Article content
Continued global momentum, partially offset by US performance, delivered mid-single digit top- and bottom-line growth
BRUSSELS — AB InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):
Continued global momentum, partially offset by US performance, delivered mid-single digit top- and bottom-line growth
BRUSSELS — AB InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):
Article content
Regulated and inside information1
“The strength of our global footprint delivered another quarter of top- and bottom-line growth. Revenue increased by 5.0% with an EBITDA increase of 4.1%. We continue to invest in our strategic priorities for the long-term.” – Michel Doukeris, CEO, AB InBev
Advertisement 2
Story continues below
Article content
Total Revenue +5.0% Revenue increased by 5.0% in 3Q23 with revenue per hl growth of 9.0% and by 8.3% in 9M23 with revenue per hl growth of 10.1% . 15.1% increase in combined revenues of our global brands, Budweiser, Stella Artois, Corona and Michelob Ultra, outside of their respective home markets in 3Q23, and 16.2% in 9M23. Approximately 66% of our revenue through B2B digital platforms with the monthly active user base of BEES reaching 3.4 million users. Over 125 million USD of revenue generated by our digital direct-to-consumer ecosystem. Total Volume -3.4% In 3Q23, total volumes declined by 3.4%, with own beer volumes down by 4.0% and non-beer volumes up by 1.4%. In 9M23, total volumes declined by 1.4% with own beer volumes down by 1.9% and non-beer volumes up by 1.8%. Normalized EBITDA +4.1% In 3Q23, normalized EBITDA increased by 4.1% to 5 431 million USD with a normalized EBITDA margin contraction of 29 bps to 34.9%. In 9M23, normalized EBITDA increased by 7.3% to 15 099 million USD and normalized EBITDA margin contracted by 31 bps to 33.6%. Normalized EBITDA figures of 9M22 include an impact of 201 million USD from tax credits in Brazil. |
Underlying Profit 1 735 million USD Underlying profit (profit attributable to equity holders of AB InBev excluding non-underlying items and the impact of hyperinflation) was 1 735 million USD in 3Q23 compared to 1 682 million USD in 3Q22 and was 4 497 million USD in 9M23 compared to 4 354 million USD in 9M22. Underlying EPS 0.86 USD Underlying EPS was 0.86 USD in 3Q23, an increase from 0.84 USD in 3Q22 and was 2.23 USD in 9M23, an increase from 2.16 USD in 9M22. Capital Allocation 3 billion USD Debt redemption 1 billion USD Share buyback program The company has approved a cash tender offer for up to 3 billion USD in aggregate purchase price of outstanding bonds and the AB InBev Board of Directors has approved a 1 billion USD share buyback program to be executed within the next 12 months. For further details please see the Recent Events section on page 13. |
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 14. |
Advertisement 3
Story continues below
Article content
Management comments
Continued global momentum, partially offset by US performance, delivered mid-single digit top- and bottom-line growth
We delivered a top-line increase of 5.0%, with revenue growth in approximately 80% of our markets, driven by a revenue per hl increase of 9.0% as a result of pricing actions, ongoing premiumization and other revenue management initiatives. Volumes declined by 3.4%, as growth in our Middle Americas, Africa and APAC regions was primarily offset by performance in the US and a soft industry in Europe. EBITDA increased by 4.1% with margin compression of 29bps, as disciplined overhead management and efficient resource allocation enabled increased sales and marketing investments and partially offset anticipated commodity cost headwinds. Underlying EPS was 0.86 USD.
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.
Lead and grow the category:
This quarter we delivered revenue growth in approximately 80% of our markets.
Digitize and monetize our ecosystem:
BEES captured approximately 10.4 billion USD of gross merchandise value (GMV), a 27% increase versus 3Q22 with 66% of our revenue through B2B digital channels. BEES Marketplace is live in 15 markets and generated an annualized GMV of approximately 1.7 billion USD with 65% of BEES customers now also Marketplace buyers.
Optimize our business:
We continue to focus on deleveraging and have approved a cash tender offer for up to 3 billion USD in aggregate purchase price of outstanding bonds. In addition, as part of our objective to maximize value creation, the AB InBev Board of Directors has approved a 1 billion USD share buyback program to be executed within the next 12 months.
Lead and grow the category
Driven by our portfolio of megabrands, we are executing on our five proven and scalable levers to drive category expansion:
Article content
Advertisement 4
Story continues below
Article content
Digitize and monetize our ecosystem
BEES Marketplace is live in 15 markets with 65% of BEES customers also marketplace buyers. Marketplace captured approximately 420 million USD in GMV from sales of third-party products this quarter, growth of 52% versus 3Q22.
