Diversified global footprint and consistent execution of our
strategy delivered an EBITDA increase of 7.1% and Underlying EPS
growth of 14%
Anheuser-Busch InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH)
(NYSE:BUD):
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AB InBev Strategic Priorities (Graphic:
Business Wire)
Regulated and inside information1
“Beer is a passion point for consumers. Consumer demand for our
megabrands and the execution of our mega platforms delivered
another quarter of top- and bottom-line growth with margin
expansion. Our teams and partners continue to execute our strategy
and we are confident in our ability to deliver on our raised FY24
EBITDA growth outlook of 6-8%.” – Michel Doukeris, CEO, AB
InBev
Total Revenue
+ 2.1%
Revenue increased by 2.1% in 3Q24
with revenue per hl growth of 4.6% and by 2.5% in 9M24 with revenue
per hl growth of 3.9%.
3.1% increase in combined
revenues of our megabrands, led by Corona, which grew by 10.2%
outside of its home market in 3Q24.
72% of our revenue is
through B2B digital platforms with the monthly active user base of
BEES reaching 3.9 million users in 3Q24.
Approximately 140 million
USD of revenue generated by our digital direct-to-consumer
ecosystem in 3Q24.
Total Volume
- 2.4%
In 3Q24, total volumes declined
by 2.4%, with own beer volumes down by 3.1% and non-beer volumes up
by 0.6%.
In 9M24, total volumes declined
by 1.3% with own beer volumes down by 1.9% and non-beer volumes up
by 2.5%.
Normalized EBITDA
+ 7.1%
In 3Q24, normalized EBITDA
increased by 7.1% to 5 424 million USD with a normalized EBITDA
margin expansion of 169bps to 36.0%.
In 9M24, normalized EBITDA
increased by 7.6% to 15 712 million USD with a normalized EBITDA
margin expansion of 166bps to 35.0%.
Underlying Profit
1 971 million USD
Underlying profit (profit
attributable to equity holders of AB InBev excluding non-underlying
items and the impact of hyperinflation) was 1 971 million USD in
3Q24 compared to 1 735 million USD in 3Q23 and was 5 291 million
USD in 9M24 compared to 4 497 million USD in 9M23.
Underlying EPS
0.98 USD
Underlying EPS was 0.98 USD in
3Q24, an increase from 0.86 USD in 3Q23 and was 2.64 USD in 9M24,
an increase from 2.23 USD in 9M23.
Capital Allocation
2 billion USD Share buyback
program
The AB InBev Board of Directors
has approved a 2 billion USD share buyback program to be executed
within the next 12 months. For further details please see the
Recent Events section on page 14.
1The enclosed information constitutes
inside information as defined in Regulation (EU) No 596/2014 of the
European Parliament and of the Council of 16 April 2014 on market
abuse, and regulated information as defined in the Belgian Royal
Decree of 14 November 2007 regarding the duties of issuers of
financial instruments which have been admitted for trading on a
regulated market. For important disclaimers and notes on the basis
of preparation, please refer to page 15.
Management comments
Diversified global footprint and consistent execution of our
strategy delivered an EBITDA increase of 7.1% and Underlying EPS
growth of 14%
Top-line increased by 2.1%, with revenue growth in more than 60%
of our markets, driven by a revenue per hl increase of 4.6% as a
result of revenue management initiatives and ongoing
premiumization. We estimate we gained or maintained market share in
60% of our markets with volumes increasing in 50% of them. Overall
volume performance was however impacted by a soft consumer
environment in China and Argentina, resulting in an overall decline
of 2.4%. EBITDA increased by 7.1% with production cost efficiencies
and disciplined overhead management driving EBITDA margin expansion
of 169bps. Underlying EPS was 0.98 USD, a 14% increase versus 3Q23,
driven by nominal EBIT growth and continued optimization of our net
finance costs.
Progressing our strategic priorities
We continue to execute on and invest in three key strategic
pillars to deliver consistent growth and long-term value
creation.
(1) Lead and grow the category:
We estimate we gained or maintained market share in 60% of our
markets this quarter, with continued investment in our brands
driving an increase in overall portfolio brand power.
(2) Digitize and monetize our ecosystem:
BEES captured 12.1 billion USD of gross merchandise value (GMV),
a 14% increase versus 3Q23 with 72% of our revenue through B2B
digital channels. BEES Marketplace captured 630 million USD in GMV
from sales of third-party products, a 51% increase versus 3Q23.
(3) Optimize our business:
Underlying EPS increased by 14% to reach 0.98 USD, driven by
nominal EBIT growth, continued margin expansion and optimization of
our net finance costs. With increased flexibility in our capital
allocation choices, the AB InBev Board of Directors has approved a
2 billion USD share buyback program to be executed within the next
12 months.
(1) Lead and grow the category
We are executing on our five replicable levers to drive category
expansion. Our performance across each of the levers was led by our
megabrands which delivered a 3.1% revenue increase in 3Q24.
- Category Participation: Through our focus on brand, pack
and liquid innovations, the percentage of beer consumers purchasing
our brands increased in a majority of our markets in 3Q24,
according to our estimates. Participation increases were led by
improvements with all consumer groups in the US.
- Core Superiority: Our mainstream portfolio delivered a
low-single digit revenue increase in 3Q24, driven by double-digit
growth in South Korea and the Dominican Republic.
- Occasions Development: Our global no-alcohol beer
portfolio delivered mid-thirties revenue growth this quarter.
Corona Cero, the official beer partner of the Olympic Games,
delivered triple-digit volume growth and Budweiser Zero grew volume
in the low twenties.
- Premiumization: In 3Q24, the Corona brand grew revenue
by 10.2% globally, outside of Mexico. Our overall above core beer
portfolio delivered a low-single digit revenue increase, with
growth constrained by a soft industry in China.
