Continued global momentum, partially offset by US
performance, delivered all-time high revenue in FY23
AB InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):
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Figure 14. Terms and debt repayment
schedule as of 31 December 2023 (billion USD) (Graphic: Business
Wire)
Regulated and inside information1
“Our business delivered another year of consistent profitable
growth with a revenue increase of 7.8% and EBITDA growth of 7.0%.
Strong free cash flow generation enabled us to progress on our
deleveraging, propose an increased dividend to our shareholders and
execute on a 1 billion USD share buyback. Our results are a
testament to the strength of the beer category, resilience of our
business and people, consistent execution of our replicable growth
drivers and our unwavering commitment to invest for long-term
growth and value creation.” – Michel Doukeris, CEO, AB InBev
Total Revenue
4Q +6.2% | FY + 7.8%
Revenue increased by 6.2% in 4Q23 with revenue per hl growth of
9.3% and by 7.8% in FY23 with revenue per hl growth of 9.9%.
24.6% increase in combined revenues of our global brands,
Budweiser, Stella Artois, Corona and Michelob Ultra, outside of
their respective home markets in 4Q23, and 18.2% in FY23.
Approximately 70% of our revenue through B2B digital
platforms with the monthly active user base of BEES reaching 3.7
million users.
Over 550 million USD of revenue generated by our digital
direct-to-consumer ecosystem.
Total Volume
4Q - 2.6% | FY - 1.7%
In 4Q23, total volumes declined by 2.6% , with own beer volumes
down by 3.6% and non-beer volumes up by 3.0%. In FY23, total
volumes declined by 1.7% with own beer volumes down by 2.3% and
non-beer volumes up by 2.1%.
Normalized EBITDA
4Q + 6.2% | FY +7.0%
In 4Q23, normalized EBITDA increased by 6.2% to 4 877 million
USD with a normalized EBITDA margin contraction of 2 bps to 33.7%.
In FY23, normalized EBITDA increased by 7.0% to 19 976 million USD
and normalized EBITDA margin contracted by 23 bps to 33.6% .
Normalized EBITDA figures of FY23 and FY22 include an impact of 44
million USD and 201 million USD, respectively, from tax credits in
Brazil.
Underlying Profit (million USD)
4Q 1 661 | FY 6 158
Underlying profit (profit attributable to
equity holders of AB InBev excluding non-underlying items and the
impact of hyperinflation) was 1 661 million USD in 4Q23 compared to
1 739 million USD in 4Q22 and was 6 158 million USD in FY23
compared to 6 093 million USD in FY22.
Underlying EPS (USD)
4Q 0.82 | FY 3.05
Underlying EPS was 0.82 USD in 4Q23, a
decrease from 0.86 USD in 4Q22 and was 3.05 USD in FY23, an
increase from 3.03 USD in FY22.
Net Debt to EBITDA
3.38x
Net debt to normalized EBITDA ratio was
3.38x at 31 December 2023, compared to 3.51x at 31 December
2022.
Capital Allocation
Dividend 0.82 EUR
The AB InBev Board proposes a full year
2023 dividend of 0.82 EUR per share, subject to shareholder
approval at the AGM on 24 April 2024. A timeline showing the
ex-dividend, record and payment dates can be found on page 16.
Out of the one billion USD share buyback
program announced on 31 October 2023, 870 million USD was completed
as of 23 February 2024.
The 2023 Full Year Financial Report is available on our website
at www.ab-inbev.com.
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 17.
Management comments
Creating a future with more cheers
Our business delivered another year of consistent profitable
growth, with an EBITDA increase of 7.0%, in-line with our
medium-term growth ambition and outlook for the year. While our
full growth potential was constrained by the performance of our US
business, we remained true to our purpose and laser focused on the
execution of our strategy.
We made disciplined revenue management and resource allocation
choices, delivering broad-based growth with top- and bottom-line
increases in four of our five operating regions. Our results are a
testament to the strength of the beer category, resilience of our
business and people, consistent execution of our replicable growth
drivers and our unwavering commitment to invest for long-term
growth and value creation.