Optimize our business
Advertisement 5
Story continues below
Article content
Creating a future with more cheers
In 9M23, we delivered 8.3% revenue growth, with a 10.1% revenue per hl increase, and 7.3% EBITDA growth while continuing to invest for the long-term in our brands, capacity and digital transformation. The beer category is large and growing, and our unique global leadership advantages, replicable growth drivers and superior profitability position us well to generate value for our stakeholders and deliver on our purpose to create a future with more cheers.
2023 Outlook
(i) |
Overall Performance: We expect our EBITDA to grow in line with our medium-term outlook of between 4-8% and our revenue to grow ahead of EBITDA from a healthy combination of volume and price. The outlook for FY23 reflects our current assessment of inflation and other macroeconomic conditions. |
|
(ii) |
Net Finance Costs: Net pension interest expenses and accretion expenses are expected to be in the range of 200 to 230 million USD per quarter, depending on currency and interest rate fluctuations. We expect the average gross debt coupon in FY23 to be approximately 4%. |
|
(iii) |
Effective Tax Rates (ETR): We expect the normalized ETR in FY23 to be in the range of 27% to 29%. The ETR outlook does not consider the impact of potential future changes in legislation. |
|
(iv) |
Net Capital Expenditure: We expect net capital expenditure of between 4.5 and 5.0 billion USD in FY23. |
Figure 1. Consolidated performance (million USD) |
|||
3Q22 |
3Q23 |
Organic |
|
growth |
|||
Total Volumes (thousand hls) |
157 284 |
151 891 |
-3.4% |
AB InBev own beer |
137 796 |
132 325 |
-4.0% |
Non-beer volumes |
18 332 |
18 589 |
1.4% |
Third party products |
1 156 |
977 |
-14.2% |
Revenue |
15 091 |
15 574 |
5.0% |
Gross profit |
8 232 |
8 394 |
4.1% |
Gross margin |
54.5% |
53.9% |
-44 bps |
Normalized EBITDA |
5 313 |
5 431 |
4.1% |
Normalized EBITDA margin |
35.2% |
34.9% |
-29 bps |
Normalized EBIT |
4 055 |
4 027 |
2.7% |
Normalized EBIT margin |
26.9% |
25.9% |
-57 bps |
Profit attributable to equity holders of AB InBev |
1 433 |
1 472 |
|
Underlying profit attributable to equity holders of AB InBev |
1 682 |
1 735 |
|
Earnings per share (USD) |
0.71 |
0.73 |
|
Underlying earnings per share (USD) |
0.84 |
0.86 |
9M22 |
9M23 |
Organic |
|
growth |
|||
Total Volumes (thousand hls) |
446 358 |
440 021 |
-1.4% |
AB InBev own beer |
389 488 |
382 135 |
-1.9% |
Non-beer volumes |
53 820 |
54 812 |
1.8% |
Third party products |
3 050 |
3 075 |
2.4% |
Revenue |
43 118 |
44 907 |
8.3% |
Gross profit |
23 475 |
24 190 |
7.2% |
Gross margin |
54.4% |
53.9% |
-55 bps |
Normalized EBITDA |
14 896 |
15 099 |
7.3% |
Normalized EBITDA margin |
34.5% |
33.6% |
-31 bps |
Normalized EBIT |
11 160 |
11 099 |
6.2% |
Normalized EBIT margin |
25.9% |
24.7% |
-48 bps |
Profit attributable to equity holders of AB InBev |
3 126 |
3 450 |
|
Underlying profit attributable to equity holders of AB InBev |
4 354 |
4 497 |
|
Earnings per share (USD) |
1.55 |
1.71 |
|
Underlying earnings per share (USD) |
2.16 |
2.23 |
Advertisement 6
Story continues below
Article content
Figure 2. Volumes (thousand hls) |
||||||
3Q22 |
Scope |
Organic |
3Q23 |
Organic growth |
||
growth |
Total |
Own beer |
||||
North America |
27 775 |
-19 |
-4 749 |
23 007 |
-17.1% |
-17.9% |
Middle Americas |
37 314 |
– |
617 |
37 931 |
1.7% |
0.9% |
South America |
40 644 |
– |
– 911 |
39 733 |
-2.2% |
-2.6% |
EMEA |
23 724 |
49 |
-367 |
23 407 |
-1.5% |
-1.6% |
Asia Pacific |
27 610 |
– |
62 |
27 672 |
0.2% |
0.1% |
Global Export and Holding Companies |
217 |
-30 |
-46 |
141 |
-24.4% |
23.2% |
AB InBev Worldwide |
157 284 |
– |
-5 393 |
151 891 |
-3.4% |