- Beyond Beer: Our global Beyond Beer business contributed
approximately 365 million USD of revenue in 3Q24, a low-single
digit decrease versus 3Q23, as growth in key brands such as Brutal
Fruit, Cutwater, Nutrl and Beats was primarily offset by soft
malt-based seltzer performance in North America.
(2) Digitize and monetize our ecosystem
- Digitizing our relationships with more than 6 million
customers globally: As of 30 September 2024, BEES is now live
in 28 markets with 72% of our revenues captured through B2B digital
platforms. In 3Q24, BEES had 3.9 million monthly active users and
captured 12.1 billion USD in gross merchandise value (GMV), both
growing 14% versus 3Q23. BEES Marketplace generated 9.5 million
orders and captured 630 million USD in GMV from sales of
third-party products in 3Q24, growth of 31% and 51% versus 3Q23
respectively.
- Leading the way in DTC solutions: Our omnichannel DTC
ecosystem of digital and physical products generated revenue of
approximately 350 million USD in 3Q24. Our DTC megabrands, Zé
Delivery, TaDa Delivery and PerfectDraft, are available in 21
markets, generated 18.6 million e-commerce orders and delivered
approximately 140 million USD in revenue this quarter, representing
11% growth versus 3Q23.
(3) Optimize our business
- Maximizing value creation: Our Underlying EPS was 0.98
USD this quarter, a 14% increase versus 3Q23, driven primarily by
nominal EBIT growth and optimization of our net finance costs. As a
result of our continued global momentum and strong free cash flow
generation, the AB InBev Board of Directors has approved a 2
billion USD share buyback program to be executed within the next 12
months.
- Advancing our sustainability priorities: In Climate
Action, our Scopes 1 and 2 emissions per hectoliter of production
were 4.48 kgCO2e/hl in 9M24, an improvement of 46% versus our 2017
baseline. In Water Stewardship, our water use efficiency ratio
improved to 2.47 hl per hl in 9M24 versus 2.53 hl per hl in 9M23,
as we continue working towards our ambition to reach 2.50 hl per hl
on an annual basis by 2025.
Creating a future with more cheers
Our business delivered another quarter of profitable growth with
an EBITDA increase of 7.1%. Net revenue per hl growth, an increase
in nominal EBIT and the continued optimization of our business
resulted in double-digit growth in Underlying EPS in both 3Q24 and
9M24. Our performance is a testament to the strength of the beer
category, our diversified global footprint and the continued
dedication and hard work of our people. The beer category is large
and growing, and our unique global leadership advantages,
replicable growth drivers and superior profitability position us
well to deliver on our purpose to create a future with more
cheers.
2024 Outlook
- Overall Performance: We expect our FY24 EBITDA to grow
between 6-8%. The outlook for FY24 reflects our current assessment
of inflation and other macroeconomic conditions.
- Net Finance Costs: Net pension interest expenses and
accretion expenses are expected to be in the range of 220 to 250
million USD per quarter, depending on currency and interest rate
fluctuations. We expect the average gross debt coupon in FY24 to be
approximately 4%.
- Effective Tax Rates (ETR): We expect the normalized ETR
in FY24 to be in the range of 27% to 29%. The ETR outlook does not
consider the impact of potential future changes in
legislation.
- Net Capital Expenditure: We expect net capital
expenditure of between 4.0 and 4.5 billion USD in FY24.
Figure 1. Consolidated
performance (million USD)
3Q23
3Q24
Organic
growth
Total Volumes (thousand hls)
151 891
148 039
-2.4%
AB InBev own beer
132 325
128 124
-3.1%
Non-beer volumes
18 589
18 691
0.6%
Third party products
977
1 223
25.2%
Revenue
15 574
15 046
2.1%
Gross profit
8 394
8 366
5.6%
Gross margin
53.9%
55.6%
183bps
Normalized EBITDA
5 431
5 424
7.1%
Normalized EBITDA margin
34.9%
36.0%
169bps
Normalized EBIT
4 027
4 091
8.9%
Normalized EBIT margin
25.9%
27.2%
171bps
Profit attributable to equity holders of
AB InBev
1 472
2 071
Underlying profit attributable to
equity holders of AB InBev
1 735
1 971
Earnings per share (USD)
0.73
1.03
Underlying earnings per share
(USD)
0.86
0.98
9M23
9M24
Organic
growth
Total Volumes (thousand hls)
440 021
433 877
-1.3%
AB InBev own beer
382 135
374 438
-1.9%
Non-beer volumes
54 812
56 157
2.5%
Third party products
3 075
3 282
6.7%
Revenue
44 907
44 927
2.5%
Gross profit
24 190
24 827
5.1%
Gross margin
53.9%
55.3%
140bps
Normalized EBITDA
15 099
15 712
7.6%
Normalized EBITDA margin
33.6%
35.0%
166bps
Normalized EBIT
11 099
11 638
8.6%
Normalized EBIT margin
24.7%
25.9%
147bps
Profit attributable to equity holders of
AB InBev
3 450
4 635
Underlying profit attributable to
equity holders of AB InBev
4 497
5 291
Earnings per share (USD)
1.71
2.31
Underlying earnings per share
(USD)
2.23
2.64
Figure 2. Volumes (thousand
hls)
3Q23
Scope
Organic
3Q24
Organic growth
growth
Total
Own beer
North America
23 007
-159
-83
22 764
-0.4%
0.0%
Middle Americas
37 931
-4
- 819
37 107
-2.2%
-1.7%
South America
39 733
-
- 231
39 502
-0.6%
-1.6%
EMEA
23 407
-
632
24 039
2.7%
0.9%
Asia Pacific
27 672
-
-3 158
24 514
-11.4%
-11.5%
Global Export and Holding Companies
141
-
-29
112
-20.5%
-49.4%
AB InBev Worldwide
151 891
- 163
-3 688
148 039
-2.4%
-3.1%
9M23
Scope
Organic
9M24
Organic growth
growth
Total
Own beer
North America
70 401
-470
-3 175
66 756
-4.5%
-5.1%
Middle Americas
110 095
-13
1 097
111 179
1.0%
1.4%
South America
115 756
-
61
115 818
0.1%
-1.0%
EMEA
66 249
-
2 672
68 921
4.0%
3.1%
Asia Pacific
77 261
-
-6 303
70 958
-8.2%
-8.1%
Global Export and Holding Companies
259
-
-14
244
-5.6%
1.3%
AB InBev Worldwide
440 021
- 484
-5 661
433 877
-1.3%
-1.9%
United States: Improved market share trend and productivity
initiatives delivered low-single digit top-line and double-digit
bottom-line growth
- Operating performance:
- 3Q24: Revenue increased by 1.8% with revenue per hl
increasing by 2.0% driven by revenue management initiatives.