As with any year, there was success to celebrate and challenges
from which to learn. We are taking the learnings and moving forward
in a stronger position to realize our full growth potential.
Delivering consistent profitable growth
Our top-line increased by 7.8% in FY23, with revenue growth in
more than 85% of our markets, driven by a revenue per hl increase
of 9.9% as a result of pricing actions, ongoing premiumization and
other revenue management initiatives. Volumes declined by 1.7% as
growth in many of our emerging and developing markets was primarily
offset by performance in the US and a soft industry in Europe.
EBITDA increased by 7.0%, with our top-line growth partially
offset by anticipated transactional FX and commodity cost headwinds
and increased sales and marketing investments. Underlying EPS was
3.05 USD, an increase of 0.02 USD per share versus FY22.
Progressing our strategic priorities
- Lead and grow the category We remain focused on the
consistent execution of our five proven and replicable category
expansion levers. In FY23, the beer and beyond beer category
continued to gain share of alcohol by volume globally, led by gains
in South America and China, according to Euromonitor. We focused
our investments behind the megabrands in our portfolio that are
driving the majority of our growth and the global mega platforms
that consumers love and that bring people together. Our portfolio
of brands is unparalleled, with 7 out of the top 10 most valuable
beer brands in the world, according to Kantar BrandZ, and 20 iconic
billion-dollar revenue beer brands. The combination of our iconic
brands with mega platforms such as the Olympics, FIFA World CupTM,
Copa America, NFL, UFC, NBA, Lollapalooza and Tomorrowland has us
uniquely positioned to lead and grow the category. The relevance,
authenticity and effective creativity of our marketing work
continues to be recognized. At the 2023 Cannes Lions International
Festival of Creativity, campaigns and brands from all 5 of our
operating regions were awarded and we were honored to be named as
the Creative Marketer of the Year for the second year in a row.
- Category Participation: In FY23, the percentage of
consumers purchasing our portfolio of brands increased or remained
stable in the majority of our markets, according to our estimates.
Our brand, pack and liquid innovations drove increased
participation with female consumers across key markets in Africa,
Latin America and Europe, and new legal drinking age consumers in
the US and Canada.
- Core Superiority: Our mainstream portfolio delivered
high-single digit revenue growth in FY23 with double-digit growth
in markets such as South Africa, Colombia and Dominican Republic.
Our mainstream brands gained or maintained share of segment in the
majority of our key markets, according to our estimates.
- Occasions Development: Our global no-alcohol beer
portfolio continued to outperform, delivering high-teens revenue
growth in FY23, with our performance driven by Budweiser Zero and
Corona Cero. Our digital direct-to-consumer products enabled us to
develop deep consumer insights and new consumption occasions, such
as Corona Sunset Hours, Brahma Soccer Wednesdays and increased
in-home consumption of returnable glass bottle packs.
- Premiumization: Our above core beer portfolio grew
revenue by low-teens in FY23, with our premium and super premium
brands gaining share of segment in a number of key markets,
including South Africa, Mexico and Brazil, according to our
estimates. Our global megabrands grew revenue by 18.2% outside of
their home markets led by Corona which grew by 22.1%. Budweiser
delivered a revenue increase of 17.1%, with broad-based growth in
more than 25 markets, Stella Artois grew by 18.8% and Michelob
Ultra by 7.5%.
- Beyond Beer: In FY23, our Beyond Beer business
contributed approximately 1.5 billion USD of revenue and grew by
mid-single digits, as growth globally was partially offset by the
performance of malt-based seltzer in the US. Growth was primarily
driven by Brutal Fruit and Flying Fish in Africa, our spirits based
ready-to-drink portfolio in the US and Beats in Brazil, all of
which grew revenue by double-digits.
