe® and Hoegaarden®; and local champions Bud Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Victoria®, Modelo Especial®, Michelob
Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Cass® and Jupiler®. Anheuser-Busch InBevs dedication to heritage and quality originates from the Den Hoorn brewery in Leuven, Belgium
dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA since 1852. Geographically diversified with a balanced exposure to developed and developing markets, Anheuser Busch InBev leverages
the collective strengths of approximately 155 000 employees based in 25 countries worldwide. In 2014, AB InBev realized 47.1 billion US dollar revenue. The company strives to be the Best Beer Company Bringing People Together For a Better World.
The unaudited condensed consolidated interim financial statements of the company for the six-month period ended 30 June 2015 comprise the
company and its subsidiaries (together referred to as AB InBev or the company) and the companys interest in associates and jointly controlled entities. The condensed consolidated interim financial statements as of
30 June 2015 and for the six-month periods ended 30 June 2015 and 30 June 2014 are unaudited; however, in the opinion of the company, the interim data include all adjustments, consisting of only normally recurring adjustments,
necessary for a fair statement of the results for the interim period.
The unaudited condensed consolidated interim financial statements
were authorized for issue by the Board of Directors on 29 July 2015.
2. |
STATEMENT OF COMPLIANCE |
The unaudited condensed
consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34 Interim Financial Reporting as issued by the International Accounting Standard Board (IASB) and as
adopted by the European Union. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the company as at and for the year ended
31 December 2014. AB InBev did not early apply any new IFRS requirements that were not yet effective in 2015 and did not apply any European carve-outs from IFRS.
3. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The accounting
policies applied are consistent with those applied in the annual consolidated financial statements ended 31 December 2014, except as described below.
(A) |
SUMMARY OF CHANGES IN ACCOUNTING POLICIES |
A number of new standards, amendment to
standards and new interpretations became mandatory for the first time for the financial year beginning 1 January 2015, and have not been listed in these unaudited condensed consolidated interim financial statements because of either their
non-applicability to or their immateriality to AB InBevs consolidated financial statements.
FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are accounted for at exchange rates prevailing at the date of the transactions. Monetary assets and liabilities
denominated in foreign currencies are translated at the balance sheet date rate. Gains and losses resulting from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in foreign
currencies are recognized in the income statement. Non-monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Non-monetary assets and liabilities
denominated in foreign currencies that are stated at fair value are translated to US dollar at foreign exchange rates ruling at the dates the fair value was determined.
TRANSLATION OF THE RESULTS AND FINANCIAL POSITION OF FOREIGN OPERATIONS
Assets and liabilities of foreign operations are translated to US dollar at foreign exchange rates prevailing at the balance sheet date. Income
statements of foreign operations, excluding foreign entities in hyperinflationary economies, are translated to US dollar at exchange rates for the year approximating the foreign exchange rates prevailing at the dates of the transactions. The
components of shareholders equity are translated at historical rates. Exchange differences arising from the translation of shareholders equity to US dollar at period-end exchange rates are taken to other comprehensive income
(translation reserves).
In hyperinflationary economies, re-measurement of the local currency denominated non-monetary assets, liabilities,
income statement accounts as well as equity accounts is made by applying a general price index. These re-measured accounts are used for conversion into US dollar at the closing exchange rate. AB InBev did not operate in hyperinflationary economies
in 2014 and 2015.
24
EXCHANGE RATES
The most important exchange rates that have been used in preparing the financial statements are:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing rate |
|
|
Average rate |
|
1 US dollar equals: |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
30 June 2015 |
|
|
30 June 2014 |
|
|
|
|
|
|
Argentinean peso |
|
|
9.086551 |
|
|
|
8.552034 |
|
|
|
8.742260 |
|
|
|
7.825394 |
|
Brazilian real |
|
|
3.102600 |
|
|
|
2.656197 |
|
|
|
2.971548 |
|
|
|
2.309346 |
|
Canadian dollar |
|
|
1.236840 |
|
|
|
1.158305 |
|
|
|
1.233027 |
|
|
|
1.095976 |
|
Chinese yuan |
|
|
6.199475 |
|
|
|
6.206895 |
|
|
|
6.217463 |
|
|
|
6.172767 |
|
Euro |
|
|
0.893735 |
|
|
|
0.823655 |
|
|
|
0.891833 |
|
|
|
0.727973 |
|
South Korean won |
|
|
1 118.57 |
|
|
|
1 090.93 |
|
|
|
1 096.97 |
|
|
|
1 038.48 |
|
Mexican Peso |
|
|
15.567584 |
|
|
|
14.718112 |
|
|
|
15.065764 |
|
|
|
13.104824 |
|
Pound sterling |
|
|
0.635803 |
|
|
|
0.641544 |
|
|
|
0.656221 |
|
|
|
0.599758 |
|
Russian ruble |
|
|
55.525285 |
|
|
|
56.256744 |
|
|
|
56.645896 |
|
|
|
35.128745 |
|
Ukrainian hryvnia |
|
|
21.015707 |
|
|
|
15.768560 |
|
|
|
21.447057 |
|
|
|
10.372349 |
|
IFRS WITH EFFECTIVE APPLICATION FOR ANNUAL PERIODS AFTER 1ST JANUARY 2015:
To the extent that new IFRS requirements are expected to be
applicable in the future, they have been summarized hereafter. For six-month period ended 30 June 2015, they have not been applied in preparing these unaudited condensed consolidated interim financial statements.
IFRS 9 Financial Instruments:
IFRS 9 Financial Instruments is the standard issued as part of a wider project to replace IAS 39. IFRS 9 introduces a logical approach
for the classification of financial assets, which is driven by cash flow characteristics and the business model in which an asset is held; defines a new expected-loss impairment model that will require more timely recognition of expected credit
losses; and introduces a substantially-reformed model for hedge accounting, with enhanced disclosures about risk management activity. The new hedge accounting model represents a significant overhaul of hedge accounting that aligns the accounting
treatment with risk management activities. IFRS 9 also removes the volatility in profit or loss that was caused by changes in the credit risk of liabilities elected to be measured at fair value. IFRS 9 will be effective for annual periods beginning
on or after 1 January 2018. Early application is permitted.
IFRS 15 Revenue from Contracts with Customers:
The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts
that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions
that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements. IFRS 15 is effective for an entitys first annual IFRS financial statements for
periods beginning on or after 1 January 2018. Early application is permitted.
Other Standards, Interpretations and Amendments to
Standards
A number of other amendments to standards are effective for annual periods beginning after 1 January 2015, and have
not been listed above because of either their non-applicability to or their immateriality to AB InBevs consolidated financial statements.
4. |
USE OF ESTIMATES AND JUDGMENTS |
The preparation of
financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both
current and future periods.
Although each of its significant accounting policies reflects judgments, assessments or estimates,
AB InBev believes that the following accounting policies reflect the most critical judgments, estimates and assumptions that are important to its business operations and the understanding of its results: business combinations, intangible
assets, goodwill, impairment, provisions, share-based payments, employee benefits and accounting for current and deferred tax.
The fair
values of acquired identifiable intangibles are based on an assessment of future cash flows. Impairment analyses of goodwill and indefinite-lived intangible assets are performed annually and whenever a triggering event has occurred, in order to
determine whether the carrying value exceeds the recoverable amount. These calculations are based on estimates of future cash flows.
The
company uses its judgment to select a variety of methods including the discounted cash flow method and option valuation models and makes assumptions about the fair value of financial instruments that are mainly based on market conditions existing at
each balance sheet date.
Actuarial assumptions are established to anticipate future events and are used in calculating pension and other
long-term employee benefit expense and liability. These factors include assumptions with respect to interest rates, rates of increase in health care costs, rates of future compensation increases, turnover rates, and life expectancy.
25
The company is subject to income tax in numerous jurisdictions. Significant judgment is
required in determining the worldwide provision for income tax. There are some transactions and calculations for which the ultimate tax determination is uncertain. Some subsidiaries within the group are involved in tax audits and local
enquiries usually in relation to prior years. Investigations and negotiations with local tax authorities are ongoing in various jurisdictions at the balance sheet date and, by their nature, these can take considerable time to conclude. In assessing
the amount of any income tax provisions to be recognized in the financial statements, estimation is made of the expected successful settlement of these matters. Estimates of interest and penalties on tax liabilities are also recorded. Where the
final outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period such determination is made.
Judgments made by management in the application of IFRS that have a significant effect on the financial statements and estimates with a
significant risk of material adjustment in the next year are further discussed in the relevant notes hereafter.
In preparing these
unaudited condensed consolidated interim financial statements, the significant judgments made by management in applying the companys accounting policies and the key sources of estimating uncertainty were the same as those that applied to the
consolidated financial statements as at and for the year ended 31 December 2014.
26
Segment information is
presented by geographical segments, consistent with the information that is available and evaluated regularly by the chief operating decision maker. AB InBev operates its business through seven business segments. Regional and operating company
management is responsible for managing performance, underlying risks, and effectiveness of operations. Internally, AB InBevs management uses performance indicators such as normalized profit from operations (normalized EBIT) and normalized
EBITDA as measures of segment performance and to make decisions regarding allocation of resources.
All figures in the table
below are stated in million US dollar, except volume (million hls) and Normalized EBITDA margin (in %). The information presented is for the six-month period ended 30 June, except for segment assets (non-current) comparatives at
31 December 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
|
Mexico |
|
|
Latin America North |
|
|
Latin America South |
|
|
Europe |
|
|
Asia Pacific |
|
|
Global Export and
Holding Companies |
|
|
Consolidated |
|
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume |
|
|
58 |
|
|
|
61 |
|
|
|
20 |
|
|
|
19 |
|
|
|
59 |
|
|
|
60 |
|
|
|
18 |
|
|
|
17 |
|
|
|
21 |
|
|
|
22 |
|
|
|
45 |
|
|
|
40 |
|
|
|
3 |
|
|
|
6 |
|
|
|
224 |
|
|
|
225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
7 719 |
|
|
|
8 012 |
|
|
|
1 948 |
|
|
|
2 339 |
|
|
|
4 484 |
|
|
|
5 213 |
|
|
|
1 614 |
|
|
|
1 311 |
|
|
|
1 922 |
|
|
|
2 483 |
|
|
|
2 822 |
|
|
|
2 350 |
|
|
|
997 |
|
|
|
1 098 |
|
|
|
21 505 |
|
|
|
22 806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized EBITDA |
|
|
3 038 |
|
|
|
3 514 |
|
|
|
986 |
|
|
|
1 062 |
|
|
|
2 170 |
|
|
|
2 377 |
|
|
|
681 |
|
|
|
542 |
|
|
|
499 |
|
|
|
632 |
|
|
|
762 |
|
|
|
604 |
|
|
|
(15) |
|
|
|
- |
|
|
|
8 123 |
|
|
|
8 731 |
|
Normalized EBITDA margin % |
|
|
39.4% |
|
|
|
43.9% |
|
|
|
50.6% |
|
|
|
45.4% |
|
|
|
48.4% |
|
|
|
45.6% |
|
|
|
42.2% |
|
|
|
41.3% |
|
|
|
26.0% |
|
|
|
25.5% |
|
|
|
27.0% |
|
|
|
25.7% |
|
|
|
- |
|
|
|
- |
|
|
|
37.8% |
|
|
|
38.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and impairment |
|
|
(368) |
|
|
|
(366) |
|
|
|
(173) |
|
|
|
(213) |
|
|
|
(360) |
|
|
|
(356) |
|
|
|
(94) |
|
|
|
(84) |
|
|
|
(164) |
|
|
|
(219) |
|
|
|
(296) |
|
|
|
(234) |
|
|
|
(72) |
|
|
|
(78) |
|
|
|
(1 527) |
|
|
|