-4.0% |
9M22 |
Scope |
Organic |
9M23 |
Organic growth |
||
growth |
Total |
Own beer |
||||
North America |
79 223 |
31 |
-8 853 |
70 401 |
-11.2% |
-11.6% |
Middle Americas |
109 338 |
– |
757 |
110 095 |
0.7% |
-0.2% |
South America |
117 459 |
– |
-1 703 |
115 756 |
-1.4% |
-2.0% |
EMEA |
66 686 |
153 |
– 591 |
66 249 |
-0.9% |
-1.1% |
Asia Pacific |
72 995 |
– |
4 266 |
77 261 |
5.8% |
5.7% |
Global Export and Holding Companies |
657 |
-185 |
-214 |
259 |
-45.2% |
-48.5% |
AB InBev Worldwide |
446 358 |
– |
-6 336 |
440 021 |
-1.4% |
-1.9% |
Key Market Performances
United States: Revenue declined by 13.5% impacted by volume performance
Mexico: Mid-single digit top- and bottom-line growth
Advertisement 7
Story continues below
Article content
Colombia: Double-digit top- and bottom-line growth
Brazil: Mid-single digit top-line and double-digit bottom-line growth with 628bps of margin expansion
Advertisement 8
Story continues below
Article content
Europe: Low-single digit top- and bottom-line growth
South Africa: Double digit top- and mid-single digit bottom-line growth
China: High-single digit top- and bottom-line growth
Advertisement 9
Story continues below
Article content
Highlights from our other markets
Consolidated Income Statement
Figure 3. Consolidated income statement (million USD) |
|||
3Q22 |
3Q23 |
Organic |
|
growth |
|||
Revenue |
15 091 |
15 574 |
5.0% |
Cost of sales |
-6 860 |
-7 180 |
-6.0% |
Gross profit |
8 232 |
8 394 |
4.1% |
SG&A |
-4 347 |
-4 583 |
-6.0% |
Other operating income/(expenses) |
170 |
217 |
18.8% |
Normalized profit from operations (normalized EBIT) |
4 055 |
4 027 |
2.7% |
Non-underlying items above EBIT (incl. impairment losses) |
-165 |
-352 |
|
Net finance income/(cost) |
-1 313 |
-1 223 |
|
Non-underlying net finance income/(cost) |
-144 |
84 |
|
Share of results of associates |
81 |
95 |
|
Income tax expense |
-688 |
-666 |
|
Profit |
1 825 |
1 966 |
|
Profit attributable to non-controlling interest |
392 |
494 |
|
Profit attributable to equity holders of AB InBev |
1 433 |
1 472 |
|
Normalized EBITDA |
5 313 |
5 431 |
4.1% |
Underlying profit attributable to equity holders of AB InBev |
1 682 |
1 735 |
Advertisement 10
Story continues below
Article content
9M22 |
9M23 |
Organic |
|
growth |
|||
Revenue |
43 118 |
44 907 |
8.3% |
Cost of sales |
-19 644 |
-20 717 |
-9.6% |
Gross profit |
23 475 |
24 190 |
7.2% |
SG&A |
-12 963 |
-13 635 |
-8.5% |
Other operating income/(expenses) |
648 |
544 |
23.4% |
Normalized profit from operations (normalized EBIT) |
11 160 |
11 099 |
6.2% |
Non-underlying items above EBIT (incl. impairment losses) |
-270 |
-458 |
|
Net finance income/(cost) |
-3 757 |
-3 743 |
|
Non-underlying net finance income/(cost) |
32 |
-619 |
|
Share of results of associates |
210 |
201 |
|
Non-underlying share of results of associates |
-1 143 |
– |
|
Income tax expense |
-1 933 |
-1 858 |
|
Profit |
4 299 |
4 621 |
|
Profit attributable to non-controlling interest |
1 174 |
1 171 |
|
Profit attributable to equity holders of AB InBev |
3 126 |
3 450 |
|
Normalized EBITDA |
14 896 |
15 099 |
7.3% |
Underlying profit attributable to equity holders of AB InBev |
4 354 |
4 497 |
We are reporting our Argentinean operation applying hyperinflation accounting under IAS 29, following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, since 2018. Inflation in Argentina has accelerated, resulting in a more significant impact on the organic revenue growth of AB InBev than historically. For illustrative purposes, fully excluding the Argentinean operation, the 3Q23 organic revenue increase for AB InBev would be 1.6% versus the 5.0% reported. For 9M23 revenue growth for AB InBev would be 4.9% versus the 8.3% reported.