- Digitize and monetize our ecosystem The digital
transformation of our route to consumer is a fundamental evolution
in how we do business and serve our customers. Our digital
platforms are enabling us to increase the distribution of our
brands, reduce our cost to serve and improve our relationship with
customers and consumers. It is a key competitive advantage, and we
continue to explore new ways to monetize our digital and physical
assets to create additional profitable revenue streams.
- Digitizing our relationships with our more than six million
customers globally: As of 31 December 2023, BEES was live in 26
markets, with approximately 70% of our 4Q23 revenues captured
through B2B digital platforms. In FY23, BEES reached 3.7 million
monthly active users and captured 39.8 billion USD in gross
merchandise value (GMV), growth of 27% versus FY22. BEES
Marketplace was live in 15 markets with 67% of BEES customers also
Marketplace buyers. Marketplace captured approximately 1.5 billion
USD in GMV from sales of third-party products this year, growth of
52% versus FY22.
- Leading the way in DTC solutions: Our omnichannel
direct-to-consumer (DTC) ecosystem of digital and physical products
generated revenue of approximately 1.5 billion USD this year. Our
DTC megabrands, Zé Delivery, TaDa and PerfectDraft are available in
21 markets, fulfilled over 69 million e-commerce orders and
generated revenue of more than 550 million USD in FY23, growth of
15% versus FY22.
- Unlocking value from our ecosystem: We continue to
explore opportunities to generate scalable incremental revenue
streams for our business through EverGrain, our upcycled barley
ingredients company, and Biobrew, our precision fermentation
venture.
- Optimize our business
- Maximizing value creation: Our objective to maximize
long-term value creation is driven by our focus on three areas:
optimized resource allocation, robust risk management and an
efficient capital structure. Our culture of everyday financial
discipline enables us to optimize resource allocation and invest
for growth. In FY23, we invested 11.6 billion USD in capex and
sales and marketing while delivering free cash flow of
approximately 8.8 billion USD, a 0.3 billion USD increase versus
FY22. We continued to deleverage, reducing gross debt by 1.8
billion USD to reach 78.1 billion USD, resulting in a net debt to
EBITDA ratio of 3.38x as of 31 December 2023. Our robust risk
management was recognized earlier this year with a credit rating
upgrade from Baa1 to A3 by Moody’s and from BBB+ to A- by S&P.
As a result, we have additional flexibility in our capital
allocation choices. The AB InBev Board of Directors has proposed a
full year dividend of 0.82 EUR per share, a 9% increase versus
FY22. In addition, as of 23rd February 2024 we have completed
nearly 90% of our 1 billion USD share buyback program announced on
31 October 2023.
- Advancing our sustainability priorities: In FY23, we
continued to make progress towards our ambitious 2025
Sustainability Goals. We contracted the equivalent of 100% of our
global purchased electricity volume from renewable sources with
73.6% operational. Since 2017, we reduced our absolute GHG
emissions across Scopes 1 and 2 by 44% and GHG emissions intensity
across Scopes 1, 2 and 3 by 24.2%. In Sustainable Agriculture, 95%
of our direct farmers met our criteria for skilled, 92% for
connected and 86% for financially empowered. In Water Stewardship,
we are investing in restoration and conservation efforts across
100% of our sites in high stress areas, with 56% of sites in scope
for our 2025 goal already seeing measurable improvement in
watershed health. For Circular Packaging, 77.5% of our products
were in packaging that was returnable or made from majority
recycled content. We are also progressing on our ambition to
achieve net zero by 2040, with 36 lighthouse projects implemented
worldwide in 2023. In recognition of our leadership in corporate
transparency and performance on climate change and water security,
we were awarded a double A score by CDP. We are committed to Smart
Drinking and improving moderation habits all over the world. Since
2016, we have invested 900 million USD in social norms marketing
and are on track to deliver our 1 billion USD goal by 2025. We have
also undertaken the largest voluntary guidance labeling initiative,
with 100% of our labels now featuring Smart Drinking icons and
moderation actionable messages in 26 markets. Please refer to our
Sustainability Statements in our 2023 annual report here for
further details.