(1 550) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized profit from operations (EBIT) |
|
|
2 670 |
|
|
|
3 149 |
|
|
|
813 |
|
|
|
848 |
|
|
|
1 811 |
|
|
|
2 021 |
|
|
|
587 |
|
|
|
458 |
|
|
|
335 |
|
|
|
413 |
|
|
|
465 |
|
|
|
370 |
|
|
|
(86) |
|
|
|
(78) |
|
|
|
6 595 |
|
|
|
7 181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring items (refer Note 7) |
|
|
138 |
|
|
|
(2) |
|
|
|
(21) |
|
|
|
(26) |
|
|
|
(77) |
|
|
|
(1) |
|
|
|
(5) |
|
|
|
(2) |
|
|
|
(8) |
|
|
|
(15) |
|
|
|
(8) |
|
|
|
(58) |
|
|
|
(7) |
|
|
|
(1) |
|
|
|
11 |
|
|
|
(106) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit from operations (EBIT) |
|
|
2 808 |
|
|
|
3 146 |
|
|
|
792 |
|
|
|
822 |
|
|
|
1 734 |
|
|
|
2 020 |
|
|
|
582 |
|
|
|
455 |
|
|
|
327 |
|
|
|
398 |
|
|
|
457 |
|
|
|
312 |
|
|
|
(93) |
|
|
|
(79) |
|
|
|
6 606 |
|
|
|
7 075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net finance income/(cost) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(128) |
|
|
|
(1 010) |
|
Share of results of associates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
11 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 125) |
|
|
|
(1 066) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 361 |
|
|
|
5 010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets (non-current) |
|
|
61 459 |
|
|
|
61 693 |
|
|
|
23 578 |
|
|
|
25 129 |
|
|
|
13 330 |
|
|
|
14 581 |
|
|
|
2 632 |
|
|
|
2 645 |
|
|
|
4 640 |
|
|
|
4 847 |
|
|
|
12 971 |
|
|
|
13 053 |
|
|
|
2 132 |
|
|
|
2 062 |
|
|
|
120 742 |
|
|
|
124 009 |
|
Gross capex |
|
|
302 |
|
|
|
143 |
|
|
|
99 |
|
|
|
124 |
|
|
|
489 |
|
|
|
588 |
|
|
|
161 |
|
|
|
201 |
|
|
|
164 |
|
|
|
168 |
|
|
|
382 |
|
|
|
388 |
|
|
|
81 |
|
|
|
19 |
|
|
|
1 677 |
|
|
|
1 632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
6. |
ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES |
The table below
summarizes the impact of the acquisitions on the Statement of financial position and cash flows of AB InBev for 30 June 2015 and 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Million US dollar |
|
2015
Acquisitions |
|
|
2014
Acquisitions |
|
|
2015
Disposals |
|
|
2014
Disposals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
15 |
|
|
|
812 |
|
|
|
(20) |
|
|
|
- |
|
Intangible assets |
|
|
29 |
|
|
|
1 182 |
|
|
|
- |
|
|
|
- |
|
Trade and other receivables |
|
|
- |
|
|
|
47 |
|
|
|
- |
|
|
|
- |
|
Deferred tax assets |
|
|
- |
|
|
|
55 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
5 |
|
|
|
104 |
|
|
|
- |
|
|
|
- |
|
Trade and other receivables |
|
|
5 |
|
|
|
299 |
|
|
|
- |
|
|
|
- |
|
Cash and cash equivalents |
|
|
- |
|
|
|
247 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and borrowings |
|
|
(1) |
|
|
|
(499) |
|
|
|
- |
|
|
|
- |
|
Trade and other payables |
|
|
- |
|
|
|
(183) |
|
|
|
- |
|
|
|
- |
|
Employee benefits |
|
|
- |
|
|
|
(27) |
|
|
|
- |
|
|
|
- |
|
Deferred tax liabilities |
|
|
- |
|
|
|
(294) |
|
|
|
- |
|
|
|
- |
|
Provisions |
|
|
- |
|
|
|
- |
|
|
|
(2) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing loans and borrowings |
|
|
(2) |
|
|
|
(34) |
|
|
|
- |
|
|
|
- |
|
Income tax payable |
|
|
- |
|
|
|
(105) |
|
|
|
- |
|
|
|
- |
|
Trade and other payables |
|
|
4 |
|
|
|
(635) |
|
|
|
- |
|
|
|
- |
|
Net identifiable assets and liabilities |
|
|
55 |
|
|
|
969 |
|
|
|
(22) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill on acquisitions |
|
|
63 |
|
|
|
4 818 |
|
|
|
- |
|
|
|
- |
|
Loss/(gain) on disposal |
|
|
- |
|
|
|
- |
|
|
|
(8) |
|
|
|
- |
|
Acquisition-date fair value of the previously held equity interest |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(17) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consideration to be paid |
|
|
- |
|
|
|
(25) |
|
|
|
- |
|
|
|
- |
|
Net cash paid on prior years acquisitions |
|
|
103 |
|
|
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consideration paid/(received), satisfied in cash |
|
|
221 |
|
|
|
5 763 |
|
|
|
(30) |
|
|
|
(17) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash (acquired)/ disposed of |
|
|
- |
|
|
|
(247) |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow/(inflow) |
|
|
221 |
|
|
|
5 516 |
|
|
|
(30) |
|
|
|
(17) |
|
2015 ACQUISITIONS AND DISPOSALS
During the first six months of 2015, the company undertook a series of acquisitions and disposals with no significant impact in the
companys condensed consolidated interim income statement.
During 2015, AB InBev purchased 103m US dollar Grupo Modelos shares
through the Trust established on 4 June 2013 to accept further tender of shares by Grupo Modelo shareholders over a period of up to 25 months. By 30 June 2015, AB InBev owned approximately 99% of Grupo Modelos outstanding shares and
0.4 billion US dollar is deposited with the Trust and are reported as restricted cash. AB InBev recognized a liability for the Grupo Modelo shares it did not acquire by 30 June 2015 (see also Note 13 Cash and cash equivalents and investments
in short-term debt securities and Note 17 Trade and other payables).
2014 ACQUISITIONS
The following transactions took place in 2014:
Oriental Brewery acquisition
On 1 April 2014, AB InBev completed the acquisition of Oriental Brewery (OB), the leading brewer in South Korea. The
acquisition returned OB to the AB InBev portfolio, after AB InBev sold the company in July 2009, following the combination of InBev and Anheuser-Busch, in support of the companys deleveraging commitment.
The enterprise value for the transaction was 5.8 billion US dollar, and as a result of an agreement entered into in 2009, AB InBev also received
approximately 320m US dollar in cash at closing from this transaction, subject to closing adjustments according to the terms of the transaction.
The transaction resulted in 4.3 billion US dollar of goodwill allocated primarily to the Korean business. The majority of the intangible asset
valuation related to brands with indefinite life. These mainly include the Cass brand family and have been fair valued for a total amount of 1.1 billion US dollar.
A deferred tax liability has been accrued on most fair value adjustments considering a tax rate of 24.2%.
28
2014 Other acquisitions
In 2014, Anheuser-Busch InBev completed the acquisition of the Siping Ginsber Draft Beer Co., Ltd. (Ginsber), which owns the Ginsber
brand in China, as well as the Blue Point brewery (Long Island) and a wholesaler in the United States.
The aggregate purchase price of such
acquisitions was approximately 591 m US dollar.
2014 DISPOSALS
During the first six months of 2014, AB InBev collected 17m US dollar proceeds from prior years sale of the Central European operations to
CVC Capital Partners.
IAS 1 Presentation of financial
statements requires material items of income and expense to be disclosed separately. Non-recurring items are items, which in managements judgment need to be disclosed by virtue of their size or incidence in order for the user to obtain a
proper understanding of the financial information. The company considers these items to be of significance in nature, and accordingly, management has excluded these from their segment measure of performance as noted in Note 5 Segment
Reporting.
The non-recurring items included in the income statement are as follows:
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Restructuring (including impairment losses) |
|
|
(55) |
|
|
|
(51) |
|
Acquisition costs business combinations |
|
|
(4) |
|
|
|
(68) |
|
Business and asset disposal (including impairment losses) |
|
|
147 |
|
|
|
13 |
|
Judicial settlement |
|
|
(77) |
|
|
|
- |
|
Impact on profit from operations |
|
|
11 |
|
|
|
(106) |
|
|
|
|
Non-recurring net finance income/(cost) |
|
|
335 |
|
|
|
238 |
|
Non-recurring taxes |
|
|
(45) |
|
|
|
26 |
|
Non-recurring non-controlling interest |
|
|
31 |
|
|
|
2 |
|
Net impact on profit attributable to equity holders of AB InBev |
|
|
332 |
|
|
|
160 |
|
The non-recurring restructuring charges for the six-month period ended 30 June 2015 total (55)m US dollar.
These charges primarily relate to the integration of Grupo Modelo and to organizational alignments in the Europe zone. These changes aim to eliminate overlap or duplicated processes, taking into account the right match of employee profiles with the
new organizational requirements. These one-time expenses, as a result of the series of decisions, provide the company with a lower cost base in addition to a stronger focus on AB InBevs core activities, quicker
decision-making and improvements to efficiency, service and quality.
Business and asset disposals
(including impairment losses) resulted in a net gain of 147m US dollar as per 30 June 2015. This gain consists primarily of compensation for the termination of agreements with Crown Imports for the distribution of Grupo Modelo products through
some of the companys wholly-owned distributors in the US, and with Monster, for the distribution of its brands in the US.
Acquisition
costs of business combinations amount to (4)m US dollar by the end of June 2015.
The judicial settlement relates to the settlement reached
between CADE, the Brazilian Antitrust Authority and Ambev on the Tô Contigo customer loyalty program - see Note 20 Contingencies.
The non-recurring restructuring charges for the six-month period ended 30 June 2014 total (51)m US dollar. These charges primarily relate
to the integration of Grupo Modelo and to organizational alignments in Asia Pacific and Europe zones.
Acquisition costs of business
combinations amount to (68)m US dollar by the end of June 2014 primarily relating to cost incurred for the acquisition of OB that closed on 1 April 2014.
The business and asset disposals (including impairment losses) resulted in a net gain of 13m US dollar as per 30 June 2014 mainly
attributable to the additional proceeds from prior years sale.
The company also incurred non-recurring finance income of 335m US
dollar for the six-month period ended 30 June 2015 (30 June 2014: 238m US dollar) - see Note 8 Finance cost and income.
All
the above amounts are before income taxes. The non-recurring items as of 30 June 2015 increased income taxes by 45m US dollar (30 June 2014: 26m US dollar decrease of income taxes).
Non-controlling interest on the non-recurring items amounts to 31m US dollar for the six-month period ended 30 June 2015 (30 June 2014: 2m
US dollar).
29
8. |
FINANCE COST AND INCOME |
FINANCE COSTS
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Interest expense |
|
|
(947) |
|
|
|
(1 049) |
|
Capitalization of borrowing costs |
|
|
12 |
|
|
|
21 |
|
Net interest on net defined benefit liabilities |
|
|
(60) |
|
|
|
(58) |
|
Accretion expense |
|
|
(149) |
|
|
|
(158) |
|
Net foreign exchange losses (net of the effect of foreign exchange derivative instruments) |
|
|
- |
|
|
|
(170) |
|
Tax on financial transactions |
|
|
(25) |
|
|
|
(21) |
|
Other financial costs, including bank fees |
|
|
(66) |
|
|
|
(58) |
|
|
|
|
(1 235) |
|
|
|
(1 493) |
|
Finance costs decreased by 258m US dollar from prior year mainly driven by lower net foreign exchange losses.
Borrowing costs capitalized relate to the capitalization of interest expenses directly attributable to the acquisition and construction of
qualifying assets mainly in Brazil and China. Interests are capitalized at a borrowing rate ranging from 4% to 8%.
Interest expense is
presented net of the effect of interest rate derivative instruments hedging AB InBevs interest rate risk see also Note 27 Risks arising from financial instruments of the 31 December 2014 consolidated financial statements.
FINANCE INCOME
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Interest income |
|
|
175 |
|
|
|
145 |
|
Net foreign exchange gains (net of the effect of foreign exchange derivative instruments) |
|
|
184 |
|
|
|
- |
|
Net gains on hedging instruments that are not part of a hedge accounting relationship |
|
|
407 |
|
|
|
66 |
|
Other financial income |
|
|
6 |
|
|
|
34 |
|
|
|
|
772 |
|
|
|
245 |
|
|
|
|
Non-recurring finance income |
|
|
335 |
|
|
|
238 |
|
|
|
|
1 107 |
|
|
|
483 |
|
Finance income, excluding non-recurring items, increased mainly due to the mark-to-market result on certain
derivatives related to the hedging of share-based payment programs which reached net gains of 618m US dollar during the first six months of 2015 (30 June 2014: 292m US dollar income) and net foreign exchange gains on US dollar cash held in Mexico.
This result was partially offset by costs of currency hedges. See also Note 18 Risks arising from financial instruments.
Non-recurring net finance income for the six-month period ended 30 June 2015 was 335m US dollar resulting from mark-to market adjustments
on derivative instruments entered into to hedge the deferred share instrument issued in a transaction related to the combination with Grupo Modelo (30 June 2014: 238m US dollar income). By 30 June 2015, 100% of the deferred share instrument had
been hedged at an average price of approximately 68 euro per share. See also Note 14 Changes in equity and earnings per share.
No
interest income was recognized on impaired financial assets.