Sales-to-wholesalers (STWs) declined by 0.2%, supported by one
additional selling-day in the quarter. Sales-to-retailers (STRs)
were down by 3.0% on a selling-day adjusted basis, outperforming
the industry according to our estimates. EBITDA grew by 13.7% with
a margin improvement of approximately 375bps, driven by
productivity initiatives and SG&A efficiencies.
- 9M24: Revenue declined by 2.8%, with revenue per hl
increasing by 1.8%. Our STWs declined by 4.5% and STRs were down by
6.8%. EBITDA increased by 2.9%.
- Commercial highlights: The beer industry remained
resilient in 3Q24, improving in both volume and revenue trends
quarter over quarter according to Circana, supported by the phasing
of key holidays. Our beer portfolio is estimated to have gained
market share this quarter, driven by Michelob Ultra and Busch
Light, which were two of the top three volume share gainers in the
industry. In Beyond Beer, our spirits-based ready-to-drink
portfolio delivered volume growth in the mid-teens, outperforming
the industry.
Mexico: Market share gain with margin expansion
- Operating performance:
- 3Q24: Revenue was flattish, with low-single digit
revenue per hl growth driven by revenue management initiatives.
Volumes declined by low-single digits, outperforming the industry
which was negatively impacted by adverse weather and a soft
consumer environment. EBITDA grew by mid-single digits with
continued margin expansion.
- 9M24: Revenue grew by mid-single digits with revenue per
hl growth of low-single digits. Volumes increased by low-single
digits, outperforming the industry. EBITDA grew by high-single
digits with margin expansion.
- Commercial highlights: Our above core portfolio
outperformed, delivering continued volume growth this quarter, led
by the performance of Modelo and Pacifico. We continued to progress
our digital initiatives, with BEES Marketplace growing GMV by 14%
versus 3Q23, and our digital DTC platform, TaDa Delivery,
generating approximately 1.1 million orders, a 36% increase versus
3Q23.
Colombia: Double-digit bottom-line growth with margin
expansion
- Operating performance:
- 3Q24: Revenue increased by high-single digits with
high-single digit revenue per hl growth, driven by pricing actions
and other revenue management initiatives. Beer volumes were
flattish while total volumes declined by low-single digits, as
industry service levels were impacted by a week-long national
trucking strike in September. EBITDA grew by low twenties with
margin expansion.
- 9M24: Revenue grew by low-teens with high-single digit
revenue per hl growth. Volumes increased by low-single digits.
EBITDA grew by high-teens with margin expansion.
- Commercial highlights: The beer category remained
resilient this quarter with our portfolio continuing to gain share
of total alcohol. Our performance was driven by our premium and
super premium brands which delivered high-teens volume growth, led
by Corona and Stella Artois. Our core beer portfolio continued to
grow, delivering a low-single digit revenue increase.
Brazil: Double-digit bottom-line growth with margin
expansion
- Operating performance:
- 3Q24: Revenue grew by 5.2% with revenue per hl growth of
3.8% driven by premiumization and revenue management initiatives.
Total volumes grew by 1.3%, with beer volumes increasing by 0.6%.
Non-beer volumes increased by 3.4%. EBITDA increased by 10.9% with
margin expansion of 174bps.
- 9M24: Total volumes grew by 3.2% with beer volumes up by
2.3% and non-beer volumes up by 5.8%. Revenue grew by 6.3% with a
revenue per hl increase of 2.9%. EBITDA grew by 17.6% with 309bps
of margin expansion.
- Commercial highlights: Our premium and super premium
beer brands continued to lead our growth this quarter, delivering
low twenties volume growth, led by Corona, Spaten and Original.
Within the core beer segment, Brahma’s momentum continued,
delivering a high-single digit volume increase. Non-beer
performance was led by our low- and no-sugar portfolio, which grew
volumes in the low twenties. We continued to progress our digital
initiatives, with BEES Marketplace growing GMV by 43% versus 3Q23,
and our digital DTC platform, Zé Delivery, generating over 16
million orders in 3Q24, an 8% increase versus 3Q23.
Europe: Continued premiumization with margin recovery
- Operating performance:
- 3Q24: Revenue was flattish with slight revenue per hl
growth driven by continued premiumization. Volume declined by
low-single digits, outperforming a soft industry in a majority of
our key markets according to our estimates. EBITDA grew by
low-single digits with margin recovery.
- 9M24: Volume grew by low-single digits, outperforming
the industry in a majority of our key markets according to our
estimates. Both revenue and revenue per hl increased by low-single
digits. EBITDA grew by low-teens with margin recovery driven by
top-line growth and cost efficiencies.
- Commercial highlights: We continued to premiumize our
portfolio in Europe, with our premium and super premium portfolio
making up approximately 57% of our revenue in 3Q24. Our performance
this quarter was driven by our megabrands, led by Corona which
delivered another quarter of double-digit volume growth. In the
no-alcohol beer segment, Corona Cero, the official beer partner of
the Olympic Games, delivered triple digit volume growth.
South Africa: Continued momentum delivered double digit top-
and bottom-line growth with margin expansion
- Operating performance:
- 3Q24: Revenue increased by low-teens, with low-single
digit volume growth and a revenue per hl increase of high-single
digits, driven by revenue management initiatives and continued
premiumization. EBITDA grew by mid-teens with margin
expansion.