Looking forward
As we reflect on 2023, while our full potential was constrained,
the fundamental strengths of our business drove another year of
consistent profitable growth. Beer is a large, profitable and
growing category, gaining share of alcohol globally and with
significant headroom for premiumization. Our diversified footprint,
global scale and unparalleled ecosystem uniquely position us to
lead and grow the category. We have replicable growth drivers such
as our portfolio of megabrands that consumers love, digital
products that unlock value and a category expansion model that
drives organic growth. Our business generates superior
profitability and cash generation, and our dynamic capital
allocation framework provides us flexibility to maximize value
creation. The resilience, relentless commitment and deep ownership
culture of our people is truly unwavering, and we thank all our
colleagues globally for their hard work and dedication.
Looking ahead to 2024, our purpose as a company remains as
relevant as ever. Guided by our strategy and our focus on customer
and consumer centricity, we are energized about the opportunities
ahead to activate the category through our megabrands and
platforms. We believe in the potential of the beer category, the
fundamentals of our company and our people, and our ability to
generate superior long-term value and create a future with more
cheers.
2024 Outlook
(i) Overall Performance: We expect our
EBITDA to grow in line with our medium-term outlook of between
4-8%1. The outlook for FY24 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 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%.
(iii) 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.
(iv) Net Capital Expenditure: We
expect net capital expenditure of between 4.0 and 4.5 billion USD
in FY24.
1Please refer to the FY24 presentation
update on organic growth on page 16
Figure 1. Consolidated performance
(million USD)
4Q22
4Q23
Organic
growth
Total Volumes (thousand hls)
148 775
144 706
-2.6%
AB InBev own beer
128 502
123 764
-3.6%
Non-beer volumes
19 421
19 998
3.0%
Third party products
853
944
13.1%
Revenue
14 668
14 473
6.2%
Gross profit
8 007
7 794
5.3%
Gross margin
54.6%
53.9%
-49 bps
Normalized EBITDA
4 947
4 877
6.2%
Normalized EBITDA margin
33.7%
33.7%
-2 bps
Normalized EBIT
3 608
3 491
6.9%
Normalized EBIT margin
24.6%
24.1%
16 bps
Profit attributable to equity holders of
AB InBev
2 844
1 891
Underlying profit attributable to
equity holders of AB InBev
1 739
1 661
Earnings per share (USD)
1.41
0.94
Underlying earnings per share
(USD)
0.86
0.82
FY22
FY23
Organic
growth
Total Volumes (thousand hls)
595 133
584 728
-1.7%
AB InBev own beer
517 990
505 899
-2.3%
Non-beer volumes
73 241
74 810
2.1%
Third party products
3 903
4 019
4.7%
Revenue
57 786
59 380
7.8%
Gross profit
31 481
31 984
6.7%
Gross margin
54.5%
53.9%
-53 bps
Normalized EBITDA
19 843
19 976
7.0%
Normalized EBITDA margin
34.3%
33.6%
-23 bps
Normalized EBIT
14 768
14 590
6.4%
Normalized EBIT margin
25.6%
24.6%
-31 bps
Profit attributable to equity holders of
AB InBev
5 969
5 341
Underlying profit attributable to
equity holders of AB InBev
6 093
6 158
Earnings per share (USD)
2.97
2.65
Underlying earnings per share
(USD)
3.03
3.05
Figure 2. Volumes (thousand
hls)
4Q22
Scope
Organic
4Q23
Organic growth
growth
Total
Own beer
North America
23 451
- 149
-3 563
19 738
-15.3%
-16.2%
Middle Americas
38 286
-
348
38 635
0.9%
0.9%
South America
46 860
-
- 157
46 704
-0.3%
-2.0%
EMEA
24 094
50
- 180
23 964
-0.7%
-1.0%
Asia Pacific
15 903
-
- 438
15 465
-2.8%
-2.9%
Global Export and Holding Companies
181
-52
71
200
55.0%
54.8%
AB InBev Worldwide
148 775
- 151
-3 919
144 706
-2.6%
-3.6%
FY22
Scope
Organic
FY23
Organic growth
growth
Total
Own beer
North America
102 674
-118
-12 417
90 140
-12.1%
-12.6%
Middle Americas
147 624
-
1 106