30
Income taxes recognized in the income
statement can be detailed as follows:
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Current tax expense |
|
|
|
|
|
|
|
|
Current year |
|
|
(1 636) |
|
|
|
(1 260) |
|
Deferred tax (expense)/income |
|
|
511 |
|
|
|
194 |
|
Total income tax expense in the income statement |
|
|
(1 125) |
|
|
|
(1 066) |
|
The reconciliation of the effective tax rate
with the aggregated weighted nominal tax rate can be summarized as follows: |
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Profit before tax |
|
|
6 486 |
|
|
|
6 076 |
|
Deduct share of result of associates |
|
|
8 |
|
|
|
11 |
|
Profit before tax and before share of result of associates |
|
|
6 478 |
|
|
|
6 065 |
|
|
|
|
Adjustments on taxable basis |
|
|
|
|
|
|
|
|
Foreign source income |
|
|
(475) |
|
|
|
(360) |
|
Government incentives |
|
|
(386) |
|
|
|
(329) |
|
Taxable intercompany dividends |
|
|
61 |
|
|
|
24 |
|
Expenses not deductible for tax purposes |
|
|
601 |
|
|
|
404 |
|
Other non-taxable income |
|
|
(243) |
|
|
|
(251) |
|
|
|
|
6 036 |
|
|
|
5 553 |
|
|
|
|
Aggregated weighted nominal tax rate |
|
|
30.5% |
|
|
|
32.5% |
|
|
|
|
Tax at aggregated weighted nominal tax rate |
|
|
(1 838) |
|
|
|
(1 806) |
|
|
|
|
Adjustments on tax expense |
|
|
|
|
|
|
|
|
Utilization of tax losses not previously recognized |
|
|
12 |
|
|
|
7 |
|
Recognition of deferred taxes assets on previous years tax losses |
|
|
19 |
|
|
|
2 |
|
Write-down of deferred tax assets on tax losses and current year losses for which no deferred tax asset is recognized |
|
|
(196) |
|
|
|
(103) |
|
(Underprovided)/overprovided in prior years |
|
|
47 |
|
|
|
(7) |
|
Deductions from interest on equity |
|
|
417 |
|
|
|
417 |
|
Deductions from goodwill |
|
|
35 |
|
|
|
61 |
|
Other tax deductions |
|
|
593 |
|
|
|
484 |
|
Change in tax rate |
|
|
18 |
|
|
|
49 |
|
Withholding taxes |
|
|
(189) |
|
|
|
(199) |
|
Other tax adjustments |
|
|
(43) |
|
|
|
29 |
|
|
|
|
(1 125) |
|
|
|
(1 066) |
|
|
|
|
Effective tax rate |
|
|
17.4% |
|
|
|
17.6% |
|
The total income tax expense for the six-month period ended 30 June 2015 amounts to 1 125m US dollar
compared to 1 066m US dollar for the same period 2014. The effective tax rate decreased from 17.6% for the six-month period ended 30 June 2014 to 17.4% for the six-month period ended 30 June 2015, mainly resulting from 2015 gains
from certain derivatives related to the hedging of share-based payment programs and the hedging of the deferred share instrument issued in a transaction related to the combination with Grupo Modelo, as well as changes in country profit mix.
The Company benefits from tax exempted income and tax credits which are expected to continue in the future, except for the tax deductible
goodwill in Brazil which will expire in 2017. The Company does not benefit from significantly low tax rates in any particular jurisdiction.
The normalized effective tax rate for the six-month period ended 30 June 2015 is 17.6% (30 June 2014: 18.4%). Normalized effective tax rate
is not an accounting measure under IFRS accounting and should not be considered as an alternative to the effective tax rate. Normalized effective tax rate method does not have a standard calculation method and AB InBevs definition of
normalized effective tax rate may not be comparable to other companies.
31
10. |
PROPERTY, PLANT AND EQUIPMENT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2015 |
|
|
31 December 2014 |
|
Million US dollar |
|
Land
and buildings |
|
|
Plant and equipment |
|
|
Fixtures and fittings |
|
|
Under construction |
|
|
Total |
|
|
Total |
|
|
|
|
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of previous year |
|
|
9 988 |
|
|
|
22 471 |
|
|
|
3 338 |
|
|
|
1 688 |
|
|
|
37 485 |
|
|
|
38 107 |
|
Effect of movements in foreign exchange |
|
|
(441) |
|
|
|
(1 225) |
|
|
|
(255) |
|
|
|
(103) |
|
|
|
(2 024) |
|
|
|
(3 620) |
|
Acquisitions |
|
|
75 |
|
|
|
520 |
|
|
|
78 |
|
|
|
807 |
|
|
|
1 480 |
|
|
|
3 810 |
|
Acquisitions through business combinations |
|
|
4 |
|
|
|
8 |
|
|
|
3 |
|
|
|
- |
|
|
|
15 |
|
|
|
950 |
|
Disposals |
|
|
(2) |
|
|
|
(249) |
|
|
|
(50) |
|
|
|
- |
|
|
|
(301) |
|
|
|
(1 188) |
|
Disposals through the sale of subsidiaries |
|
|
(4) |
|
|
|
(42) |
|
|
|
(10) |
|
|
|
- |
|
|
|
(56) |
|
|
|
(419) |
|
Transfer (to)/from other asset categories and other movements1 |
|
|
141 |
|
|
|
488 |
|
|
|
188 |
|
|
|
(834) |
|
|
|
(17) |
|
|
|
(156) |
|
Balance at end of the period |
|
|
9 761 |
|
|
|
21 971 |
|
|
|
3 292 |
|
|
|
1 558 |
|
|
|
36 583 |
|
|
|
37 485 |
|
|
|
|
|
|
|
|
Depreciation and impairment losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of previous year |
|
|
(2 826) |
|
|
|
(12 240) |
|
|
|
(2 147) |
|
|
|
(9) |
|
|
|
(17 222) |
|
|
|
(17 218) |
|
Effect of movements in foreign exchange |
|
|
145 |
|
|
|
709 |
|
|
|
171 |
|
|
|
1 |
|
|
|
1 026 |
|
|
|
1 915 |
|
Disposals |
|
|
1 |
|
|
|
207 |
|
|
|
41 |
|
|
|
- |
|
|
|
249 |
|
|
|
918 |
|
Disposals through the sale of subsidiaries |
|
|
1 |
|
|
|
28 |
|
|
|
6 |
|
|
|
- |
|
|
|
35 |
|
|
|
119 |
|
Depreciation |
|
|
(184) |
|
|
|
(960) |
|
|
|
(199) |
|
|
|
- |
|
|
|
(1 343) |
|
|
|
(2 808) |
|
Impairment losses |
|
|
- |
|
|
|
(18) |
|
|
|
- |
|
|
|
- |
|
|
|
(18) |
|
|
|
(163) |
|
Transfer to/(from) other asset categories and other movements1 |
|
|
(2) |
|
|
|
8 |
|
|
|
(21) |
|
|
|
- |
|
|
|
(15) |
|
|
|
16 |
|
Balance at end of the period |
|
|
(2 865) |
|
|
|
(12 265) |
|
|
|
(2 149) |
|
|
|
(8) |
|
|
|
(17 288) |
|
|
|
(17 222) |
|
|
|
|
|
|
|
|
Carrying amount at
31 December 2014 |
|
|
7 162 |
|
|
|
10 231 |
|
|
|
1 191 |
|
|
|
1 679 |
|
|
|
20 263 |
|
|
|
20 263 |
|
at 30 June 2015 |
|
|
6 897 |
|
|
|
9 706 |
|
|
|
1 143 |
|
|
|
1 550 |
|
|
|
19 295 |
|
|
|
- |
|
The carrying amount of property, plant and equipment subject to restrictions on title amounts to 30m US dollar.
Contractual commitments to purchase property, plant and equipment amounted to 795m US dollar as at 30 June 2015 compared to 647m US
dollar as at 31 December 2014. The increase results from projects mainly in North America, Latin America North and Asia Pacific.
LEASED ASSETS
The company leases land and buildings as well as equipment under a number of finance lease agreements. The carrying amount as at 30 June
2015 of leased land and buildings was 141m US dollar (31 December 2014: 151m US dollar).
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
|
|
Balance at end of previous year |
|
|
70 765 |
|
|
|
69 933 |
|
Effect of movements in foreign exchange |
|
|
(2 356) |
|
|
|
(4 403) |
|
Purchases of non-controlling interest |
|
|
- |
|
|
|
(5) |
|
Disposals through the sale of subsidiaries |
|
|
- |
|
|
|
(60) |
|
Acquisitions through business combinations |
|
|
63 |
|
|
|
5 300 |
|
Balance at end of the period |
|
|
68 472 |
|
|
|
70 765 |
|
|
|
|
Impairment losses |
|
|
|
|
|
|
|
|
Balance at end of previous year |
|
|
(7) |
|
|
|
(7) |
|
Impairment losses |
|
|
- |
|
|
|
- |
|
Balance at end of the period |
|
|
(7) |
|
|
|
(7) |
|
|
|
|
Carrying amount at
31 December 2014 |
|
|
70 758 |
|
|
|
70 758 |
|
at 30 June 2015 |
|
|
68 465 |
|
|
|
- |
|
In 2014, disposals through the sale of subsidiaries relate to the sale of the glass production plant in Mexico.
AB InBevs annual goodwill impairment testing is performed during the fourth quarter of the year, or whenever a triggering event has
occurred.
1 The transfer (to)/from other asset categories and other movements mainly relates to
transfers from assets under construction to their respective asset categories, to contributions of assets to pension plans and to the separate presentation in the balance sheet of property, plant and equipment held for sale in accordance with IFRS 5
Non-current assets held for sale and discontinued operations.
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2015 |
|
|
31 December 2014 |
|
Million US dollar |
|
Brands |
|
|
Commercial intangibles |
|
|
Software |
|
|
Other |
|
|
Total |
|
|
Total |
|
|
|
|
|
|
|
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of previous year |
|
|
27 035 |
|
|
|
2 838 |
|
|
|
1 425 |
|
|
|
582 |
|
|
|
31 880 |
|
|
|
31 131 |
|
Effect of movements in foreign exchange |
|
|
(279) |
|
|
|
(104) |
|
|
|
(92) |
|
|
|
(16) |
|
|
|
(491) |
|
|
|
(1 026) |
|
Acquisitions through business combinations |
|
|
- |
|
|
|
15 |
|
|
|
- |
|
|
|
14 |
|
|
|
29 |
|
|
|
1 256 |
|
Acquisitions and expenditures |
|
|
- |
|
|
|
54 |
|
|
|
40 |
|
|
|
104 |
|
|
|
198 |
|
|
|
532 |
|
Disposals through the sales of subsidiaries |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(10) |
|
Disposals |
|
|
(7) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(7) |
|
|
|
(37) |
|
Transfer (to)/from other asset categories and other movements |
|
|
(73) |
|
|
|
(42) |
|
|
|
43 |
|
|
|
(22) |
|
|
|
(94) |
|
|
|
34 |
|
Balance at end of period |
|
|
26 675 |
|
|
|
2 762 |
|
|
|
1 416 |
|
|
|
662 |
|
|
|
31 515 |
|
|
|
31 880 |
|
|
|
|
|
|
|
|
Amortization and impairment losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of previous year |
|
|
- |
|
|
|
(932) |
|
|
|
(955) |
|
|
|
(70) |
|
|
|
(1 957) |
|
|
|
(1 793) |
|
Effect of movements in foreign exchange |
|
|
- |
|
|
|
48 |
|
|
|
64 |
|
|
|
2 |
|
|
|
114 |
|
|
|
194 |
|
Amortization
Impairment losses |
|
|
- |
|
|
|
(89) |
|
|
|
(87) |
|
|
|
(5) |
|
|
|
(181) |
|
|
|
(384) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4) |
|
Disposals through the sales of subsidiaries |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 |
|
Disposals |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
29 |
|
Transfer to/(from) other asset categories and other movements |
|
|
- |
|
|
|
41 |
|
|
|
- |
|
|
|
3 |
|
|
|
44 |
|
|
|
- |
|
Balance at end of period |
|
|
- |
|
|
|
(932) |
|
|
|
(978) |
|
|
|
(70) |
|
|
|
(1 980) |
|
|
|
(1 957) |
|
|
|
|
|
|
|
|
Carrying value at
31 December 2014 |
|
|
27 035 |
|
|
|
1 906 |
|
|
|
470 |
|
|
|
512 |
|
|
|
29 923 |
|
|
|
29 923 |
|
at 30 June 2015 |
|
|
26 675 |
|
|
|
1 830 |
|
|
|
438 |
|
|
|
592 |
|
|
|
29 535 |
|
|
|
- |
|
AB InBev is the owner of some of the worlds most valuable brands in the beer industry. As a result,
brands and certain distribution rights are expected to generate positive cash flows for as long as the company owns the brands and distribution rights. Given AB InBevs more than 600-year history, brands and certain distribution rights have
been assigned indefinite lives.
Acquisitions and expenditures of commercial intangibles mainly represent supply and distribution rights,
exclusive multi-year sponsorship rights and other commercial intangibles.
Intangible assets with indefinite useful lives are comprised
primarily of brands and certain distribution rights that AB InBev purchases for its own products, and are tested for impairment during the fourth quarter of the year or whenever a triggering event has occurred.
13. |
CASH AND CASH EQUIVALENTS AND INVESTMENTS IN SHORT-TERM DEBT SECURITIES |
CASH AND
CASH EQUIVALENTS
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Short-term bank deposits |
|
|
5 501 |
|
|
|
5 804 |
|
US Treasury Bills |
|
|
- |
|
|
|
800 |
|
Cash and bank accounts |
|
|
952 |
|
|
|
1 753 |
|
Cash and cash equivalents |
|
|
6 453 |
|
|
|
8 357 |
|
|
|
|
Bank overdrafts |
|
|
(62) |
|
|
|
(41) |
|
|
|
|
6 391 |
|
|
|
8 316 |
|
INVESTMENTS IN SHORT-TERM DEBT SECURITIES
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Current investments |
|
|
|
|
|
|
|
|
Debt securities held for trading |
|
|
331 |
|
|
|
301 |
|
|
|
|
331 |
|
|
|
301 |
|
The cash outstanding per 30 June 2015 includes restricted cash for an amount of 363m US dollar. This
restricted cash includes 359m US dollar deposited with a Trust established and funded on 4 June 2013, following the closing of the AB InBev and Grupo Modelo combination. The Trust will accept further tender of shares by Grupo Modelo
shareholders at a price of 9.15 US dollar per share over a period of up to 25 months. AB InBev set up a liability for the Grupo Modelo shares it did not acquire by 30 June 2015 see also Note 17 Trade and other payables.