- 9M24: Revenue grew by low-teens with high-single digit
revenue per hl growth and a mid-single digit increase in volume,
estimated to have outperformed the industry in both beer and Beyond
Beer. EBITDA increased by low twenties with margin expansion.
- Commercial highlights: The momentum of our business
continued with both our premium beer and Beyond Beer portfolios
estimated to have gained share of their respective segments. Our
performance was led by our above core beer brands, which grew
volumes by high-teens driven by Corona and Stella Artois. In Beyond
Beer, our portfolio grew volumes by high-single digits driven by
Flying Fish.
China: Revenue declined by double-digits, impacted by soft
industry
- Operating performance:
- 3Q24: Top-line performance was impacted by a soft
industry, particularly from continued weakness in the on-premise
channel. Revenue declined by 16.1% with volumes declining by 14.2%
and revenue per hl decreasing by 2.2%. EBITDA declined by 20.1%
with margin contraction of approximately 175bps.
- 9M24: Revenue declined by 11.7% with revenue per hl
declining by 1.2% and volumes decreasing by 10.6%. EBITDA declined
by 12.2% with margin contraction of 26bps.
- Commercial highlights: We continued to invest behind our
commercial strategy, focused on premiumization, channel and
geographic expansion, and digital transformation, even in the
context of a soft industry. We believe we are well positioned to
lead the premiumization of the beer category with our premium and
super premium portfolio contributing approximately two-thirds of
our revenue in 9M24. The brand power of our portfolio combined with
the long-term growth potential from geographic expansion and
industry premiumization remains a compelling value creation
opportunity. The roll out and adoption of the BEES platform
continued, as of September 2024, BEES is present in 306 cities with
approximately 70% of our revenue generated through digital
channels.
Highlights from our other markets
- Canada: Revenue was flattish this quarter with revenue
per hl growth of low-single digits, driven by revenue management
initiatives and continued premiumization. Volumes declined by
low-single digits, with beer volumes estimated to be in-line with
the industry. Our portfolio has momentum, with four of our beer
brands in the top five fastest growing in the country this quarter,
led by Michelob Ultra which was number one.
- Peru: Revenue grew by low-single digits this quarter
with revenue per hl growth of high-single digits, driven by revenue
management initiatives. Volumes declined by mid-single digits,
outperforming a soft industry according to our estimates, which was
negatively impacted by adverse weather.
- Ecuador: Revenue decreased by high-single digits in 3Q24
with volumes declining by high-single digits, estimated to be in
line with a soft industry, which was negatively impacted by rolling
blackouts and lower consumer confidence.
- Argentina: Volumes declined by mid-teens in 3Q24 as
overall consumer demand was impacted by inflationary pressures. For
FY24, the definition of organic revenue growth in Argentina has
been amended to cap the price growth to a maximum of 2% per month.
Revenue grew by high-single digits on this basis.
- Africa excluding South Africa: In Nigeria, our total
volumes grew by high-single digits this quarter, cycling a soft
industry in 3Q23. Revenue grew by strong double-digits, driven by
revenue management initiatives in a highly inflationary
environment. In our other markets in Africa, we grew volume in
aggregate by high-single digits in 3Q24, driven by Tanzania,
Mozambique, Zambia and Ghana.
- South Korea: Revenue increased by high-teens in 3Q24
with revenue per hl growth of low-teens, driven by revenue
management initiatives and positive brand and packaging mix.
Volumes grew by mid-single digits, outperforming the industry in
both the on-premise and in-home channels, with performance led by
our megabrand Cass.
Consolidated Income
Statement
Figure 3. Consolidated income
statement (million USD)
3Q23
3Q24
Organic
growth
Revenue
15 574
15 046
2.1%
Cost of sales
-7 180
-6 680
2.0%
Gross profit
8 394
8 366
5.6%
SG&A
-4 583
-4 490
-2.7%
Other operating income/(expenses)
217
215
5.6%
Normalized profit from operations
(normalized EBIT)
4 027
4 091
8.9%
Non-underlying items above EBIT (incl.
impairment losses)
-352
-125
Net finance income/(cost)
-1 223
-1 043
Non-underlying net finance
income/(cost)
84
236
Share of results of associates
95
89
Income tax expense
-666
-758
Profit
1 966
2 489
Profit attributable to non-controlling
interest
494
418
Profit attributable to equity holders of
AB InBev
1 472
2 071
Normalized EBITDA
5 431
5 424
7.1%
Underlying profit attributable to
equity holders of AB InBev
1 735
1 971
.
9M23
9M24
Organic
growth
Revenue
44 907
44 927
2.5%
Cost of sales
-20 717
-20 100
0.6%
Gross profit
24 190
24 827
5.1%
SG&A
-13 635
-13 738
-2.2%
Other operating income/(expenses)
544
548
0.4%
Normalized profit from operations
(normalized EBIT)
11 099
11 638
8.6%
Non-underlying items above EBIT (incl.
impairment losses)
-458
-244
Net finance income/(cost)
-3 743
-3 400
Non-underlying net finance
income/(cost)
-619
-294
Share of results of associates
201
226
Non-underlying share of results of
associates
-
104
Income tax expense
-1 858
-2 304
Profit
4 621
5 725
Profit attributable to non-controlling
interest
1 171
1 090
Profit attributable to equity holders of
AB InBev
3 450
4 635
Normalized EBITDA
15 099
15 712
7.6%
Underlying profit attributable to
equity holders of AB InBev
4 497
5 291
Non-underlying items above EBIT & Non-underlying share of
results of associates
Figure 4. Non-underlying items above
EBIT & Non-underlying share of results of associates (million
USD)
3Q23
3Q24
9M23
9M24
Restructuring
-28
-38
-78
-97
Business and asset disposal (incl.
impairment losses)
-324
-87
-361
-147
Claims and legal costs
-
-
-19
-
Non-underlying items in EBIT
-352
-125
-458
-244
Non-underlying share of results of
associates
-
-
-
104
Non-underlying share of results from associates of 9M24 includes
the impact from our associate Anadolu Efes’ adoption of IAS 29
hyperinflation accounting on their 2023 results.
