AB InBev Reports Third Quarter 2024 Results

Diversified global footprint and consistent execution of our strategy delivered an EBITDA increase of 7.1% and Underlying EPS growth of 14%

BRUSSELS -- (BUSINESS WIRE) --

Anheuser-Busch InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):

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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

1. 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.
2. 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%.
3. 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.
4. Net Capital Expenditure: We expect net capital expenditure of between 4.0 and 4.5 billion USD in FY24.