The restricted cash also includes 4m US dollar for the outstanding consideration payable to former Anheuser-Busch shareholders who did not yet
claim the proceeds from the 2008 Anheuser-Busch combination (the related payable is recognized as a deferred consideration on acquisition).
33
14. |
CHANGES IN EQUITY AND EARNINGS PER SHARE |
STATEMENT OF CAPITAL
The tables below summarize the changes in issued capital and treasury shares during the first six months of 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued capital |
|
|
|
|
ISSUED CAPITAL |
|
Million shares |
|
|
Million US dollar |
|
|
|
|
|
|
|
|
At the end of the previous year |
|
|
1 608 |
|
|
|
1 736 |
|
|
|
|
|
Changes during the period |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
1 608 |
|
|
|
1 736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Result on the use of |
|
|
|
Treasury shares |
|
|
treasury shares |
|
TREASURY SHARES |
|
Million shares |
|
|
Million US dollar |
|
|
Million US dollar |
|
|
|
|
|
At the end of the previous year |
|
|
0.9 |
|
|
|
(63) |
|
|
|
(756) |
|
Changes during the period |
|
|
8.1 |
|
|
|
(996) |
|
|
|
9 |
|
|
|
|
9.0 |
|
|
|
(1 059) |
|
|
|
(747) |
|
As at 30 June 2015, the total issued capital of 1 736m US dollar is represented by 1 608 242 156 shares
without face value, of which 473 775 342 registered shares, and 1 134 466 814 dematerialized shares.
The total of authorized, un-issued
capital amounts to 41m US dollar (37m euro).
The holders of ordinary shares are entitled to receive dividends as declared from time to time
and are entitled to one vote per share at meetings of the company. In respect of the companys shares that are held by AB InBev, rights are suspended.
The shareholders structure based on the notifications made to the company pursuant to the Belgian Law of 02 May 2007 on the
disclosure of significant shareholdings in listed companies is included in the Corporate Governance section of AB InBevs annual report.
Using the powers granted at the General Meeting of Shareholders on 30 April 2014, the Board of Directors has approved a share buyback
program for an amount of 1 billion US dollar. Since the start of the share buyback program on 18 March 2015, AB InBev has bought back 8 200 090 shares for a total amount of 1 billion US dollar. This corresponds to 0.51% of the total shares
outstanding. As a result, the share buyback program announced on 26 February 2015 has been completed.
CHANGES IN OWNERSHIP INTERESTS
In compliance with IFRS 10, the acquisition of additional shares in a subsidiary is accounted for as an equity transaction with owners.
During the first six-months of 2015, AB InBev purchased non-controlling interests in subsidiaries for a total consideration of 27m US
dollar. As the related subsidiaries were already fully consolidated, the purchases did not impact AB InBevs profit, but reduced the non-controlling interests and thus impacted the profit attributable to
equity holders of AB InBev.
DIVIDENDS
On
30 October 2014, an interim dividend of 1.00 euro per share or approximately 1 636m euro was approved by the Board of Directors. This interim dividend was paid out 14 November 2014. On 29 April 2015, in addition to the interim
dividend paid on 14 November 2014, a dividend of 2.00 euro per share or approximately 3 276m euro was approved at the shareholders meeting, reflecting a total dividend payment for 2014 fiscal year of 3.00 euro per share or approximately 4 912m
euro. This dividend was paid out on 6 May 2015.
On 30 October 2013, an interim dividend of 0.60 euro per share or approximately
963m euro was approved by the Board of Directors. On 30 April 2014, in addition to the interim dividend paid on 18 November 2013, a dividend of 1.45 euro per share or approximately 2 322m euro was approved at the shareholders meeting,
reflecting a total dividend payment for 2013 fiscal year of 2.05 euro per share or approximately 3 285m euro. This dividend was paid out on 8 May 2014.
TRANSFERS FROM SUBSIDIARIES
The amount of dividends
payable to AB InBev by its operating subsidiaries is subject to, among other restrictions, general limitations imposed by the corporate laws, capital transfer restrictions and exchange control restrictions of the respective jurisdictions where those
subsidiaries are organized and operate. Capital transfer restrictions are also common in certain emerging market countries, and may affect AB InBevs flexibility in implementing a capital structure it believes to be efficient. Dividends paid to
AB InBev by certain of its subsidiaries are also subject to withholding taxes. Withholding tax, if applicable, generally does not exceed 10%.
DEFERRED SHARE
INSTRUMENT
In transaction related to the combination with Grupo Modelo, select Grupo Modelo shareholders committed, upon tender of
their Grupo Modelo shares, to acquire 23 076 923 AB InBev shares to be delivered within 5 years for a consideration of approximately 1.5 billion US dollar. The consideration was paid on 5 June 2013. Pending the delivery of the AB InBev shares,
AB InBev will pay a coupon on each undelivered AB InBev share, so that the Deferred Share Instrument holders are compensated on an after tax basis, for dividends they would have received had the AB InBev shares been delivered to them prior to the
record date for such dividend.
The deferred share instrument is classified as an equity instrument, in line with IAS 32, as the number of
shares and consideration received are fixed. The coupon to compensate for the dividend equivalent is reported through equity. On 6 May 2015, the company paid a coupon of 2.00 euro per share or approximately 62m US dollar. On 14 November
2014, the company paid a coupon of 1.00 euro per share or approximately 31m US dollar.
34
STOCK LENDING
In order to fulfil AB InBevs commitments under various outstanding stock option plans, AB entered into stock lending arrangements for up
to 15 million of its own ordinary shares. AB InBev shall pay any dividend equivalent, after tax in respect of the loaned securities. This payment will be reported through equity as dividend.
As of 30 June 2015, 13.8 million loaned securities were used to fulfil stock option plan commitments.
EARNINGS PER SHARE
The calculation of basic earnings
per share for the six-month period ended 30 June 2015 is based on the profit attributable to equity holders of AB InBev of 4 610m US dollar (30 June 2014: 4 190m US dollar) and a weighted average number of ordinary shares outstanding (including
deferred share instruments and stock lending) per end of the period, calculated as follows:
|
|
|
|
|
|
|
|
|
Million shares |
|
2015 |
|
|
2014 |
|
|
|
|
Issued ordinary shares at 1 January, net of treasury shares |
|
|
1 607 |
|
|
|
1 606 |
|
Effect of shares issued and share buyback programs |
|
|
(2) |
|
|
|
- |
|
Effect of stock lending |
|
|
12 |
|
|
|
3 |
|
Effect of undelivered shares under the deferred share instrument |
|
|
23 |
|
|
|
23 |
|
Weighted average number of ordinary shares at 30 June |
|
|
1 640 |
|
|
|
1 632 |
|
The calculation of diluted earnings per share for the six-month period ended 30 June 2015 is based on the
profit attributable to equity holders of AB InBev of 4 610m US dollar (30 June 2014: 4 190m US dollar) and a weighted average number of ordinary shares (diluted) outstanding (including deferred share instruments and stock lending) per end of the
period, calculated as follows:
|
|
|
|
|
|
|
|
|
Million shares |
|
2015 |
|
|
2014 |
|
|
|
|
Weighted average number of ordinary shares at 30 June |
|
|
1 605 |
|
|
|
1 606 |
|
Effect of stock lending |
|
|
12 |
|
|
|
3 |
|
Effect of undelivered shares under the deferred share instrument |
|
|
23 |
|
|
|
23 |
|
Effect of share options, warrants and restricted stock units |
|
|
31 |
|
|
|
31 |
|
Weighted average number of ordinary shares (diluted) at 30 June |
|
|
1 671 |
|
|
|
1 663 |
|
The calculation of earnings per share before non-recurring items is based on the profit after tax and before
non-recurring items, attributable to equity holders of AB InBev. A reconciliation of profit before non-recurring items, attributable to equity holders of AB InBev to profit attributable to equity holders of AB InBev is calculated as
follows:
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Profit before non-recurring items, attributable to equity holders of AB InBev |
|
|
4 278 |
|
|
|
4 030 |
|
Non-recurring items, after taxes, attributable to equity holders of AB InBev (refer Note 7) |
|
|
(3) |
|
|
|
(78) |
|
Non-recurring finance income/(cost), after taxes, attributable to equity holders of AB InBev (refer Note 7) |
|
|
335 |
|
|
|
238 |
|
Profit attributable to equity holders of AB InBev |
|
|
4 610 |
|
|
|
4 190 |
|
The table below sets out the EPS calculation:
|
|
|
|
|
|
|
|
|
For the six-month period ended 30 June
Million US dollar |
|
2015 |
|
|
2014 |
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
4 610 |
|
|
|
4 190 |
|
Weighted average number of ordinary shares |
|
|
1 640 |
|
|
|
1 632 |
|
Basic EPS |
|
|
2.81 |
|
|
|
2.57 |
|
|
|
|
Profit before non-recurring items, attributable to equity holders of AB InBev |
|
|
4 278 |
|
|
|
4 030 |
|
Weighted average number of ordinary shares |
|
|
1 640 |
|
|
|
1 632 |
|
EPS before non-recurring items |
|
|
2.61 |
|
|
|
2.47 |
|
|
|
|
Profit attributable to equity holders of AB InBev |
|
|
4 610 |
|
|
|
4 190 |
|
Weighted average number of ordinary shares (diluted) |
|
|
1 671 |
|
|
|
1 663 |
|
Diluted EPS |
|
|
2.76 |
|
|
|
2.52 |
|
|
|
|
Profit before non-recurring items, attributable to equity holders of AB InBev |
|
|
4 278 |
|
|
|
4 030 |
|
Weighted average number of ordinary shares (diluted) |
|
|
1 671 |
|
|
|
1 663 |
|
Diluted EPS before non-recurring items |
|
|
2.56 |
|
|
|
2.42 |
|
The average market value of the companys shares for purposes of calculating the dilutive effect of share
options and restricted stock units was based on quoted market prices for the period that the options and restricted stock units were outstanding. 3.7m share options were anti-dilutive and not included in the calculation of the dilutive effect as at
30 June 2015.
35
15. |
INTEREST-BEARING LOANS AND BORROWINGS |
This note provides
information about the companys interest-bearing loans and borrowings. For more information about the companys exposure to interest rate and foreign exposure currency risk - refer to Note 18 Risks arising from financial
instruments.
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Secured bank loans |
|
|
191 |
|
|
|
169 |
|
Unsecured bank loans |
|
|
162 |
|
|
|
260 |
|
Unsecured bond issues |
|
|
43 528 |
|
|
|
43 014 |
|
Unsecured other loans |
|
|
57 |
|
|
|
57 |
|
Finance lease liabilities |
|
|
129 |
|
|
|
130 |
|
|
|
|
44 067 |
|
|
|
43 630 |
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Secured bank loans |
|
|
138 |
|
|
|
117 |
|
Commercial papers |
|
|
2 117 |
|
|
|
2 211 |
|
Unsecured bank loans |
|
|
1 364 |
|
|
|
560 |
|
Unsecured bond issues |
|
|
3 736 |
|
|
|
4 535 |
|
Unsecured other loans |
|
|
15 |
|
|
|
25 |
|
Finance lease liabilities |
|
|
5 |
|
|
|
3 |
|
|
|
|
7 375 |
|
|
|
7 451 |
|
The current and non-current interest-bearing loans and borrowings amount to 51.4 billion US dollar as of
30 June 2015, compared to 51.1 billion US dollar as of 31 December 2014.
On 20 April 2015, AB InBev issued 3.0 billion euro
aggregate principal amount of notes, consisting of 0.75 billion euro aggregate principal amount of floating rate notes due 2018 bearing interest at an annual rate of 25 basis points above three-month EURIBOR; 1.0 billion euro aggregate principal
amount of fixed rate notes due 2023 bearing interest at an annual rate of 0.80% and 1.25 billion euro aggregate principal amount of fixed rate notes due 2030 bearing interest at an annual rate of 1.50%. The use of the proceeds of such issuance was
for general corporate purposes. Commercial papers amount to 2.1 billion US dollar as of 30 June 2015 and include programs in US dollar and euro with a total authorized issuance up to 3.0 billion US dollar and 1.0 billion euro, respectively.
As of 30 June 2015, there are no amounts drawn under the 8.0 billion US dollar 2010 Senior Facilities.