Net finance income/(cost)
Figure 5. Net finance
income/(cost) (million USD)
3Q23
3Q24
9M23
9M24
Net interest expense
-789
-719
-2 419
-2 179
Net interest on net defined benefit
liabilities
-22
-22
-64
-67
Accretion expense
-194
-163
-579
-545
Net interest income on Brazilian tax
credits
29
34
107
95
Other financial results
-247
-173
-787
-704
Net finance income/(cost)
-1 223
-1 043
-3 743
-3 400
Non-underlying net finance income/(cost)
Figure 6. Non-underlying net
finance income/(cost) (million USD)
3Q23
3Q24
9M23
9M24
Mark-to-market
84
236
-619
-271
Gain/(loss) on bond redemption and
other
-
-
-
-23
Non-underlying net finance
income/(cost)
84
236
-619
-294
Non-underlying net finance cost in 9M24 includes mark-to-market
losses on derivative instruments entered into in order to hedge our
share-based payment programs and shares issued in relation to the
combination with Grupo Modelo and SAB.
The number of shares covered by the hedging of our share-based
payment program, the deferred share instrument and the restricted
shares are shown in figure 7, together with the opening and closing
share prices.
Figure 7. Non-underlying
equity derivative instruments
3Q23
3Q24
9M23
9M24
Share price at the start of the period
(Euro)
51.83
54.12
56.27
58.42
Share price at the end of the period
(Euro)
52.51
59.38
52.51
59.38
Number of equity derivative instruments at
the end of the period (millions)
100.5
100.5
100.5
100.5
Income tax expense
Figure 8. Income tax expense
(million USD)
3Q23
3Q24
9M23
9M24
Income tax expense
666
758
1 858
2 304
Effective tax rate
26.3%
24.0%
29.6%
29.9%
Normalized effective tax rate
25.2%
25.5%
26.5%
26.6%
The 3Q23 and 3Q24 effective tax rates were positively impacted
by non-taxable gains from derivatives related to the hedging of
share-based payment programs and of the shares issued in a
transaction related to the combination with Grupo Modelo and
SAB.
Furthermore, the 9M24 effective tax rate includes 114 million
USD of non-underlying tax expenses, reflecting mainly the impact of
a 240 million USD (4.5 billion ZAR) non-underlying tax cost
following the resolution of the South African tax matters as
described in note 21 Contingencies of the HY24 Unaudited Interim
Report and the release of tax provisions.
Figure 9. Underlying Profit
attributable to equity holders of AB InBev (million USD)
3Q23
3Q24
9M23
9M24
Profit attributable to equity holders
of AB InBev
1 472
2 071
3 450
4 635
Net impact of non-underlying items on
profit
224
-133
973
542
Hyperinflation impacts in underlying
profit
39
33
74
114
Underlying profit attributable to
equity holders of AB InBev
1 735
1 971
4 497
5 291
Basic and underlying EPS
Figure 10. Earnings per share
(USD)
3Q23
3Q24
9M23
9M24
Basic EPS
0.73
1.03
1.71
2.31
Net impact of non-underlying items on
profit
0.11
-0.07
0.48
0.27
Hyperinflation impacts in EPS
0.02
0.02
0.04
0.06
Underlying EPS
0.86
0.98
2.23
2.64
Weighted average number of ordinary and
restricted shares (million)
2 016
2 004
2 016
2 004
Figure 11. Key components -
Underlying EPS in USD
3Q23
3Q24
9M23
9M24
Normalized EBIT before
hyperinflation
2.02
2.06
5.56
5.84
Hyperinflation impacts in normalized
EBIT
-0.03
-0.02
-0.06
-0.04
Normalized EBIT
2.00
2.04
5.51
5.81
Net finance cost
-0.61
-0.52
-1.86
-1.70
Income tax expense
-0.35
-0.39
-0.97
-1.09
Associates & non-controlling
interest
-0.20
-0.17
-0.49
-0.43
Hyperinflation impacts in EPS
0.02
0.02
0.04
0.06
Underlying EPS
0.86
0.98
2.23
2.64
Weighted average number of ordinary and
restricted shares (million)
2 016
2 004
2 016
2 004
Reconciliation between normalized EBITDA and profit
attributable to equity holders
Figure 12. Reconciliation of
normalized EBITDA to profit attributable to equity holders of AB
InBev (million USD)
3Q23
3Q24
9M23
9M24
Profit attributable to equity holders
of AB InBev
1 472
2 071
3 450
4 635
Non-controlling interests
494
418
1 171
1 090
Profit
1 966
2 489
4 621
5 725
Income tax expense
666
758
1 858
2 304
Share of result of associates
-95
-89
-201
-226
Non-underlying share of results of
associates
-
-
-
- 104
Net finance (income)/cost
1 223
1 043
3 743
3 400
Non-underlying net finance
(income)/cost
-84
-236
619
294
Non-underlying items above EBIT (incl.
impairment losses)
352
125
458
244
Normalized EBIT
4 027
4 091
11 099
11 638
Depreciation, amortization and
impairment
1 403
1 333
3 999
4 074
Normalized EBITDA
5 431
5 424
15 099
15 712
Normalized EBITDA and normalized EBIT are measures utilized by
AB InBev to demonstrate the company’s underlying performance.
Normalized EBITDA is calculated excluding the following effects
from profit attributable to equity holders of AB InBev: (i)
non-controlling interest; (ii) income tax expense; (iii) share of
results of associates; (iv) non-underlying share of results of
associates; (v) net finance income or cost; (vi) non-underlying net
finance income or cost; (vii) non-underlying items above EBIT; and
(viii) depreciation, amortization and impairment.