Consolidated other operating income/(expenses) in 3Q23 increased by 23.4% primarily driven by higher government grants. In 9M22, Ambev recognized 201 million USD income in other operating income related to tax credits. The year-over-year change is presented as a scope change and does not affect the presented organic growth rates.
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) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
COVID-19 costs |
-2 |
– |
-16 |
– |
Restructuring |
-13 |
-28 |
-63 |
-78 |
Business and asset disposal (incl. impairment losses) |
-149 |
-324 |
-143 |
-361 |
Legal costs |
– |
– |
– |
-19 |
AB InBev Efes related costs |
-1 |
– |
-48 |
– |
Non-underlying items in EBIT |
-165 |
-352 |
-270 |
-458 |
Non-underlying share of results of associates |
– |
– |
-1 143 |
– |
EBIT excludes negative non-underlying items of 352 million USD in 3Q23 and 458 million USD in 9M23. In 3Q23, we recognized a loss of approximately 300 million USD upon disposal of a portfolio of eight beer and beverage brands and associated assets in the US to Tilray Brands, Inc.
Advertisement 11
Story continues below
Article content
Non-underlying share of results of associates of 9M22 includes the non-cash impairment of 1 143 million USD the company recorded on its investment in AB InBev Efes in 1Q22.
Net finance income/(cost)
Figure 5. Net finance income/(cost) (million USD) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Net interest expense |
-826 |
-789 |
-2 509 |
-2 419 |
Net interest on net defined benefit liabilities |
-18 |
-22 |
-55 |
-64 |
Accretion expense |
-215 |
-194 |
-551 |
-579 |
Net interest income on Brazilian tax credits |
34 |
29 |
146 |
107 |
Other financial results |
-287 |
-247 |
-788 |
-787 |
Net finance income/(cost) |
-1 313 |
-1 223 |
-3 757 |
-3 743 |
Non-underlying net finance income/(cost)
Figure 6. Non-underlying net finance income/(cost) (million USD) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Mark-to-market |
-144 |
84 |
152 |
-619 |
Gain/(loss) on bond redemption and other |
– |
– |
-120 |
– |
Non-underlying net finance income/(cost) |
-144 |
84 |
32 |
-619 |
Non-underlying net finance cost in 9M23 includes mark-to-market losses on derivative instruments entered into to hedge our shared-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 |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Share price at the start of the period (Euro) |
51.36 |
51.83 |
53.17 |
56.27 |
Share price at the end of the period (Euro) |
46.75 |
52.51 |
46.75 |
52.51 |
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) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Income tax expense |
688 |
666 |
1 933 |
1 858 |
Effective tax rate |
28.3% |
26.3% |
27.0% |
29.6% |
Normalized effective tax rate |
26.3% |
25.2% |
27.5% |
26.5% |
The decrease in normalized ETR in 3Q23 compared to 3Q22 and the decrease in 9M23 compared to 9M22 is driven by country mix.
Figure 9. Underlying Profit attributable to equity holders of AB InBev (million USD) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Profit attributable to equity holders of AB InBev |
1 433 |
1 472 |
3 126 |
3 450 |
Net impact of non-underlying items on profit |
274 |
224 |
1 280 |
973 |
Hyperinflation impacts in underlying profit |
– 26 |
39 |
– 52 |
74 |
Underlying profit attributable to equity holders of AB InBev |
1 682 |
1 735 |
4 354 |
4 497 |
Underlying profit attributable to equity holders in 3Q22 and 9M22 were positively impacted by 21 million USD and 172 million USD respectively, and in 3Q23 and 9M23 by 18 million USD and 66 million USD respectively, after tax and non-controlling interest related to tax credits in Brazil.