AB InBev is in compliance with all its debt covenants as of 30 June 2015. The 2010 Senior Facilities do not include restrictive financial
covenants.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TERMS AND DEBT REPAYMENT
SCHEDULE AT 30 JUNE 2015 Million US
dollar |
|
Total |
|
|
1 year or less |
|
|
1-2 years |
|
|
2-3 years |
|
|
3-5 years |
|
|
More than 5 years |
|
|
|
|
|
|
|
|
Secured bank loans |
|
|
329 |
|
|
|
138 |
|
|
|
60 |
|
|
|
25 |
|
|
|
36 |
|
|
|
70 |
|
Commercial papers |
|
|
2 117 |
|
|
|
2 117 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Unsecured bank loans |
|
|
1 526 |
|
|
|
1 364 |
|
|
|
78 |
|
|
|
44 |
|
|
|
40 |
|
|
|
- |
|
Unsecured bond issues |
|
|
47 264 |
|
|
|
3 736 |
|
|
|
4 824 |
|
|
|
5 992 |
|
|
|
10 192 |
|
|
|
22 520 |
|
Unsecured other loans |
|
|
72 |
|
|
|
15 |
|
|
|
14 |
|
|
|
9 |
|
|
|
11 |
|
|
|
23 |
|
Finance lease liabilities |
|
|
134 |
|
|
|
5 |
|
|
|
5 |
|
|
|
4 |
|
|
|
15 |
|
|
|
105 |
|
|
|
|
51 442 |
|
|
|
7 375 |
|
|
|
4 981 |
|
|
|
6 074 |
|
|
|
10 294 |
|
|
|
22 718 |
|
TERMS AND DEBT REPAYMENT
SCHEDULE AT 31 DECEMBER 2014 Million US
dollar |
|
Total |
|
|
1 year or less |
|
|
1-2 years |
|
|
2-3 years |
|
|
3-5 years |
|
|
More than 5 years |
|
|
|
|
|
|
|
|
Secured bank loans |
|
|
286 |
|
|
|
117 |
|
|
|
72 |
|
|
|
28 |
|
|
|
41 |
|
|
|
28 |
|
Commercial papers |
|
|
2 211 |
|
|
|
2 211 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Unsecured bank loans |
|
|
820 |
|
|
|
560 |
|
|
|
138 |
|
|
|
63 |
|
|
|
59 |
|
|
|
- |
|
Unsecured bond issues |
|
|
47 549 |
|
|
|
4 535 |
|
|
|
2 383 |
|
|
|
6 682 |
|
|
|
10 240 |
|
|
|
23 709 |
|
Unsecured other loans |
|
|
82 |
|
|
|
25 |
|
|
|
14 |
|
|
|
10 |
|
|
|
13 |
|
|
|
20 |
|
Finance lease liabilities |
|
|
133 |
|
|
|
3 |
|
|
|
4 |
|
|
|
4 |
|
|
|
14 |
|
|
|
108 |
|
|
|
|
51 081 |
|
|
|
7 451 |
|
|
|
2 611 |
|
|
|
6 787 |
|
|
|
10 367 |
|
|
|
23 865 |
|
Net debt is defined as non-current and current interest-bearing loans and borrowings and bank overdrafts minus
debt securities and cash. Net debt is a financial performance indicator that is used by AB InBevs management to highlight changes in the companys overall liquidity position. The company believes that net debt is meaningful for investors
as it is one of the primary measures AB InBevs management uses when evaluating its progress towards deleveraging.
AB InBevs net
debt increased to 44.4 billion US dollar as of 30 June 2015, from 42.1 billion US dollar as of 31 December 2014. Apart from operating results net of capital expenditures, the net debt is mainly impacted by share buyback (1.0 billion US
dollar), dividend payments to shareholders of AB InBev and Ambev (4.6 billion US dollar), the payment of interests and taxes (2.3 billion US dollar) and the impact of changes in foreign exchange rates (680m US dollar decrease of net debt).
36
The following table provides a reconciliation of AB InBevs net debt as of the dates
indicated:
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Non-current interest-bearing loans and borrowings |
|
|
44 067 |
|
|
|
43 630 |
|
Current interest-bearing loans and borrowings |
|
|
7 375 |
|
|
|
7 451 |
|
|
|
|
51 442 |
|
|
|
51 081 |
|
|
|
|
Bank overdrafts |
|
|
62 |
|
|
|
41 |
|
Cash and cash equivalents |
|
|
(6 453) |
|
|
|
(8 357) |
|
Interest bearing loans granted (included within Trade and other receivables) |
|
|
(290) |
|
|
|
(308) |
|
Debt securities (included within Investment securities) |
|
|
(351) |
|
|
|
(322) |
|
Net debt |
|
|
44 410 |
|
|
|
42 135 |
|
16. |
SHARE-BASED PAYMENTS1 |
Different share and share option programs allow company senior management and members of the board of directors to receive or acquire shares of
AB InBev or Ambev. For all option plans, the fair value of share-based payment compensation is estimated at grant date, using a binomial Hull model, modified to reflect the IFRS 2 Share-based Payment requirement that assumptions about
forfeiture before the end of the vesting period cannot impact the fair value of the option.
Share-based payment transactions resulted in a
total expense of 108m US dollar for the six-month period ended 30 June 2015, as compared to 123m US dollar for the six-month period ended 30 June 2014.
AB INBEV SHARE-BASED COMPENSATION PROGRAMS
Share-Based Compensation Plan
During 2015, AB InBev issued 0.3m of matching restricted stock units in relation to the 2014 bonus granted to company employees and management.
These matching restricted stock units are valued at the share price at the day of grant representing a fair value of approximately 44m US dollar and cliff vest after five years.
LTI Stock Option Plan for Directors
AB InBev granted 0.2m stock options to members of the board of directors during 2015 representing a fair value of approximately 5m US dollar.
Other Grants
As from
2010 AB InBev has in place three specific long-term restricted stock unit programs.
One program allows for the offer of restricted stock
units to certain employees in certain specific circumstances, whereby grants are made at the discretion of the CEO, e.g. to compensate for assignments of expatriates in countries with difficult living conditions. The restricted stock units vest
after five years and in case of termination of service before the vesting date, special forfeiture rules apply. In 2015, 0.1m restricted stock units with an estimated fair value of 10m US dollar were granted under this program to a selected number
of employees.
A second program allows for the exceptional offer of restricted stock units to certain employees at the discretion of the
Remuneration Committee of AB InBev as a long-term retention incentive for key employees of the company. Employees eligible to receive a grant under this program receive two series of restricted stock units, the first half of the restricted stock
units vesting after five years, the second half after ten years. In case of termination of service before the vesting date, special forfeiture rules apply. In 2015 0.1m restricted stock units with an estimated fair value of 12m US dollar were
granted under this program to a selected number of employees.
A third program allows certain employees to purchase company shares at a
discount aimed as a long-term retention incentive for (i) high-potential employees of the company, who are at a mid-manager level (People bet share purchase program) or (ii) for newly hired employees. The voluntary investment
in company shares leads to the grant of 3 matching shares for each share invested. The discount and matching shares are granted in the form of restricted stock units which vest after 5 years. In case of termination before the vesting date, special
forfeiture rules apply. In 2015, employees purchased shares under this program for the equivalent of 0.8m US dollar.
In order to maintain
consistency of benefits granted to executives and to encourage international mobility of executives, the Remuneration Committee approved in 2015 the early release of the vesting conditions of 0.3m unvested options. The shares that result from the
exercise of the options must remain locked-up until 31 December 2023. As the vesting period for these stock options was changed, an accelerated expense was recorded as a result of the modification.
AMBEV SHARE-BASED COMPENSATION PROGRAMS
Since 2005, Ambev has had a plan which is substantially similar to the Share-based compensation plan under which bonuses granted to company
employees and management are partially settled in shares. Under the Share-based compensation plan, Ambev issued in 2015, 2m restricted stock units with an estimated fair value of 13m US dollar.
In order to encourage the mobility of managers, the features of certain Ambev options granted in previous years have been modified whereby the
dividend protection of these options was cancelled and replaced by the issuance of 0.1m options in 2015 representing the economic value of the dividend protection feature. Since there was no change between the fair value of the original award
before the modification and the fair value of the modified award after the modification, no additional expense was recorded as a result of this modification.
1
Amounts have been converted to US dollar at the average rate of the period.
37
17. |
TRADE AND OTHER PAYABLES |
NON-CURRENT TRADE AND OTHER PAYABLES
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 20141 |
|
|
|
|
Indirect taxes payable |
|
|
181 |
|
|
|
230 |
|
Trade payables |
|
|
268 |
|
|
|
305 |
|
Deferred consideration on acquisitions |
|
|
217 |
|
|
|
138 |
|
Derivatives |
|
|
123 |
|
|
|
64 |
|
Other payables |
|
|
237 |
|
|
|
333 |
|
|
|
|
1 026 |
|
|
|
1 070 |
|
CURRENT TRADE AND OTHER PAYABLES
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 20141 |
|
|
|
|
Trade payables and accrued expenses |
|
|
10 272 |
|
|
|
10 913 |
|
Payroll and social security payables |
|
|
945 |
|
|
|
1 030 |
|
Indirect taxes payable |
|
|
1 570 |
|
|
|
1 849 |
|
Interest payable |
|
|
752 |
|
|
|
850 |
|
Consigned packaging |
|
|
755 |
|
|
|
715 |
|
Derivatives |
|
|
1 199 |
|
|
|
1 013 |
|
Dividends payable |
|
|
218 |
|
|
|
518 |
|
Deferred income |
|
|
51 |
|
|
|
53 |
|
Deferred consideration on acquisitions |
|
|
1 523 |
|
|
|
1 640 |
|
Other payables |
|
|
237 |
|
|
|
341 |
|
|
|
|
17 522 |
|
|
|
18 922 |
|
Deferred consideration on acquisitions is mainly comprised of 1.3 billion US dollar for the put option included
in the shareholders agreement between Ambev and E. León Jimenes S.A. (ELJ), which may result in Ambev acquiring additional Class B shares of Cervecería Nacional Dominicana S.A. (CND). The put option
granted to ELJ is exercisable as of the first year following the transaction. The valuation of this option is based on the EBITDA of the consolidated operations in Dominican Republic. The deferred consideration on acquisitions is also comprised of
0.4 billion US dollar liability for the Grupo Modelo shares the company did not acquire by 30 June 2015. On 3 June 2013, AB InBev established and funded a Trust to accept further tender of shares by Grupo Modelo shareholders at a price of
9.15 US dollar per share over a period of up to 25 months.
Derivatives mainly reflect the mark-to-market of interest rate swaps, of
forward exchange contracts and of commodity forward contracts entered into to hedge the companys operational exposure (See also Note 27 Risks arising from financial instruments of the 31 December 2014 consolidated financial
statements).
18. |
RISKS ARISING FROM FINANCIAL INSTRUMENTS |
AB InBevs
activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest risk, commodity risk and equity risk), credit risk and liquidity risk. The company analyses each of these
risks individually as well as on an interconnected basis, and defines strategies to manage the economic impact on the companys performance in line with its financial risk management policy.
Some of the companys risk management strategies include the usage of derivatives. The main derivative instruments used are foreign
currency rate agreements, exchange traded foreign currency futures and options, interest rate swaps and forwards, cross currency interest rate swaps (CCIRS), exchange traded interest rate futures, commodity swaps, exchange traded
commodity futures and equity swaps. AB InBevs policy prohibits the use of derivatives in the context of speculative trading. Other than the disclosures below, there were no other material changes to Note 27 Risks arising from financial
instruments of the 31 December 2014 consolidated financial statements.
1
Reclassified to conform to the 2015 presentation
38
The following table provides an overview of the derivative financial instruments outstanding at
30 June 2015 by maturity bucket. The amounts included in this table are the notional amounts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2015 |
|
|
31 December 2014 |
|
Million US dollar |
|
< 1 year |
|
|
1-2 years |
|
|
2-3 years |
|
|
3-5 years |
|
|
> 5 years |
|
|
< 1 year |
|
|
1-2 years |
|
|
2-3 years |
|
|
3-5 years |
|
|
> 5 years |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
|
14 629 |
|
|
|
81 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7 554 |
|
|
|
47 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Foreign currency futures |
|
|
1 450 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 822 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
- |
|
|
|
- |
|
|
|
97 |
|
|
|
3 000 |
|
|
|
93 |
|
|
|
350 |
|
|
|
- |
|
|
|
113 |
|
|
|
2 250 |
|
|
|
787 |
|
Cross currency interest rate swaps |
|
|
81 |
|
|
|
1 648 |
|
|
|
781 |
|
|
|
1 455 |
|
|
|
1 524 |
|
|
|
1 023 |
|
|
|
- |
|
|
|
1 789 |
|
|
|
2 373 |
|
|
|
1 197 |
|
Interest rate futures |
|
|
119 |
|
|
|
- |
|
|
|
32 |
|
|
|
266 |
|
|
|
- |
|
|
|
- |
|
|
|
139 |
|
|
|
113 |
|
|
|
151 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Commodities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminum swaps |
|
|
1 404 |
|
|
|
325 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 422 |
|
|
|
48 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other commodity derivatives |
|
|
1 334 |
|
|
|
38 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1 374 |
|
|
|
194 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity derivatives |
|
|
5 375 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4 854 |
|
|
|
838 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
EQUITY PRICE RISK
AB InBev entered into a series of derivative contracts to hedge the risk arising from the different share-based payment programs. The purpose
of these derivatives is mainly to effectively hedge the risk that a price increase in the AB InBev shares will negatively impact future cash flows related to the share-based payments. Furthermore, AB InBev entered into a series of derivative
contracts to hedge the deferred share instrument related to the Modelo combination (see also Note 8 Finance cost and income and Note 14 Changes in equity and earnings per share). Most of these derivative instruments could not qualify
for hedge accounting therefore they have not been designated in any hedging relationships.