Normalized EBITDA and normalized EBIT are not accounting
measures under IFRS and should not be considered as an alternative
to profit attributable to equity holders as a measure of
operational performance, or an alternative to cash flow as a
measure of liquidity. Normalized EBITDA and normalized EBIT do not
have a standard calculation method and AB InBev’s definition of
normalized EBITDA and normalized EBIT may not be comparable to that
of other companies.
Recent Events
Announcement of 2 Billion USD share buyback program to be
executed within the next 12 months
On 30 October 2024, the AB InBev Board of Directors approved a 2
billion USD share buyback program to be executed within the next 12
months. Based on the closing price of AB InBev’s ordinary shares on
the Euronext Brussels on 30 October, this amount represented
approximately 31.7 million shares. Such number of shares will
fluctuate depending on share price movements. The share buyback
program will be implemented in accordance with industry best
practices and in compliance with the applicable buyback rules and
regulations. To this end, an independent financial intermediary
will be appointed to repurchase on the basis of a discretionary
mandate. The precise timing of the repurchase of shares pursuant to
the program will depend on a variety of factors including market
conditions. During the share buyback program, the company will
regularly publish press releases with updates on the progress made
(if any) as required by law. This information will also be
available on the investor relations pages of our website under the
return of capital program section
(https://www.ab-inbev.com/investors/share-information/return-of-capital-program).
Our current intention is to hold the shares acquired as treasury
shares to fulfil future share delivery commitments under the stock
ownership plans. The program will be executed under the powers
granted at the General Meeting of Shareholders on 28 April
2021.
Notes
To facilitate the understanding of AB InBev’s underlying
performance, the analyses of growth, including all comments in this
press release, unless otherwise indicated, are based on organic
growth and normalized numbers. In other words, financials are
analyzed eliminating the impact of changes in currencies on
translation of foreign operations, and scope changes. For FY24, the
definition of organic revenue growth has been amended to cap the
price growth in Argentina to a maximum of 2% per month (26.8%
year-over-year). Corresponding adjustments are made to all income
statement related items in the organic growth calculations through
scope changes. Scope changes also represent the impact of
acquisitions and divestitures, the start or termination of
activities or the transfer of activities between segments,
curtailment gains and losses and year over year changes in
accounting estimates and other assumptions that management does not
consider as part of the underlying performance of the business. The
organic growth of our global brands, Budweiser, Stella Artois,
Corona and Michelob Ultra, excludes exports to Australia for which
a perpetual license was granted to a third party upon disposal of
the Australia operations in 2020. All references per hectoliter
(per hl) exclude US non-beer activities. Whenever presented in this
document, all performance measures (EBITDA, EBIT, profit, tax rate,
EPS) are presented on a “normalized” basis, which means they are
presented before non-underlying items. Non-underlying items are
either income or expenses which do not occur regularly as part of
the normal activities of the Company. They are presented separately
because they are important for the understanding of the underlying
sustainable performance of the Company due to their size or nature.
Normalized measures are additional measures used by management and
should not replace the measures determined in accordance with IFRS
as an indicator of the Company’s performance. We are reporting the
results from Argentina applying hyperinflation accounting since
3Q18. The IFRS rules (IAS 29) require us to restate the
year-to-date results for the change in the general purchasing power
of the local currency, using official indices before converting the
local amounts at the closing rate of the period. In 9M24, we
reported a negative impact from hyperinflation accounting on the
profit attributable to equity holders of AB InBev of 114 million
USD. The impact in 9M24 Basic EPS was -0.06 USD. Values in the
figures and annexes may not add up, due to rounding. 3Q24 and 9M24
EPS is based upon a weighted average of 2 004 million shares
compared to a weighted average of 2 016 million shares for 3Q23 and
9M23.
Legal disclaimer
This release contains “forward-looking statements”. These
statements are based on the current expectations and views of
future events and developments of the management of AB InBev and
are naturally subject to uncertainty and changes in circumstances.
The forward-looking statements contained in this release include
statements other than historical facts and include statements
typically containing words such as “will”, “may”, “should”,
“believe”, “intends”, “expects”, “anticipates”, “targets”,
“estimates”, “likely”, “foresees” and words of similar import. All
statements other than statements of historical facts are
forward-looking statements. You should not place undue reliance on
these forward-looking statements, which reflect the current views
of the management of AB InBev, are subject to numerous risks and
uncertainties about AB InBev and are dependent on many factors,
some of which are outside of AB InBev’s control. There are
important factors, risks and uncertainties that could cause actual
outcomes and results to be materially different, including, but not
limited to the risks and uncertainties relating to AB InBev that
are described under Item 3.D of AB InBev’s Annual Report on Form
20-F filed with the SEC on 11 March 2024. Many of these risks and
uncertainties are, and will be, exacerbated by any further
worsening of the global business and economic environment,
including as a result of the ongoing conflict in Russia and Ukraine
and in the Middle East, including the conflict in the Red Sea.
Other unknown or unpredictable factors could cause actual results
to differ materially from those in the forward-looking statements.
The forward-looking statements should be read in conjunction with
the other cautionary statements that are included elsewhere,
including AB InBev’s most recent Form 20-F and other reports
furnished on Form 6-K, and any other documents that AB InBev has
made public. Any forward-looking statements made in this
communication are qualified in their entirety by these cautionary
statements and there can be no assurance that the actual results or
developments anticipated by AB InBev will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, AB InBev or its business or
operations. Except as required by law, AB InBev undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The third quarter 2024 (3Q24) and nine months 2024
(9M24) financial data set out in Figure 1 (except for the volume
information), Figures 3 to 5, 6, 8, 9 and 12 of this press release
have been extracted from the group’s unaudited condensed
consolidated interim financial statements as of and for the nine
months ended 30 September 2024, which have been reviewed by our
statutory auditors PwC Réviseurs d’Entreprises SRL / PwC
Bedrijfsrevisoren BV in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Financial data
included in Figures 7, 10, and 11 have been extracted from the
underlying accounting records as of and for the nine months ended
30 September 2024 (except for the volume information). References
in this document to materials on our websites, such as
www.ab-inbev.com, are included as an aid to their location and are
not incorporated by reference into this document.