Advertisement 12
Story continues below
Article content
Basic and underlying EPS
Figure 10. Earnings per share (USD) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Basic EPS |
0.71 |
0.73 |
1.55 |
1.71 |
Net impact of non-underlying items on profit |
0.13 |
0.11 |
0.63 |
0.48 |
Hyperinflation impacts in EPS |
-0.01 |
0.02 |
-0.03 |
0.04 |
Underlying EPS |
0.84 |
0.86 |
2.16 |
2.23 |
Weighted average number of ordinary and restricted shares (million) |
2 012 |
2 016 |
2 012 |
2 016 |
Figure 11. Key components – Underlying EPS in USD |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Normalized EBIT before hyperinflation |
2.02 |
2.02 |
5.58 |
5.56 |
Hyperinflation impacts in normalized EBIT |
-0.01 |
-0.03 |
-0.03 |
-0.06 |
Normalized EBIT |
2.02 |
2.00 |
5.55 |
5.51 |
Net finance cost |
-0.65 |
-0.61 |
-1.87 |
-1.86 |
Income tax expense |
-0.36 |
-0.35 |
-1.01 |
-0.97 |
Associates & non-controlling interest |
-0.15 |
-0.20 |
-0.48 |
-0.49 |
Hyperinflation impacts in EPS |
-0.01 |
0.02 |
-0.03 |
0.04 |
Underlying EPS |
0.84 |
0.86 |
2.16 |
2.23 |
Weighted average number of ordinary and restricted shares (million) |
2 012 |
2 016 |
2 012 |
2 016 |
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) |
||||
3Q22 |
3Q23 |
9M22 |
9M23 |
|
Profit attributable to equity holders of AB InBev |
1 433 |
1 472 |
3 126 |
3 450 |
Non-controlling interests |
392 |
494 |
1 174 |
1 171 |
Profit |
1 825 |
1 966 |
4 299 |
4 621 |
Income tax expense |
688 |
666 |
1 933 |
1 858 |
Share of result of associates |
-81 |
-95 |
-210 |
-201 |
Non-underlying share of results of associates |
– |
– |
1 143 |
– |
Net finance (income)/cost |
1 313 |
1 223 |
3 757 |
3 743 |
Non-underlying net finance (income)/cost |
144 |
-84 |
-32 |
619 |
Non-underlying items above EBIT (incl. impairment losses) |
165 |
352 |
270 |
458 |
Normalized EBIT |
4 055 |
4 027 |
11 160 |
11 099 |
Depreciation, amortization and impairment |
1 259 |
1 403 |
3 736 |
3 999 |
Normalized EBITDA |
5 313 |
5 431 |
14 896 |
15 099 |
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 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 InBev’s definition of normalized EBITDA and normalized EBIT may not be comparable to that of other companies.
Advertisement 13
Story continues below
Article content
Recent Events
Announcement of 3 Billion USD cash tender offer
On 31st October 2023, the company approved the launch of a cash tender offer for up to 3 billion USD in aggregate purchase price of outstanding bonds. Additional details will be provided in the press release section of our website at https://www.ab-inbev.com/news-media/press-releases/.
Announcement of 1 Billion USD share buyback program to be executed within the next 12 months
On 30th October 2023, the AB InBev Board of Directors approved a 1 billion USD share buyback program to be executed within the next 12 months. 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 payouts section ( https://www.ab-inbev.com/investors/payouts/). 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. 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. 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. As from 1 January 2023, mark-to-market gains/(losses) on derivatives related to the hedging of our share-based payment programs are reported in the non-underlying net finance income/(cost). The 2022 presentation was amended to conform to the 2023 presentation. 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. These impacts are excluded from organic calculations. In 9M23, we reported a negative impact on the profit attributable to equity holders of AB InBev of 74 million USD. The impact in 9M23 underlying EPS was -0.04 USD. Values in the figures and annexes may not add up, due to rounding. 3Q23 and 9M23 EPS is based upon a weighted average of 2 016 million shares compared to a weighted average of 2 012 million shares for 3Q22 and 9M22.
Advertisement 14
Story continues below
Article content
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 17 March 2023. Many of these risks and uncertainties are, and will be, exacerbated by any further worsening of the global business and economic environment, the ongoing conflict in Russia and Ukraine and the Middle East and the COVID-19 pandemic. 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 2023 (3Q23) and the nine months 2023 (9M23) 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 2023, 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 2023 (except for the volume information). References in this document to materials on our websites, such as www.abinbev.com or www.bees.com, are included as an aid to their location and are not incorporated by reference into this document.
Advertisement 15
Story continues below
Article content
Conference call and webcast
Investor Conference call and webcast on Tuesday, 31 October 2023:
2.00pm Brussels / 1.00pm London / 9.00am New York
Registration details:
Webcast (listen-only mode):
AB InBev 3Q23 Results Webcast
To join by phone, please use one of the following two phone numbers:
Toll-Free: 877-407-8029
Toll: 201-689-8029
About Anheuser-Busch InBev (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 167,000 colleagues based in nearly 50 countries worldwide. For 2022, AB InBev’s reported revenue was 57.8 billion USD (excluding JVs and associates).