148 730
0.7%
0.1%
South America
164 319
-
-1 859
162 460
-1.1%
-2.0%
EMEA
90 780
204
- 771
90 213
-0.8%
-1.1%
Asia Pacific
88 898
-
3 828
92 726
4.3%
4.2%
Global Export and Holding Companies
838
-236
-143
459
-23.7%
-26.4%
AB InBev Worldwide
595 133
- 151
-10 255
584 728
-1.7%
-2.3%
Key Market Performances
United States: Revenue declined by 9.5% impacted by volume
performance
- Operating performance:
- 4Q23: Revenue declined by 17.3% with sales-to-retailers
(STRs) down by 12.1%, primarily due to the volume decline of Bud
Light. Sales-to-wholesalers (STWs) declined by 16.1% as shipments
lagged stronger depletions in December. Revenue per hl decreased by
1.4% due to negative mix and cycling the October price increase in
4Q22. EBITDA declined by 34.2%, with approximately two thirds of
this decrease attributable to market share performance and the
remainder from productivity loss, increased sales and marketing
investments and support measures for our wholesaler partners.
- FY23: Revenue declined by 9.5% with revenue per hl
growth of 3.7%. STWs declined by 12.7% and STRs were down by 11.9%.
EBITDA decreased by 23.4%.
- Commercial highlights: The beer industry remained
resilient in FY23, with volumes improving sequentially throughout
the year and with beer gaining share of total alcohol by value in
the off-premise, according to Circana. Our beer market share has
seen continued gradual improvement since May through the end of
December. While our mainstream beer revenues declined this year,
our above core beer megabrands continued to grow. In Beyond Beer,
our spirits-based ready-to-drink portfolio delivered strong
double-digit volume growth, outperforming the industry. To support
our long-term strategy, we continue to invest in our megabrands,
wholesaler support measures and key mega platforms including the
NFL, MLB, PGA and the NBA as well as new partnerships with the UFC,
Copa America and Team USA for the Olympic and Paralympic
Games.
Mexico: High-single digit top- and bottom-line growth with
margin expansion
- Operating performance:
- 4Q23: Revenue was flat with low-single digit revenue per
hl growth driven by revenue management initiatives in an
environment of moderating inflation. Volumes declined by low-single
digits, underperforming the industry, primarily impacted by adverse
weather in the Acapulco region. EBITDA grew by mid-single digits
with margin expansion of over 150bps.
- FY23: Revenue and revenue per hl grew by high-single
digits with volumes declining slightly, in-line with the industry.
EBITDA grew by high-single digits with margin expansion of
approximately 60bps.
- Commercial highlights: Our performance this year was
driven by consistent execution across all three pillars of our
strategy. Our above core portfolio continued to outperform in FY23,
delivering low-single digit volume growth, while our core brands
remained healthy, increasing revenues by high-single digits. We
continued to progress our digital initiatives with our digital DTC
platform, TaDa, operating in over 60 major cities with more than 90
000 monthly active users. We continue to explore and scale value
added services through the BEES platform, such as Vendo, which
enabled more than 650 000 transactions for digital utilities
payments and mobile data purchases in FY23, and BEES
Marketplace.
Colombia: Record high volumes delivered double-digit top-line
and high-single digit bottom-line growth
- Operating performance:
- 4Q23: Revenue grew by low-teens with mid-single digit
volume and high-single digit revenue per hl growth, driven by
revenue management initiatives. EBITDA grew by mid-single digits as
top-line growth was partially offset by anticipated transactional
FX and commodity cost headwinds.
- FY23: Revenue grew by low-teens with revenue per hl
growth of high-single digits. Volumes grew low-single digits.