Conference call and
webcast
Investor Conference call and webcast on Thursday, 31 October
2024: 2.00pm Brussels / 1.00pm London / 9.00am New York
Registration details: Webcast (listen-only mode): AB
InBev 3Q24 Results Webcast
To join by phone, please use one of the following two phone
numbers: Toll-Free: +1-877-407-8029 Toll: +1-201-689-8029
About AB InBev
Anheuser-Busch InBev (AB InBev) is a publicly traded company
(Euronext: ABI) based in Leuven, Belgium, with secondary listings
on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock
exchanges and with American Depositary Receipts on the New York
Stock Exchange (NYSE: BUD). As a company, we dream big to create a
future with more cheers. We are always looking to serve up new ways
to meet life’s moments, move our industry forward and make a
meaningful impact in the world. We are committed to building great
brands that stand the test of time and to brewing the best beers
using the finest ingredients. Our diverse portfolio of well over
500 beer brands includes global brands Budweiser®, Corona®, Stella
Artois® and Michelob Ultra®; multi-country brands Beck’s®,
Hoegaarden® and Leffe®; and local champions such as Aguila®,
Antarctica®, Bud Light®, Brahma®, Cass®, Castle®, Castle Lite®,
Cristal®, Harbin®, Jupiler®, Modelo Especial®, Quilmes®, Victoria®,
Sedrin®, and Skol®. Our brewing heritage dates back more than 600
years, spanning continents and generations. From our European roots
at the Den Hoorn brewery in Leuven, Belgium. To the pioneering
spirit of the Anheuser & Co brewery in St. Louis, US. To the
creation of the Castle Brewery in South Africa during the
Johannesburg gold rush. To Bohemia, the first brewery in Brazil.
Geographically diversified with a balanced exposure to developed
and developing markets, we leverage the collective strengths of
approximately 155,000 colleagues based in nearly 50 countries
worldwide. For 2023, AB InBev’s reported revenue was 59.4 billion
USD (excluding JVs and associates).
Annex 1: Segment reporting
(3Q)
AB InBev Worldwide
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
151 891
-163
-
-3 688
148 039
-2.4%
of which AB InBev own beer
132 325
-159
-
-4 041
128 124
-3.1%
Revenue
15 574
76
-931
327
15 046
2.1%
Cost of sales
-7 180
-171
531
139
-6 680
2.0%
Gross profit
8 394
-95
-399
467
8 366
5.6%
SG&A
-4 583
-45
262
-123
-4 490
-2.7%
Other operating income/(expenses)
217
10
-23
11
215
5.6%
Normalized EBIT
4 027
-131
-161
355
4 091
8.9%
Normalized EBITDA
5 431
-135
-254
382
5 424
7.1%
Normalized EBITDA margin
34.9%
36.0%
169bps
North America
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
23 007
-159
-
-83
22 764
-0.4%
Revenue
3 863
-40
-13
58
3 867
1.5%
Cost of sales
-1 656
23
5
26
-1 602
1.6%
Gross profit
2 207
-17
-9
84
2 265
3.8%
SG&A
-1 168
-10
5
79
-1 094
6.9%
Other operating income/(expenses)
-2
-
-
9
8
-
Normalized EBIT
1 038
-27
-4
172
1 179
16.5%
Normalized EBITDA
1 231
-28
-4
160
1 358
12.9%
Normalized EBITDA margin
31.9%
35.1%
363bps
Middle Americas
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
37 931
-4
-
- 819
37 107
-2.2%
Revenue
4 338
-31
-287
83
4 103
1.9%
Cost of sales
-1 722
13
104
142
-1 462
8.3%
Gross profit
2 617
-18
-183
226
2 641
8.7%
SG&A
-995
12
74
-27
-937
-2.8%
Other operating income/(expenses)
16
-13
-1
1
3
-
Normalized EBIT
1 637
-19
-110
199
1 707
12.1%
Normalized EBITDA
2 051
-35
-139
190
2 068
9.3%
Normalized EBITDA margin
47.3%
50.4%
343bps
South America
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
39 733
-
-
- 231
39 502
-0.6%
Revenue
3 106
167
-516
175
2 932
5.6%
Cost of sales
-1 586
-213
346
-49
-1 502
-3.1%
Gross profit
1 521
-46
-170
126
1 430
8.2%
SG&A
-882
-116
157
-30
-870
-3.3%
Other operating income/(expenses)
105
20
-23
2
104
2.2%
Normalized EBIT
744
-142
-36
98
664
13.4%
Normalized EBITDA
1 013
-127
-86
108
908
10.7%
Normalized EBITDA margin
32.6%
31.0%
156bps
EMEA
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
23 407
-
-
632
24 039
2.7%
Revenue
2 266
4
-106
187
2 351
8.2%
Cost of sales
-1 181
-3
74
-77
-1 188
-6.5%
Gross profit
1 085
-
-32
110
1 163
10.1%
SG&A
-652
-27
18
-28
-689
-4.3%
Other operating income/(expenses)
62
1
-1
-15
47
-24.5%
Normalized EBIT
496
-26
-15
67
521
13.3%
Normalized EBITDA
752
-26
-28
82
780
10.8%
Normalized EBITDA margin
33.2%
33.2%
80bps
Asia Pacific
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
27 672
-
-
-3 158
24 514
-11.4%
Revenue
1 878
-1
-8
-178