As of 30 June 2015, an exposure for an
equivalent of 58.6m of AB InBev shares was hedged, resulting in a total gain of 953m US dollar recognized in the profit or loss account for the period, of which 618m US dollar related to the companys share-based payment programs and 335m US
dollar related to the Modelo transaction (see also Note 8 Finance cost and income).
Between 2012 and 2015, AB InBev reset with
counterparties certain derivative contracts to market price. This resulted in a cash inflow of 1.3 billion US dollar between 2012 and 2014 and 21m US dollar in 2015 and, accordingly, a decrease of counterparty risk.
LIQUIDITY RISK
The following are the contractual
maturities of non-derivative financial liabilities including interest payments and derivative financial assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2015 |
|
Million US dollar |
|
Carrying amount1 |
|
|
Contractual cash flows |
|
|
Less than
1 year |
|
|
1-2 years |
|
|
2-3 years |
|
|
3-5 years |
|
|
More than
5 years |
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans |
|
|
(329) |
|
|
|
(346) |
|
|
|
(147) |
|
|
|
(65) |
|
|
|
(27) |
|
|
|
(37) |
|
|
|
(70) |
|
Commercial papers |
|
|
(2 117) |
|
|
|
(2 119) |
|
|
|
(2 119) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Unsecured bank loans |
|
|
(1 526) |
|
|
|
(1 572) |
|
|
|
(1 385) |
|
|
|
(98) |
|
|
|
(48) |
|
|
|
(41) |
|
|
|
- |
|
Unsecured bond issues |
|
|
(47 264) |
|
|
|
(65 810) |
|
|
|
(4 985) |
|
|
|
(6 447) |
|
|
|
(7 627) |
|
|
|
(12 819) |
|
|
|
(33 932) |
|
Unsecured other loans |
|
|
(72) |
|
|
|
(172) |
|
|
|
(25) |
|
|
|
(20) |
|
|
|
(17) |
|
|
|
(21) |
|
|
|
(89) |
|
Finance lease liabilities |
|
|
(134) |
|
|
|
(239) |
|
|
|
(15) |
|
|
|
(15) |
|
|
|
(14) |
|
|
|
(33) |
|
|
|
(162) |
|
Bank overdraft |
|
|
(62) |
|
|
|
(62) |
|
|
|
(62) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Trade and other payables |
|
|
(17 223) |
|
|
|
(17 500) |
|
|
|
(16 323) |
|
|
|
(415) |
|
|
|
(112) |
|
|
|
(216) |
|
|
|
(434) |
|
|
|
|
(68 727) |
|
|
|
(87 820) |
|
|
|
(25 061) |
|
|
|
(7 060) |
|
|
|
(7 845) |
|
|
|
(13 167) |
|
|
|
(34 687) |
|
|
|
|
|
|
|
|
|
Derivative financial assets/(liabilities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives |
|
|
43 |
|
|
|
49 |
|
|
|
50 |
|
|
|
22 |
|
|
|
(6) |
|
|
|
(17) |
|
|
|
- |
|
Foreign exchange derivatives |
|
|
(447) |
|
|
|
(447) |
|
|
|
(447) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Cross currency interest rate swaps |
|
|
537 |
|
|
|
539 |
|
|
|
47 |
|
|
|
180 |
|
|
|
(45) |
|
|
|
286 |
|
|
|
71 |
|
Commodity derivatives |
|
|
(311) |
|
|
|
(305) |
|
|
|
(290) |
|
|
|
(15) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Equity derivatives |
|
|
2 053 |
|
|
|
2 078 |
|
|
|
2 078 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
1 875 |
|
|
|
1 914 |
|
|
|
1 438 |
|
|
|
187 |
|
|
|
(51) |
|
|
|
269 |
|
|
|
71 |
|
|
|
|
|
|
|
|
|
Of which: directly related to cash flow hedges |
|
|
(190) |
|
|
|
(193) |
|
|
|
(204) |
|
|
|
3 |
|
|
|
(68) |
|
|
|
15 |
|
|
|
61 |
|
1 Carrying amount refers to net book value as recognized in the balance sheet at each reporting date.
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2014 |
|
Million US dollar |
|
Carrying amount1 |
|
|
Contractual cash flows |
|
|
Less than 1 year |
|
|
1-2 years |
|
|
2-3 years |
|
|
3-5 years |
|
|
More than 5 years |
|
|
|
|
|
|
|
|
|
Non-derivative financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Secured bank loans |
|
|
(286) |
|
|
|
(313) |
|
|
|
(124) |
|
|
|
(82) |
|
|
|
(32) |
|
|
|
(46) |
|
|
|
(29) |
|
Commercial papers |
|
|
(2 211) |
|
|
|
(2 214) |
|
|
|
(2 214) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Unsecured bank loans |
|
|
(820) |
|
|
|
(889) |
|
|
|
(590) |
|
|
|
(168) |
|
|
|
(69) |
|
|
|
(62) |
|
|
|
- |
|
Unsecured bond issues |
|
|
(47 549) |
|
|
|
(66 851) |
|
|
|
(5 715) |
|
|
|
(4 212) |
|
|
|
(8 339) |
|
|
|
(13 154) |
|
|
|
(35 431) |
|
Unsecured other loans |
|
|
(82) |
|
|
|
(175) |
|
|
|
(35) |
|
|
|
(21) |
|
|
|
(18) |
|
|
|
(22) |
|
|
|
(79) |
|
Finance lease liabilities |
|
|
(133) |
|
|
|
(244) |
|
|
|
(14) |
|
|
|
(14) |
|
|
|
(14) |
|
|
|
(34) |
|
|
|
(168) |
|
Bank overdraft |
|
|
(41) |
|
|
|
(41) |
|
|
|
(41) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Trade and other payables |
|
|
(18 909) |
|
|
|
(19 151) |
|
|
|
(17 908) |
|
|
|
(356) |
|
|
|
(215) |
|
|
|
(163) |
|
|
|
(509) |
|
|
|
|
(70 031) |
|
|
|
(89 878) |
|
|
|
(26 641) |
|
|
|
(4 853) |
|
|
|
(8 687) |
|
|
|
(13 481) |
|
|
|
(36 216) |
|
Derivative financial assets/(liabilities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate derivatives |
|
|
33 |
|
|
|
33 |
|
|
|
47 |
|
|
|
21 |
|
|
|
(11) |
|
|
|
(24) |
|
|
|
- |
|
Foreign exchange derivatives |
|
|
(277) |
|
|
|
(281) |
|
|
|
(281) |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Cross currency interest rate swaps |
|
|
319 |
|
|
|
384 |
|
|
|
83 |
|
|
|
41 |
|
|
|
103 |
|
|
|
116 |
|
|
|
41 |
|
Commodity derivatives |
|
|
(166) |
|
|
|
(169) |
|
|
|
(171) |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Equity derivatives |
|
|
1 258 |
|
|
|
1 246 |
|
|
|
1 028 |
|
|
|
218 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
1 167 |
|
|
|
1 213 |
|
|
|
706 |
|
|
|
282 |
|
|
|
92 |
|
|
|
92 |
|
|
|
41 |
|
|
|
|
|
|
|
|
|
Of which: directly related to cash flow hedges |
|
|
(45) |
|
|
|
(47) |
|
|
|
(46) |
|
|
|
2 |
|
|
|
41 |
|
|
|
(43) |
|
|
|
(1) |
|
FAIR VALUE
The
following table summarizes for each type of derivative the fair values recognized as assets or liabilities in the balance sheet:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
Liabilities |
|
|
Net |
|
Million US dollar |
|
30 June
2015 |
|
|
31 December 2014 |
|
|
30 June
2015 |
|
|
31 December 2014 |
|
|
30 June
2015 |
|
|
31 December 2014 |
|
|
|
|
|
|
|
|
Foreign currency |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts |
|
|
354 |
|
|
|
420 |
|
|
|
(792) |
|
|
|
(652) |
|
|
|
(438) |
|
|
|
(232) |
|
Foreign currency futures |
|
|
18 |
|
|
|
72 |
|
|
|
(27) |
|
|
|
(117) |
|
|
|
(9) |
|
|
|
(45) |
|
|
|
|
|
|
|
|
Interest rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
|
50 |
|
|
|
41 |
|
|
|
(7) |
|
|
|
(8) |
|
|
|
43 |
|
|
|
33 |
|
Cross currency interest rate swaps . |
|
|
647 |
|
|
|
379 |
|
|
|
(110) |
|
|
|
(60) |
|
|
|
537 |
|
|
|
319 |
|
|
|
|
|
|
|
|
Commodities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminum swaps |
|
|
11 |
|
|
|
17 |
|
|
|
(238) |
|
|
|
(53) |
|
|
|
(227) |
|
|
|
(36) |
|
Sugar futures |
|
|
2 |
|
|
|
2 |
|
|
|
(35) |
|
|
|
(27) |
|
|
|
(33) |
|
|
|
(25) |
|
Wheat futures |
|
|
39 |
|
|
|
47 |
|
|
|
(19) |
|
|
|
(16) |
|
|
|
20 |
|
|
|
31 |
|
Other commodity derivatives |
|
|
23 |
|
|
|
8 |
|
|
|
(94) |
|
|
|
(144) |
|
|
|
(71) |
|
|
|
(136) |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity derivatives |
|
|
2 053 |
|
|
|
1 258 |
|
|
|
- |
|
|
|
- |
|
|
|
2 053 |
|
|
|
1 258 |
|
|
|
|
3 197 |
|
|
|
2 244 |
|
|
|
(1 322) |
|
|
|
(1 077) |
|
|
|
1 875 |
|
|
|
1 167 |
|
As required by IFRS 13 Fair value measurement, the following table provides an analysis of
financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
|
|
|
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
|
|
|
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). |
|
|
|
Level 3 fair value measurements are those derived from valuation techniques for which the lowest level of input that is significant to the fair
value measurement is unobservable. |
1
Carrying amount refers to net book value as recognized in the balance sheet at each reporting date.
40
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hierarchy 30 June 2015
Million US dollar |
|
Quoted (unadjusted)
prices - level 1 |
|
|
Observable market
inputs - level 2 |
|
|
Unobservable market
inputs - level 3 |
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading (non-derivatives) |
|
|
331 |
|
|
|
- |
|
|
|
- |
|
Derivatives at fair value through profit and loss |
|
|
10 |
|
|
|
2 160 |
|
|
|
- |
|
Derivatives in a cash flow hedge relationship |
|
|
24 |
|
|
|
360 |
|
|
|
- |
|
Derivatives in a fair value hedge relationship |
|
|
- |
|
|
|
227 |
|
|
|
- |
|
Derivatives in a net investment hedge relationship |
|
|
7 |
|
|
|
409 |
|
|
|
- |
|
|
|
|
372 |
|
|
|
3 156 |
|
|
|
- |
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred consideration on acquisitions at fair value |
|
|
- |
|
|
|
- |
|
|
|
1 327 |
|
Derivatives at fair value through profit and loss |
|
|
17 |
|
|
|
628 |
|
|
|
- |
|
Derivatives in a cash flow hedge relationship |
|
|
67 |
|
|
|
507 |
|
|
|
- |
|
Derivatives in a fair value hedge relationship |
|
|
- |
|
|
|
13 |
|
|
|
- |
|
Derivatives in a net investment hedge relationship |
|
|
1 |
|
|
|
89 |
|
|
|
- |
|
|
|
|
85 |
|
|
|
1 237 |
|
|
|
1 327 |
|
|
|
|
|
Fair value hierarchy 31 December 2014
Million US dollar |
|
Quoted (unadjusted)
prices - level 1 |
|
|
Observable market
inputs - level 2 |
|
|
Unobservable market
inputs - level 3 |
|
|
|
|
|
Financial Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Held for trading (non-derivatives) |
|
|
301 |
|
|
|
- |
|
|
|
- |
|
Derivatives at fair value through profit and loss |
|
|
37 |
|
|
|
1 352 |
|
|
|
- |
|
Derivatives in a cash flow hedge relationship |
|
|
11 |
|
|
|
369 |
|
|
|
- |
|
Derivatives in a fair value hedge relationship |
|
|
- |
|
|
|
140 |
|
|
|
- |
|
Derivatives in a net investment hedge relationship |
|
|
34 |
|
|
|
301 |
|
|
|
- |
|
|
|
|
383 |
|
|
|
2 162 |
|
|
|
- |
|
|
|
|
|
Financial Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred consideration on acquisitions at fair value |
|
|
- |
|
|
|
- |
|
|
|
1 268 |
|
Derivatives at fair value through profit and loss |
|
|
65 |
|
|
|
459 |
|
|
|
- |
|
Derivatives in a cash flow hedge relationship |
|
|
89 |
|
|
|
336 |
|
|
|
- |
|
Derivatives in a fair value hedge relationship |
|
|
- |
|
|
|
18 |
|
|
|
- |
|
Derivatives in a net investment hedge relationship |
|
|
19 |
|
|
|
91 |
|
|
|
- |
|
|
|
|
173 |
|
|
|
904 |
|
|
|
1 268 |
|
DERIVATIVE INSTRUMENTS
The fair value of exchange traded derivatives (e.g. exchange traded foreign currency futures) is determined by reference to the official prices
published by the respective exchanges (e.g. the New York Board of Trade). The fair value of over-the-counter derivatives is determined by commonly used valuation techniques. These are based on market inputs from reliable financial information
providers.