EBITDA grew by high-single digits.
- Commercial highlights: Driven by the consistent
execution of our category expansion levers, the beer category
continues to grow, gaining 70bps share of total alcohol this year
and with our volumes reaching a new record high. Our core portfolio
led our performance in FY23, delivering low-teens revenue growth
with a particularly strong performance from Poker which grew
volumes by high-single digits.
Brazil: High-single digit top-line and double-digit
bottom-line growth with margin expansion of 462bps
- Operating performance:
- 4Q23: Revenue grew by 5.8% with revenue per hl growth of
5.0% driven by revenue management initiatives. Total volumes grew
by 0.8%, with beer volumes declining by 1.1% as we cycled FIFA
World CupTM activations in 4Q22. Non-beer volumes increased by
5.3%. EBITDA increased by 26.3% with margin expansion of
537bps.
- FY23: Revenue increased by 8.7% with revenue per hl
growth of 8.5%. Total volumes grew by 0.2% with beer volumes down
by 1.0%, slightly underperforming the industry according to our
estimates, and non-beer volumes up by 3.6%. EBITDA increased by
28.0% with margin expansion of 462bps.
- Commercial highlights: Our performance this year was led
by our premium and super premium brands, which delivered volume
growth in the mid-twenties and gained share of the premium beer
segment, according to our estimates. Our core beer portfolio
remained healthy, increasing revenues by high-single digits.
Non-beer performance was led by our low- and no-sugar portfolio,
which grew volumes by over 25%. BEES Marketplace continued to
expand, reaching over 835 000 customers, a 17% increase versus
4Q22, and grew GMV by over 35% in FY23. Our digital DTC platform,
Zé Delivery, reached 5.7 million monthly active users in 4Q23, a
19% increase versus 4Q22, and increased GMV by 8% in FY23.
Europe: High-single digit top- and low-single digit
bottom-line growth
- Operating performance:
- 4Q23: Revenue grew by mid-single digits with high-single
digit revenue per hl growth, driven by pricing actions and
continued premiumization. Volumes declined by low-single digits,
outperforming a soft industry in the majority of our key markets
according to our estimates. EBITDA declined by approximately 10%,
as top-line growth was offset by anticipated commodity cost
headwinds.
- FY23: Revenue increased by high-single digits, driven by
low-teens revenue per hl growth. Volumes declined by mid-single
digits, driven by a soft industry. EBITDA increased by low-single
digits.
- Commercial highlights: We continued to premiumize our
portfolio this year with our premium and super premium brands
delivering high-single digit revenue growth, led by Corona, Leffe
and Stella Artois. Through the consistent execution of our strategy
and investment in our brands, we gained or maintained market share
in the majority of our key markets in FY23, according to our
estimates. Our digital transformation in Europe is progressing,
with BEES now live in the UK, Germany, Belgium, the Netherlands,
and the Canary Islands.
South Africa: Record high volumes delivered double digit top-
and high-single digit bottom-line growth
- Operating performance:
- 4Q23: Revenue grew by high-teens, with revenue per hl
growth of mid-teens, driven by pricing actions and continued
premiumization. Our volumes increased by low-single digits,
outperforming the industry according to our estimates. EBITDA grew
by mid-twenties.
- FY23: Revenue grew by mid-teens with low-teens revenue
per hl growth and a mid-single digit increase in volume. EBITDA
grew by high-single digits, as top-line growth was partially offset
by anticipated transactional FX and commodity cost headwinds.
- Commercial highlights: Driven by focused commercial
investment and the consistent execution of our strategy, the
momentum of our business continued in FY23. Our portfolio delivered
all-time high volumes, with increased Brand Power of our beer and
beyond beer portfolios driving market share gains of both beer and
total alcohol according to our estimates. Our core beer portfolio
continued to outperform, and our global brands grew volumes by more
than 30%, driven by Corona and Stella Artois. In Beyond Beer, our
portfolio grew volumes by high-single digits led by Flying Fish and
Brutal Fruit.