Annex 1: Segment reporting (3Q)
AB InBev Worldwide |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
157 284 |
– |
– |
– |
-5 393 |
151 891 |
-3.4% |
of which AB InBev own beer |
137 796 |
17 |
– |
– |
-5 488 |
132 325 |
-4.0% |
Revenue |
15 091 |
-16 |
-494 |
248 |
745 |
15 574 |
5.0% |
Cost of sales |
-6 860 |
1 |
257 |
-171 |
– 408 |
-7 180 |
-6.0% |
Gross profit |
8 232 |
-15 |
-237 |
77 |
337 |
8 394 |
4.1% |
SG&A |
-4 347 |
-10 |
116 |
-82 |
-259 |
-4 583 |
-6.0% |
Other operating income/(expenses) |
170 |
9 |
3 |
2 |
32 |
217 |
18.8% |
Normalized EBIT |
4 055 |
-16 |
-119 |
-3 |
110 |
4 027 |
2.7% |
Normalized EBITDA |
5 313 |
-6 |
-145 |
53 |
216 |
5 431 |
4.1% |
Normalized EBITDA margin |
35.2% |
34.9% |
-29 bps |
||||
North America |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
27 775 |
-19 |
– |
– |
-4 749 |
23 007 |
-17.1% |
Revenue |
4 442 |
-1 |
-15 |
– |
-564 |
3 863 |
-12.7% |
Cost of sales |
-1 800 |
– |
5 |
– |
140 |
-1 656 |
7.8% |
Gross profit |
2 642 |
-1 |
-10 |
– |
-424 |
2 207 |
-16.1% |
SG&A |
-1 142 |
-2 |
5 |
– |
-29 |
-1 168 |
-2.5% |
Other operating income/(expenses) |
6 |
– |
3 |
– |
-10 |
-2 |
– |
Normalized EBIT |
1 506 |
-3 |
-2 |
– |
-463 |
1 038 |
-30.8% |
Normalized EBITDA |
1 686 |
-3 |
-3 |
– |
-449 |
1 231 |
-26.7% |
Normalized EBITDA margin |
37.9% |
31.9% |
-608 bps |
||||
Middle Americas |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
37 314 |
– |
– |
– |
617 |
37 931 |
1.7% |
Revenue |
3 574 |
– |
368 |
– |
396 |
4 338 |
11.1% |
Cost of sales |
-1 395 |
-7 |
-134 |
– |
-186 |
-1 722 |
-13.3% |
Gross profit |
2 180 |
-7 |
234 |
– |
210 |
2 617 |
9.6% |
SG&A |
-880 |
-6 |
-98 |
– |
-11 |
-995 |
-1.2% |
Other operating income/(expenses) |
3 |
8 |
2 |
– |
3 |
16 |
– |
Normalized EBIT |
1 303 |
-5 |
137 |
– |
203 |
1 637 |
15.6% |
Normalized EBITDA |
1 631 |
3 |
181 |
– |
236 |
2 051 |
14.5% |
Normalized EBITDA margin |
45.6% |
47.3% |
141 bps |
||||
South America |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
40 644 |
– |
– |
– |
– 911 |
39 733 |
-2.2% |
Revenue |
2 887 |
1 |
-688 |
248 |
658 |
3 106 |
23.4% |
Cost of sales |
-1 522 |
– |
297 |
-171 |
-188 |
-1 586 |
-12.8% |
Gross profit |
1 364 |
1 |
-391 |
77 |
470 |
1 521 |
35.0% |
SG&A |
-854 |
-3 |
185 |
-82 |
-128 |
-882 |
-15.4% |
Other operating income/(expenses) |
64 |
5 |
1 |
2 |
32 |
105 |
47.5% |
Normalized EBIT |
574 |
2 |
-204 |
-3 |
375 |
744 |
64.7% |
Normalized EBITDA |
795 |
2 |
-258 |
53 |
421 |
1 013 |
54.5% |
Normalized EBITDA margin |
27.5% |
32.6% |
674 bps |
Advertisement 16
Story continues below
Article content
EMEA |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
23 724 |
49 |
– |
– |
-367 |
23 407 |
-1.5% |
Revenue |
2 110 |
17 |
-73 |
– |
212 |
2 266 |
9.9% |
Cost of sales |
-1 065 |
-10 |
49 |
– |
-155 |
-1 181 |
-14.4% |
Gross profit |
1 045 |
7 |
-24 |
– |
57 |
1 085 |
5.4% |
SG&A |
-627 |
-12 |
8 |
– |
-21 |
-652 |
-3.2% |
Other operating income/(expenses) |
50 |
-3 |
-1 |
– |
17 |
62 |
35.7% |
Normalized EBIT |
468 |
-8 |
-17 |
– |
53 |