NON-DERIVATIVE FINANCIAL LIABILITIES
As part of the shareholders agreement between Ambev and E. León Jimenes S.A., following the acquisition of Cervecería Nacional
Dominicana S.A. (CND), a put and call option is in place which may result in Ambev acquiring additional shares in CND. As of 30 June 2015, the put option was valued 1 299m US dollar (31 December 2014: 1 239m US dollar) and
recognized as a deferred consideration on acquisitions at fair value in level 3 category above. No value was allocated to the call option. The fair value of such deferred consideration is calculated based on commonly-used valuation
techniques (i.e. net present value of future principal and interest cash flows discounted at market rate). These are based on market inputs from reliable financial information providers. As the put option may be exercised in the short-term, the
portion of the liability that would relate to such exercise is presented as a current liability.
Fair values determined by reference to
prices provided by reliable financial information providers are periodically checked for consistency against other pricing sources.
41
OFFSETTING FINANCIAL ASSETS & FINANCIAL LIABILITIES
The following financial assets and liabilities are subject to offsetting, enforceable master netting agreements and similar agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2015 |
|
|
|
Amounts offset |
|
|
Amounts not offset |
|
|
Net |
|
Million US dollar |
|
Gross
amounts |
|
|
Gross
amounts offset |
|
|
Net
amounts presented |
|
|
Financial
instruments |
|
|
Cash collateral pledged/
(received) |
|
|
|
|
|
|
|
|
|
|
|
Derivative assets |
|
|
3 197 |
|
|
|
- |
|
|
|
3 197 |
|
|
|
(1 245) |
|
|
|
(1 179) |
|
|
|
773 |
|
Derivative liabilities |
|
|
(1 322) |
|
|
|
- |
|
|
|
(1 322) |
|
|
|
1 245 |
|
|
|
11 |
|
|
|
(66) |
|
|
|
|
|
31 December 2014 |
|
|
|
Amounts offset |
|
|
Amounts not offset |
|
|
Net |
|
Million US dollar |
|
Gross
amounts |
|
|
Gross amounts offset |
|
|
Net
amounts presented |
|
|
Financial instruments |
|
|
Cash collateral pledged/ (received) |
|
|
|
|
|
|
|
|
|
|
|
Derivative assets |
|
|
2 244 |
|
|
|
- |
|
|
|
2 244 |
|
|
|
(922) |
|
|
|
(293) |
|
|
|
1 029 |
|
Derivative liabilities |
|
|
(1 077) |
|
|
|
- |
|
|
|
(1 077) |
|
|
|
922 |
|
|
|
19 |
|
|
|
(136) |
|
For the financial assets and liabilities subject to enforceable master netting agreements or similar agreements
above, each agreement between the company and the counterparty allows for net settlement of the relevant financial assets and liabilities when both elect to settle on a net basis. In the absence of such election, financial assets and liabilities
will be settled on a gross basis, however, each party to the master net agreement will have the option to settle all such amounts on a net basis in the event of default of the other part.
19. |
COLLATERAL AND CONTRACTUAL COMMITMENTS FOR THE ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT, LOANS TO CUSTOMERS AND OTHER |
In the first six months of 2015, there were no significant changes in collateral and contractual commitments to purchase property, plant and
equipment, loans to customers and other as compared to 31 December 2014.
The company has contingencies for which, in the opinion of management and its legal counsel, the risk of loss is possible but not probable and
therefore no provisions have been recorded. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions, and
as a consequence AB InBev management cannot at this stage estimate the likely timing of resolution of these matters. The most significant contingencies are discussed below.
AMBEV TAX MATTERS
As of 30 June 2015, AB
InBevs material tax proceedings related to Ambev and its subsidiaries. Estimates of amounts of possible loss are as follows:
|
|
|
|
|
|
|
|
|
Million US dollar |
|
30 June 2015 |
|
|
31 December 2014 |
|
|
|
|
Income tax and social contribution |
|
|
4 341 |
|
|
|
4 874 |
|
Value-added and excise taxes |
|
|
2 454 |
|
|
|
2 127 |
|
Other taxes |
|
|
124 |
|
|
|
115 |
|
|
|
|
6 919 |
|
|
|
7 116 |
|
The most significant tax proceedings of Ambev are discussed below.
INCOME TAX AND SOCIAL CONTRIBUTION
During the first
quarter 2005, certain subsidiaries of Ambev received a number of assessments from Brazilian federal tax authorities relating to profits of its foreign subsidiaries. In December 2008, the Administrative Court decided on one of the tax assessments
relating to earnings of Ambevs foreign subsidiaries. This decision was partially favorable to Ambev, and in connection with the remaining part, Ambev filed an appeal to the Upper House of the Administrative Court and is awaiting its decision.
With respect to another tax assessment relating to foreign profits, the Administrative Court rendered a decision favorable to Ambev in September 2011. In December 2013, Ambev received another tax assessment related to profits of its foreign
subsidiaries. As of 30 June 2015, Ambev management estimates the exposure of approximately 4.4 billion Brazilian real (1.4 billion US dollar) as a possible risk, and accordingly has not recorded a provision for such amount, and approximately
37 million Brazilian real (12 m US dollar) as a probable loss.
1 Amounts have been converted to US dollar at the closing rate of the respective period.
42
In December 2011, Ambev received a tax assessment related to the goodwill amortization resulting
from the Inbev Holding Brasil S.A. merger with Ambev. In November 2014 the Lower Administrative Court concluded the judgment and now Ambev awaits the publication of the decision. As this decision was partly favorable, Ambev will present an appeal to
the Upper Administrative Court after such publication. Ambev management estimates the amount of possible losses in relation to this assessment to be approximately 4.4 billion Brazilian real (1.4 billion US dollar) as of 30 June 2015. Ambev has
not recorded any provision in connection therewith. In the event Ambev would be required to pay these amounts, Anheuser-Busch InBev SA/NV will reimburse Ambev the amount proportional to the benefit received by Anheuser-Busch InBev SA/NV pursuant to
the merger protocol, as well as the respective costs.
In October 2013, Ambev also received a tax assessment related to the goodwill
amortization resulting from the merger of QUINSA S.A. into Ambev. Ambev filed a defense in November 2013. In December 2014, Ambev filed an appeal against the unfavorable first level administrative decision published in November 2014. Ambev
management estimates the amount of possible losses in relation to this assessment to be approximately 1.3 billion Brazilian real (0.4 billion US dollar) as of 30 June 2015. Ambev has not recorded any provision in connection therewith.
Ambev and certain of its subsidiaries received a number of assessments from Brazilian federal tax authorities relating to the consumption of
income tax losses in relation to company mergers. After a decision by the CARF and a related appeal presented by the tax authorities on one of those assessments, Ambev management estimates the total exposures of possible losses in relation to these
assessments to be approximately of 437 million Brazilian real (141 m US dollar) as of 30 June 2015.
In December 2014, Ambev
received a tax assessment from the Brazilian Federal Tax Authorities related to the disallowance of alleged non-deductible expenses and the deduction of certain losses mainly associated to financial investments and loans. The defense was presented
on 28 January 2015. Ambev management estimates the amount of possible losses in relation to this assessment to be approximately 1.3 billion Brazilian real (0.4 billion US dollar) as of 30 June 2015. Ambev has not recorded any provision in
connection therewith.
During 2014 and the first quarter of 2015, Ambev received tax assessments from the Brazilian Federal Tax Authorities
related to the disallowance of deductions associated with alleged unproven taxes paid abroad, for which the decision from the Upper House of the Administrative Court is still pending. Ambev management estimates the possible losses related to these
assessments to be approximately 934 million Brazilian real (301m US dollar) as of 30 June 2015. Ambev has not recorded any provision in connection therewith.
ICMS VALUE ADDED TAX, IPI EXCISE TAX AND TAXES ON NET SALES
In Brazil, goods manufactured within the Manaus Free Trade Zone intended for remittance elsewhere in Brazil are exempt from IPI excise tax.
Ambevs subsidiaries have been registering IPI excise tax presumed credits upon the acquisition of exempted inputs manufactured therein. Since 2009, Ambev has been receiving a number of tax assessments from the Brazilian Federal Tax Authorities
relating to the disallowance of such presumed credits and other IPI credits, which are under discussion. Ambev management estimates the possible losses related to these assessments to be approximately 1.1 billion Brazilian real (0.4 billion US
dollar) as of 30 June 2015. Ambev has not recorded any provision in connection therewith.
In 2014 and 2015, Ambev received tax
assessments from the Brazilian Federal Tax Authorities relating to IPI excise tax, supposedly due over remittances of manufactured goods to other related factories, for which the decision from the Upper House of the Administrative Court is still
pending. Ambev management estimates the possible losses related to these assessments to be approximately 1.1 billion Brazilian real (0.4 billion US dollar) as of 30 June 2015. Ambev has not recorded any provision in connection therewith.
Ambev is currently challenging tax assessments from the States of São Paulo, Rio de Janeiro and Minas Gerais, which question the legality
of tax credits arising from existing tax incentives received by Ambev in other States. In August 2014, Ambev received other tax assessments related to the same issue. Ambev management estimates the possible losses related to these assessments to be
approximately 1.1 billion Brazilian real (0.4 billion US dollar) as of 30 June 2015. Ambev has not recorded any provision in connection therewith.
Ambev is currently party to legal proceedings with the State of Rio de Janeiro where it is challenging such States attempt to assess ICMS
with respect to unconditional discounts granted by Ambev from January 1996 to February 1998. These proceedings are currently before the Superior Court of Justice and the Brazilian Supreme Court. In 2013 and 2014, Ambev received similar tax
assessments issued by the State of Pará, relating to the same issue. Ambev management estimates the total exposure in relation to the matter to be approximately 840 million Brazilian real (271m US dollar) as of 30 June 2015, of
which 722 million Brazilian real (233m US dollar) are considered as possible losses, and accordingly Ambev has not recorded a provision for such amount, and approximately 117 million Brazilian real (38m US dollar) as a probable loss, in
connection with one tax proceeding for which Ambev believes there is a probable chance of loss.
OTHER TAX MATTERS
During 2014, Anheuser-Busch InBev Worldwide Inc. received a net proposed tax assessment from the United States federal tax authorities (IRS) of
0.3 billion US dollar predominantly involving certain inter-company transactions, related to tax returns for the years 2008 and 2009. Anheuser-Busch InBev Worldwide Inc. has filed protests with the IRS and intends to vigorously defend its position.
In February 2015, the European Commission opened an in-depth State Aid investigation into the Belgian excess profit ruling system. AB InBev
has a Belgian excess profit ruling. Depending on the outcome of the investigation, the European Commission could require Belgium to recover from the company past taxes reflective of the disallowed state aid. The company has not recorded any
provisions for any potential additional tax payment at this point in time, as AB InBev management does not know whether the company will eventually face any such payment and, in any event, cannot at this stage reliably estimate the appropriate
amount. In addition, the company cannot at this stage estimate the likely timing of the resolution of this matter.
43
WARRANTS
Certain holders of warrants issued by Ambev in 1996 for exercise in 2003 proposed lawsuits to subscribe correspondent shares for an amount lower
than Ambev considers as established upon the warrant issuance. In case Ambev loses the totality of these lawsuits, the issuance of 172,831,575 shares would be necessary. Ambev would receive in consideration funds that are materially lower than the
current market value. This could result in a dilution of about 1% to all Ambev shareholders. Furthermore, the holders of these warrants are claiming that they should receive the dividends relative to these shares since 2003, approximately 600
million Brazilian real (193m US dollar) in addition to legal fees. Ambev disputes these claims and intends to continue to vigorously defend its case.
ANTITRUST
MATTERS
On 22 July 2009, CADE, the Brazilian antitrust authority issued its ruling in Administrative Proceeding
No. 08012.003805/2004-10. This proceeding was initiated in 2004 as a result of a complaint filed by Schincariol (a South American brewery and beverage maker based in Brazil) and had, as its main purpose, the investigation of Ambevs
conduct in the market, in particular its customer loyalty program known as Tô Contigo, which is similar to airline frequent flyer and other mileage programs. After the administrative investigation, CADE issued a ruling that, among
other things, imposed a fine in the amount of 353 million Brazilian real (114m US dollar). Ambev challenged the decision before the federal courts, which ordered the suspension of the fine and other parts of the decision upon its posting of a
guarantee. According to the opinion of Ambevs management, a loss was possible (but not probable), and therefore Ambev had not established a provision in its financial statements. This possible loss was expected to be limited to the
aforementioned fine (which reached 620 million Brazilian Real (200m US dollar) as of 30 June 2015, reflecting adjustment for inflation and accrued interests) and additional legal fees in connection with this matter. On 14 July 2015,
CADE and Ambev reached a judicial settlement to definitely close the lawsuit relating to the decision issued by CADE in the Administrative Proceeding n. 08012.003805/2004-10. With this settlement, Ambev agreed to pay a fine in the amount of
229 million Brazilian real (77m US dollar). The final amount agreed upon the parties is the result of the correction of some mistakes in the original decision, as well as an approximate 20% discount granted by CADE.