1 691
-9.5%
Cost of sales
-886
-7
3
93
-797
10.4%
Gross profit
993
-8
-5
-86
894
-8.7%
SG&A
-567
-18
5
-
-580
-0.1%
Other operating income/(expenses)
34
1
-
-9
27
-26.3%
Normalized EBIT
460
-25
1
-96
340
-20.8%
Normalized EBITDA
625
-27
1
-95
503
-15.3%
Normalized EBITDA margin
33.3%
29.8%
-213bps
Global Export and Holding
Companies
3Q23
Scope
Currency
Translation
Organic
Growth
3Q24
Organic
Growth
Total volumes (thousand hls)
141
-
-
-29
112
-20.5%
Revenue
122
-22
-1
2
102
2.3%
Cost of sales
-151
16
-
5
-129
3.9%
Gross profit
-28
-6
-1
8
-27
22.1%
SG&A
-320
114
3
-117
-320
-33.6%
Other operating income/(expenses)
1
-
1
24
26
-
Normalized EBIT
-347
108
3
-85
-321
-22.3%
Normalized EBITDA
-240
107
3
-63
-194
-22.6%
Annex 2: Segment reporting
(9M)
AB InBev Worldwide
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
440 021
- 484
-
-5 661
433 877
-1.3%
of which AB InBev own beer
382 135
- 463
-
-7 233
374 438
-1.9%
Revenue
44 907
1 807
-2 900
1 113
44 927
2.5%
Cost of sales
-20 717
-1 190
1 679
128
-20 100
0.6%
Gross profit
24 190
617
-1 221
1 241
24 827
5.1%
SG&A
-13 635
- 717
908
- 293
-13 738
-2.2%
Other operating income/(expenses)
544
20
-18
2
548
0.4%
Normalized EBIT
11 099
- 80
- 331
950
11 638
8.6%
Normalized EBITDA
15 099
83
- 606
1 136
15 712
7.6%
Normalized EBITDA margin
33.6%
35.0%
166bps
North America
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
70 401
- 470
-
-3 175
66 756
-4.5%
Revenue
11 789
- 115
- 12
- 338
11 324
-2.9%
Cost of sales
-5 076
66
4
254
-4 752
5.1%
Gross profit
6 713
- 49
- 8
- 85
6 572
-1.3%
SG&A
-3 521
11
4
226
-3 280
6.5%
Other operating income/(expenses)
16
-
-
-17
-1
-
Normalized EBIT
3 209
- 38
- 3
124
3 291
3.9%
Normalized EBITDA
3 769
- 42
- 4
98
3 822
2.6%
Normalized EBITDA margin
32.0%
33.8%
183bps
Middle Americas
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
110 095
- 13
-
1 097
111 179
1.0%
Revenue
11 911
- 43
206
602
12 677
5.1%
Cost of sales
-4 648
-
- 78
84
-4 641
1.8%
Gross profit
7 263
- 42
129
686
8 036
9.5%
SG&A
-2 858
16
- 48
- 111
-3 002
-3.9%
Other operating income/(expenses)
24
-
1
1
26
-
Normalized EBIT
4 429
- 27
82
576
5 060
13.0%
Normalized EBITDA
5 545
- 34
97
564
6 172
10.2%
Normalized EBITDA margin
46.6%
48.7%
227bps
South America
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
115 756
-
-
61
115 818
0.1%
Revenue
8 956
1 979
-2 487
502
8 950
5.6%
Cost of sales
-4 535
-1 244
1 372
- 109
-4 515
-2.4%
Gross profit
4 421
736
-1 115
393
4 435
8.8%
SG&A
-2 686
- 836
820
- 85
-2 787
-3.1%
Other operating income/(expenses)
276
16
-14
42
319
15.2%
Normalized EBIT
2 011
- 85
- 309
350
1 967
17.8%
Normalized EBITDA
2 779
93
- 535
406
2 742
14.9%
Normalized EBITDA margin
31.0%
30.6%
267bps
EMEA
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
66 249
-
-
2 672
68 921
4.0%
Revenue
6 337
10
- 478
710
6 579
11.2%
Cost of sales
-3 392
- 9
323
- 324
-3 403
-9.5%
Gross profit
2 945
1
- 155
386
3 176
13.1%
SG&A
-1 959
- 34
88
- 89
-1 994
-4.5%
Other operating income/(expenses)
145
2
-4
-18
126
-12.0%
Normalized EBIT
1 131
-31
-71
279
1 308
24.7%
Normalized EBITDA
1 894
- 31
- 123
330
2 070
17.4%
Normalized EBITDA margin
29.9%
31.5%
167bps
Asia Pacific
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
77 261
-
-
-6 303
70 958
-8.2%
Revenue
5 557
-2
-131
-349
5 074
-6.3%
Cost of sales
-2 635
-20
58
216
-2 381
8.1%
Gross profit
2 921
-22
-73
-133
2 694
-4.6%
SG&A
-1 600
-26
40
12
-1 575
0.7%
Other operating income/(expenses)
87
2
-2
-5
82
-5.6%
Normalized EBIT
1 408
-45
-35
-126
1 202
-9.1%
Normalized EBITDA
1 897
-49
-47
-113
1 689
-6.0%
Normalized EBITDA margin
34.1%
33.3%
9bps
Global Export and Holding
Companies
9M23
Scope
Currency
Translation
Organic
Growth
9M24
Organic
Growth
Total volumes (thousand hls)
259
-
-
-14
244
-5.6%
Revenue
358
-22
1
-14
323
-4.2%
Cost of sales
-431
16
-
7
-408
1.7%
Gross profit
-73
-6
-
-7
-86
-
SG&A
-1 012
152
5
-246
-1 101
-24.5%
Other operating income/(expenses)
-4
-
-
-1
-5
-16.5%
Normalized EBIT
-1 089
146
5
-253
-1 191
-23.3%
Normalized EBITDA
-786
145
5
-148
-784
-19.0%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030139581/en/
Investors Shaun Fullalove E-mail:
shaun.fullalove@ab-inbev.com
Ekaterina Baillie E-mail:
ekaterina.baillie@ab-inbev.com
Cyrus Nentin E-mail: cyrus.nentin@ab-inbev.com
Media Media Relations E-mail:
media.relations@ab-inbev.com
Anheuser Busch Inbev SA NV (NYSE:BUD)
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