496 |
11.5% |
Normalized EBITDA |
744 |
-8 |
-28 |
– |
45 |
752 |
6.1% |
Normalized EBITDA margin |
35.3% |
33.2% |
-121 bps |
||||
Asia Pacific |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
27 610 |
– |
– |
– |
62 |
27 672 |
0.2% |
Revenue |
1 876 |
-4 |
-90 |
– |
96 |
1 878 |
5.1% |
Cost of sales |
-889 |
– |
43 |
– |
-39 |
-886 |
-4.4% |
Gross profit |
987 |
-4 |
-47 |
56 |
993 |
5.7% |
|
SG&A |
-549 |
2 |
25 |
– |
-46 |
-567 |
-8.4% |
Other operating income/(expenses) |
36 |
– |
-2 |
– |
1 |
34 |
2.8% |
Normalized EBIT |
474 |
-1 |
-24 |
– |
12 |
460 |
2.5% |
Normalized EBITDA |
638 |
-1 |
-33 |
– |
21 |
625 |
3.3% |
Normalized EBITDA margin |
34.0% |
33.3% |
-59 bps |
||||
Global Export and Holding Companies |
3Q22 |
Scope |
Currency Translation |
Hyperinflation restatement |
Organic Growth |
3Q23 |
Organic Growth |
Total volumes (thousand hls) |
217 |
-30 |
– |
– |
-46 |
141 |
-24.4% |
Revenue |
202 |
-30 |
3 |
– |
-53 |
122 |
-30.6% |
Cost of sales |
-189 |
19 |
-2 |
– |
21 |
-151 |
12.3% |
Gross profit |
14 |
-11 |
1 |
– |
-32 |
-28 |
– |
SG&A |
-296 |
11 |
-9 |
– |
-26 |
-320 |
-9.2% |
Other operating income/(expenses) |
12 |
– |
– |
– |
-10 |
1 |
– |
Normalized EBIT |
-270 |
– |
-9 |
– |
-68 |
-347 |
-25.4% |
Normalized EBITDA |
-181 |
2 |
-4 |
– |
-58 |
-240 |
-32.2% |
Annex 2: Segment reporting (9M23)
AB InBev Worldwide |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
446 358 |
– |
– |
-6 336 |
440 021 |
-1.4% |
of which AB InBev own beer |
389 488 |
46 |
– |
-7 399 |
382 135 |
-1.9% |
Revenue |
43 118 |
-56 |
-1 704 |
3 549 |
44 907 |
8.3% |
Cost of sales |
-19 644 |
22 |
776 |
-1 871 |
-20 717 |
-9.6% |
Gross profit |
23 475 |
-34 |
-929 |
1 678 |
24 190 |
7.2% |
SG&A |
-12 963 |
-27 |
460 |
-1 104 |
-13 635 |
-8.5% |
Other operating income/(expenses) |
648 |
-194 |
-14 |
104 |
544 |
23.4% |
Normalized EBIT |
11 160 |
-255 |
-483 |
677 |
11 099 |
6.2% |
Normalized EBITDA |
14 896 |
-245 |
-616 |
1 064 |
15 099 |
7.3% |
Normalized EBITDA margin |
34.5% |
33.6% |
-31 bps |
|||
North America |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
79 223 |
31 |
– |
-8 853 |
70 401 |
-11.2% |
Revenue |
12 634 |
1 |
-82 |
-765 |
11 789 |
-6.1% |
Cost of sales |
-5 149 |
-3 |
28 |
48 |
-5 076 |
0.9% |
Gross profit |
7 486 |
-2 |
-54 |
-717 |
6 713 |
-9.6% |
SG&A |
-3 421 |
-30 |
30 |
-100 |
-3 521 |
-2.9% |
Other operating income/(expenses) |
34 |
– |
3 |
-20 |
16 |
– |
Normalized EBIT |
4 098 |
-32 |
-21 |
-837 |
3 209 |
-20.6% |
Normalized EBITDA |
4 660 |
-32 |
-25 |
-834 |
3 769 |
-18.0% |
Normalized EBITDA margin |
36.9% |
32.0% |
-466 bps |
|||
Middle Americas |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
109 338 |
– |
– |
757 |
110 095 |
0.7% |
Revenue |
10 267 |
– |
540 |
1 103 |
11 911 |
10.7% |
Cost of sales |
-4 020 |
-6 |
-192 |
-430 |
-4 648 |
-10.7% |
Gross profit |
6 248 |
-6 |
348 |
673 |
7 263 |
10.8% |
SG&A |
-2 511 |
-18 |
-151 |
-177 |
-2 858 |
-7.0% |
Other operating income/(expenses) |
-9 |
9 |
2 |
22 |
24 |
– |
Normalized EBIT |
3 728 |