In August 2011, the German Federal Cartel Office (Bundeskartellamt) launched an investigation against several breweries and retailers in
Germany in connection with an allegation of anticompetitive vertical price maintenance by breweries vis-à-vis their trading partners in Germany. On 18 June 2015, the Bundeskartellamt announced that it partially concluded these
proceedings and issued fines. Due to AB InBevs cooperation with the Bundeskartellamt, AB InBev received immunity from fines. Although the investigation of the Bundeskartellamt is partially continuing, AB InBev has reason to believe that it
will not receive a fine and that it will have full immunity from fines at the end of the proceedings.
On 12 December 2014 a lawsuit
was commenced in the Ontario Superior Court of Justice against the Liquor Control Board of Ontario, Brewers Retail Inc. (The Beer Store) and the owners of Brewers Retail Inc. (Molson Coors Canada, Sleeman Breweries Ltd. and Labatt Breweries of
Canada LP). The lawsuit was amended by the claimants on 20 May 2015. The lawsuit, brought pursuant to the Ontario Class Proceedings Act, seeks, among other things: a declaration that the defendants conspired and agreed with each other to
allocate sales, territories, customers or markets for the supply of beer sold in Ontario since June 1, 2000, a declaration that Brewers Retail Inc. and the owners of Brewers Retail Inc. conspired and agreed to fix, increase and/or maintain the
fees charged by The Beer Store to other competitive brewers who wished to sell their products through The Beer Store, a declaration that the parties conspired to impose higher/differential prices to Ontario licensees (on-trade) for beer, which the
claimants allege is illegal under the Liquor Control Act and a declaration that The Beer Store was not permitted by law to charge licensee prices that are in excess of retail prices for beer. The claimants are seeking damages not
exceeding 1.4 billion Canadian dollar (1.1 billion US dollar), punitive, exemplary and aggravated damages of 5 million Canadian dollar (4m US dollar) and disgorgement of certain revenues. The company believes that there are strong defenses and,
accordingly, has not recorded any provision in connection therewith.
2009 DISPOSITIONS PENSION LITIGATION
On 1 December 2009, AB InBev and several of its related companies were sued in Federal Court in the Eastern District of Missouri in a
lawsuit styled Richard F. Angevine v. AB InBev, et al. The plaintiff sought to represent a class of certain employees of Busch Entertainment Corporation, which was divested on 1 December 2009, and the four Metal Container Corporation plants
which were divested on 1 October 2009. He also sought to represent certain employees of any other subsidiary of Anheuser-Busch Companies, Inc. (ABC) which were divested on 1 October 2009. The lawsuit contained claims that the class was
entitled to enhanced retirement benefits under sections 4.3 and 19.11(f) of the Anheuser-Busch Companies Salaried Employees Pension Plan (the Plan). Specifically, plaintiff alleged that the divestitures resulted in his
involuntary termination from ABC and its operating division and subsidiaries within three years after the 18 November 2008 ABC/InBev merger, which allegedly triggered the enhanced benefits under the Plan. The lawsuit
claimed that by failing to provide the class members with these enhanced benefits, AB InBev, et al. breached their fiduciary duties under ERISA. The complaint sought punitive damages and attorneys fees. On 16 July 2010, the Court ruled
that the claims for breach of fiduciary duty and punitive damages were not proper. The Court also found that Angevine did not exhaust his administrative remedies, which he must first do before filing a lawsuit. Angevine filed an appeal of this
ruling with the Eighth Circuit Court of Appeals. On 22 July 2011, the Court of Appeals affirmed the decision of the lower court. No further appeals were filed.
On 15 September 2010, AB InBev and several of its related companies were sued in Federal Court for the Southern District of Ohio in a
lawsuit entitled Rusby Adams et al. v. AB InBev et al. This lawsuit was filed by four employees of Metal Container Corporations facilities (MCC) in Columbus, Ohio, Gainesville, Florida, and Ft. Atkinson, Wisconsin that were
divested on 1 October 2009. Similar to the Angevine lawsuit, these plaintiffs seek to represent a class of participants of the Anheuser-Busch Companies Inc. Salaried Employees Pension Plan (the Plan) who had been
employed by subsidiaries of Anheuser-Busch Companies, Inc. that had been divested during the period of 18 November 2008 and 17 November 2011. The plaintiffs also allege claims similar to the Angevine lawsuit: (1) that they are
entitled to benefits under section 19.11(f) of the Plan; and (2) that the denial of benefits was a breach of fiduciary duty. AB InBev believed that it had defenses to these claims, and filed a motion to dismiss. On 25 April 2011, the Court
dismissed the breach of fiduciary duty claims, and the only remaining claim is for benefits under section
44
19.11(f). On 28 March 2012, the Court certified that the case could proceed as a class action comprised of former employees of the divested MCC operations. On 9 January 2013, the Court
granted AB InBevs motion for Judgment on the Administrative Record. The plaintiffs appealed this decision on 5 February 2013. On 11 July 2014, the Court of Appeals for the 6th
Circuit reversed the lower court and remanded the case for judgment against AB InBev. On 16 September 2014, AB InBevs Motion for Rehearing En Banc was denied. A Final Order and Judgment was then entered by the District Court on
24 December 2014, which ordered the Plan to provide the enhanced pension benefit under Section 19.11(f) to members of the certified class. The company believes that the total amount of the enhanced pension benefit is approximately 8m US
dollar. Plaintiffs counsel has received approximately 1m US dollar in legal fees.
On 10 January 2012, a class action complaint
asserting claims very similar to those asserted in the Angevine lawsuit was filed in Federal Court for the Eastern District of Missouri, styled Nancy Anderson et al. v. Anheuser-Busch Companies Pension Plan et al. Unlike the Angevine case, however,
the plaintiff in this matter alleges complete exhaustion of all administrative remedies. The company filed a motion to dismiss on 9 October 2012. This was still pending when the Court allowed the complaint to be amended on 19 November 2012
to name four new plaintiffs. AB InBev filed a motion to dismiss on 17 December 2012. While this motion was pending, on 11 March 2013 the Court consolidated the case with the Knowlton case (see below) which had been transferred from
California to Missouri.
On 10 October 2012, another class action complaint was filed against Anheuser-Busch Companies, LLC,
Anheuser-Busch Companies Pension Plan, Anheuser-Busch Companies Pension Plan Appeals Committee and the Anheuser-Busch Companies Pension Plans Administrative Committee by Brian Knowlton, an employee of the divested Busch Entertainment Corporation
(BEC). This complaint, filed in Federal Court in the Southern District of California, was amended on 12 October 2012. Like the other lawsuits, it claims that the employees of any divested assets were entitled to enhanced
retirement benefits under section 19.11(f) of the Plan. However, it specifically excludes the divested Metal Container Corporation facilities that have been included in the Adams class action. On 6 November 2012, the plaintiffs filed a motion
asking the court to move the Anderson case to California to join it with the Knowlton case for discovery. The company filed a motion to dismiss/motion to transfer the case to Missouri on 12 November 2012, which was granted on 30 January
2013. As outlined above, on 11 March 2013, the Knowlton case was then consolidated in Missouri with the Anderson case. On 19 April 2013 a consolidated complaint was filed, and a Motion to Dismiss was filed by the company on 10 May
2013. On 30 October 2013, the court dismissed the breach of fiduciary claims, and an answer was filed on 13 November 2013. On 19 November 2013, plaintiffs amended one count of the consolidated complaint. On 16 May 2014, the Court
granted class certification. The class consists of divested BEC employees. On 10 November 2014, Plaintiffs filed a Motion for Judgment on the Pleadings based on the decision by the Sixth Circuit Court of Appeals in the Adams case. On
July 8, 2015, the Court issued an order of partial judgment on the pleadings, holding that the employees of BEC were entitled to enhanced retirement benefits under the Plan. The Company believes that the total amount of the enhanced pension
benefit ordered by the Court is approximately 66m US dollar and is considering whether or not to appeal the decision.
There are no material changes to the
companys related party transactions during the first six months of 2015, compared to 2014.
22. |
EVENTS AFTER THE BALANCE SHEET DATE |
Bond issuance
On 23 July 2015 Anheuser-Busch InBev Finance Inc., a subsidiary of Anheuser-Busch InBev SA/NV issued 565 million USD
aggregate principal amount of fixed rate Notes due 2045. The Notes will bear interest at an annual rate of 4.600%.
Guangzhou Zhujiang
Brewery Co. Ltd
On 23 July 2015 Anheuser-Busch InBev entered into a subscription agreement for private placement of shares of
Guangzhou Zhujiang Brewery Co., Ltd (Zhujiang Brewery), investing no less than 1.6 billion RMB (approximately 258m US dollar) to increase its holdings in Zhujiang Brewery to 29.99%, subject to various regulatory approvals. This
additional investment allows the company to further deepen the strategic partnership with Zhujiang Brewery which started in the early 1980s.
45
AGGREGATED WEIGHTED NOMINAL TAX RATE
Calculated by applying the statutory tax rate of each country on the taxable basis of each entity and by dividing the resulting tax charge by
that taxable basis.
DILUTED EPS
Profit
attributable to equity holders of AB InBev divided by the fully diluted weighted average number of ordinary shares.
DILUTED WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES
Weighted average number of ordinary shares, adjusted by the effect of share options on issue.
EBIT
Profit from operations.
EBITDA
Profit from operations plus depreciation,
amortization and impairment.
EPS
Profit
attributable to equity holders of AB InBev divided by the weighted average number of ordinary shares.
INVESTED CAPITAL
Includes property, plant and equipment, goodwill and intangible assets, investments in associates and equity securities, working capital,
provisions, employee benefits and deferred taxes.
MARKETING EXPENSES
Include all costs relating to the support and promotion of the brands. They include among others operating costs (payroll, office costs, etc.)
of the marketing department, advertising costs (agency costs, media costs, etc.), sponsoring and events, and surveys and market research.
NET CAPEX
Acquisitions of property, plant and equipment and of intangible assets, minus proceeds from sale.
NET DEBT
Non-current and current interest-bearing
loans and borrowings and bank overdrafts, minus debt securities and cash.
NON-RECURRING ITEMS
Items of income or expense which do not occur regularly as part of the normal activities of the company.
NORMALIZED
The term normalized refers to
performance measures (EBITDA, EBIT, Profit, EPS, effective tax rate) before non-recurring items. Non-recurring items are items of income or expense which do not occur regularly as part of the normal activities of the company and which warrant
separate disclosure because they are important for the understanding of the underlying results of the company due to their size or nature. AB InBev believes that the communication and explanation of normalized measures is essential for readers
of its financial statements to understand fully the sustainable performance of the company. Normalized measures are additional measures used by management and should not replace the measures determined in accordance with IFRS as an indicator of the
companys performance.
NORMALIZED DILUTED EPS
Diluted EPS adjusted for non-recurring items.
NORMALIZED
EBIT
Profit from operations adjusted for non-recurring items.
NORMALIZED EBITDA
Profit from operations adjusted for
non-recurring items, plus depreciation, amortization and impairment.
NORMALIZED EFFECTIVE TAX RATE
Effective tax rate adjusted for non-recurring items.
NORMALIZED EPS
EPS adjusted for non-recurring items.
NORMALIZED PROFIT
Profit adjusted for
non-recurring items.
NORMALIZED PROFIT FROM OPERATIONS
Profit from operations adjusted for non-recurring items.
PAY OUT RATIO
Gross dividend per share multiplied by
the estimated number of ordinary shares outstanding at the dividend record date, divided by normalized profit attributable to equity holders of AB InBev.
REVENUE
Gross revenue less excise taxes and
discounts.
SALES EXPENSES
Include all costs
relating to the selling of the products. They include among others the operating costs (payroll, office costs, etc.) of the sales department and the sales force.
46
SCOPE
Financials are analyzed eliminating the impact of changes in currencies on translation of foreign operations, and scopes. A scope represents the
impact of acquisitions and divestitures, the start-up 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.
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
Number of shares outstanding at the beginning of the period, adjusted by the number of shares cancelled, repurchased or issued during the period
multiplied by a time-weighing factor.
WORKING CAPITAL
Includes inventories, trade and other receivables and trade and other payables, both current and non-current.
47
Anheuser Busch Inbev SA NV (NYSE:BUD)
Historical Stock Chart
From Apr 2024 to May 2024
Anheuser Busch Inbev SA NV (NYSE:BUD)
Historical Stock Chart
From May 2023 to May 2024