China: Double digit top- and bottom-line growth with margin
expansion of 125bps
- Operating performance:
- 4Q23: Revenue grew by 11.2% with revenue per hl
increasing by 14.7%, driven by continued premiumization and
supported by a favorable comparable in 4Q22. Total volumes declined
by 3.1%, driven by a softer mainstream industry, however our
premium and super-premium volumes grew by double-digits. EBITDA
increased by 31.6%.
- FY23: Revenue grew by 12.3% with a revenue per hl
increase of 7.6% and volume growth of 4.3%, outperforming the
industry according to our estimates. EBITDA grew by 16.3% with
margin expansion of 125bps.
- Commercial highlights: We continue to invest behind our
commercial strategy, focused on premiumization, channel and
geographic expansion, and digital transformation. In FY23, our
premium and super premium portfolio continued to outperform,
delivering double-digit revenue growth and driving overall market
share expansion, according to our estimates. The roll out and
adoption of the BEES platform continued, with BEES now present in
approximately 260 cities and with 70% of our revenue generated
through digital channels in December.
Highlights from our other markets
- Canada: Revenue declined by mid-single digits this
quarter with revenue per hl growth of mid-single digits. In FY23,
revenue was flat with revenue per hl growth of high-single digits,
driven by revenue management initiatives and the continued
outperformance of our above core beer portfolio. Volumes declined
by high-single digits in 4Q23 and by mid-single digits in FY23,
underperforming a soft industry.
- Peru: Revenue and revenue per hl increased by mid-single
digits this quarter with volumes declining by low-single digits. In
FY23, our portfolio gained share of total alcohol with revenue
growth of high-single digits and revenue per hl increasing by
approximately 10%, driven primarily by revenue management
initiatives. Volumes declined by low-single digits, outperforming a
soft industry.
- Ecuador: Revenue declined by low-single digits this
quarter driven by a volume decline of mid-single digits as the
industry was impacted by four fewer trading days due to election
related dry laws. In FY23, our portfolio gained share of total
alcohol with revenue increasing by mid-single digits led by our
above core beer brands, which delivered a high-single digit revenue
increase. Beer volumes were flattish.
- Argentina: Volumes declined by mid-single digits in 4Q23
and high-single digits in FY23, as overall consumer demand was
impacted by inflationary pressures. Revenue increased by over 100%
on an organic basis in both the quarter and full year, driven by
revenue management initiatives in a highly inflationary
environment. Reported USD revenues declined in FY23, driven
primarily by the hyperinflation accounting treatment of the
currency devaluation in December 2023. Refer to the note on page 14
for further details.
- Africa excluding South Africa: In Nigeria, revenue grew
by over 30% this quarter driven by pricing actions and other
revenue management initiatives. Beer volumes declined by
high-single digits, driven by a soft industry which was impacted by
the continued challenging operating environment. In FY23, revenue
increased by high-teens with a beer volume decline of low-teens. In
our other markets, we grew revenue in aggregate by high-single
digits in 4Q23 and by low-teens in FY23, driven by Tanzania,
Botswana and Zambia.
- South Korea: Total revenue increased by low-single
digits in 4Q23 with mid-single digit volume decline and high-single
digit revenue per hl growth, driven by revenue management
initiatives. In FY23, revenue decreased by low-single digits with
flattish revenue per hl and a low-single digit volume decline,
underperforming the industry.