-15 |
199 |
518 |
4 429 |
13.9% |
Normalized EBITDA |
4 691 |
-7 |
270 |
591 |
5 545 |
12.6% |
Normalized EBITDA margin |
45.7% |
46.6% |
78 bps |
|||
South America |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
117 459 |
– |
– |
-1 703 |
115 756 |
-1.4% |
Revenue |
8 220 |
1 |
-1 403 |
2 138 |
8 956 |
26.4% |
Cost of sales |
-4 315 |
– |
531 |
-750 |
-4 535 |
-17.6% |
Gross profit |
3 905 |
1 |
-872 |
1 388 |
4 421 |
36.0% |
SG&A |
-2 463 |
-16 |
383 |
-590 |
-2 686 |
-24.1% |
Other operating income/(expenses) |
376 |
-196 |
-10 |
105 |
276 |
58.9% |
Normalized EBIT |
1 818 |
-211 |
-499 |
904 |
2 011 |
56.7% |
Normalized EBITDA |
2 461 |
-211 |
-614 |
1 143 |
2 779 |
51.7% |
Normalized EBITDA margin |
29.9% |
31.0% |
539 bps |
Advertisement 17
Story continues below
Article content
EMEA |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
66 686 |
153 |
– |
– 591 |
66 249 |
-0.9% |
Revenue |
6 050 |
55 |
-409 |
641 |
6 337 |
10.5% |
Cost of sales |
-3 066 |
-30 |
240 |
-536 |
-3 392 |
-17.3% |
Gross profit |
2 984 |
25 |
-169 |
105 |
2 945 |
3.5% |
SG&A |
-1 968 |
-43 |
102 |
-50 |
-1 959 |
-2.5% |
Other operating income/(expenses) |
138 |
-7 |
-4 |
18 |
145 |
14.0% |
Normalized EBIT |
1 154 |
-24 |
-71 |
73 |
1 131 |
6.5% |
Normalized EBITDA |
1 936 |
-24 |
-126 |
107 |
1 894 |
5.6% |
Normalized EBITDA margin |
32.0% |
29.9% |
-138 bps |
|||
Asia Pacific |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
72 995 |
– |
– |
4 266 |
77 261 |
5.8% |
Revenue |
5 347 |
-10 |
-351 |
571 |
5 557 |
10.7% |
Cost of sales |
-2 544 |
– |
167 |
-258 |
-2 635 |
-10.1% |
Gross profit |
2 803 |
-10 |
-184 |
313 |
2 921 |
11.2% |
SG&A |
-1 548 |
6 |
98 |
-156 |
-1 600 |
-10.1% |
Other operating income/(expenses) |
103 |
– |
-6 |
-9 |
87 |
-9.2% |
Normalized EBIT |
1 358 |
-5 |
-92 |
148 |
1 408 |
10.9% |
Normalized EBITDA |
1 870 |
-5 |
-124 |
157 |
1 897 |
8.4% |
Normalized EBITDA margin |
35.0% |
34.1% |
-73 bps |
|||
Global Export and Holding Companies |
9M22 |
Scope |
Currency Translation |
Organic Growth |
9M23 |
Organic Growth |
Total volumes (thousand hls) |
657 |
-185 |
– |
-214 |
259 |
-45.2% |
Revenue |
601 |
-104 |
– |
-139 |
358 |
-28.0% |
Cost of sales |
-551 |
61 |
2 |
56 |
-431 |
11.4% |
Gross profit |
50 |
-42 |
2 |
-84 |
-73 |
– |
SG&A |
-1 052 |
75 |
-2 |
-32 |
-1 012 |
-3.3% |
Other operating income/(expenses) |
7 |
– |
1 |
-12 |
-4 |
– |
Normalized EBIT |
-995 |
33 |
1 |
-128 |
-1 089 |
-13.3% |
Normalized EBITDA |
-722 |
34 |
3 |
-101 |
-786 |
-14.7% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231030866670/en/
Contacts
Investors
Shaun Fullalove
Tel: +1 212 573 9287
E-mail: shaun.fullalove@ab-inbev.com
Maria Glukhova
Tel: +32 16 276 888
E-mail: maria.glukhova@ab-inbev.com
Cyrus Nentin
Tel: +1 646 746 9673
E-mail: cyrus.nentin@ab-inbev.com
Media
Fallon Buckelew
Tel: +1 310 592 6319
E-mail: fallon.buckelew@ab-inbev.com
Michaël Cloots
Tel: +32 497 167 183
E-mail: michael.cloots@ab-inbev.com
Article content
Comments
Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.