Consolidated Income
Statement
Figure 3. Consolidated income statement
(million USD)
4Q22
4Q23
Organic
growth
Revenue
14 668
14 473
6.2%
Cost of sales
-6 661
-6 679
-7.4%
Gross profit
8 007
7 794
5.3%
SG&A
-4 592
-4 537
-4.3%
Other operating income/(expenses)
193
234
11.4%
Normalized profit from operations
(normalized EBIT)
3 608
3 491
6.9%
Non-underlying items above EBIT (incl.
impairment losses)
19
-165
Net finance income/(cost)
-1 221
-1 290
Non-underlying net finance
income/(cost)
798
550
Share of results of associates
89
95
Non-underlying share of results of
associates
-
-35
Income tax expense
5
-376
Profit
3 298
2 270
Profit attributable to non-controlling
interest
454
379
Profit attributable to equity holders of
AB InBev
2 844
1 891
Normalized EBITDA
4 947
4 877
6.2%
Underlying profit attributable to
equity holders of AB InBev
1 739
1 661
FY22
FY23
Organic
growth
Revenue
57 786
59 380
7.8%
Cost of sales
-26 305
-27 396
-9.0%
Gross profit
31 481
31 984
6.7%
SG&A
-17 555
-18 172
-7.4%
Other operating income/(expenses)
841
778
19.8%
Normalized profit from operations
(normalized EBIT)
14 768
14 590
6.4%
Non-underlying items above EBIT (incl.
impairment losses)
-251
-624
Net finance income/(cost)
-4 978
-5 033
Non-underlying net finance
income/(cost)
829
-69
Share of results of associates
299
295
Non-underlying share of results of
associates
-1 143
- 35
Income tax expense
-1 928
-2 234
Profit
7 597
6 891
Profit attributable to non-controlling
interest
1 628
1 550
Profit attributable to equity holders of
AB InBev
5 969
5 341
Normalized EBITDA
19 843
19 976
7.0%
Underlying profit attributable to
equity holders of AB InBev
6 093
6 158
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 4Q23 organic revenue increase for AB InBev would be
0.5% versus the 6.2% reported. For FY23, revenue growth for AB
InBev would be 3.8% versus the 7.8% reported.
Consolidated other operating income/(expenses) in FY23 increased
by 19.8% primarily driven by higher government grants. In FY23,
Ambev recognized 44 million USD income in other operating income
related to tax credits (FY22: 201 million USD). 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)
4Q22
4Q23
FY22
FY23
COVID-19 costs
-2
-
-18
-
Restructuring
-47
-64
-110
-142
Business and asset disposal (incl.
impairment losses)
72
-23
-71
-385
Claims and legal costs
-
-66
-
-85
AB InBev Efes related costs
-3
-12
-51
-12
Acquisition costs / Business
combinations
-1
-
-1
-
Non-underlying items in EBIT
19
-165
-251
-624
Non-underlying share of results of
associates
-
- 35
-1 143
- 35
EBIT excludes negative non-underlying items of 165 million USD
in 4Q23 and 624 million USD in FY23. Business and asset disposal
(including impairment losses) for FY23 includes a loss of
approximately 300 million USD recognized upon disposal of a
portfolio of eight beer and beverage brands and associated assets
in the US to Tilray Brands, Inc in 3Q23.
Non-underlying share of results of associates of FY22 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)
4Q22
4Q23
FY22
FY23
Net interest expense
-785
-712
-3 294
-3 131
Net interest on net defined benefit
liabilities
-18
-26
-73
-90
Accretion expense
-231
-228
-782
-808
Net interest income on Brazilian tax
credits
22
61
168
168
Other financial results
-208
-385
-997
-1 172
Net finance income/(cost)
-1 221
-1 290
-4 978
-5 033
Other financial results were negatively impacted by 125 million
USD in 4Q23 versus 4Q22 and by 269 million USD in FY23 versus FY22,
due to a decrease in hyperinflation monetary adjustments resulting
from the devaluation of the Argentinean Peso in December 2023.
Non-underlying net finance income/(cost)
Figure 6. Non-underlying net finance
income/(cost) (million USD)
4Q22
4Q23
FY22
FY23
Mark-to-market
454
294
606
-325
Gain/(loss) on bond redemption and
other
344
256
223
256
Non-underlying net finance
income/(cost)
798
550
829
-69
Non-underlying net finance cost in FY23 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
4Q22
4Q23
FY22
FY23
Share price at the start of the period
(Euro)
46.75
52.51
53.17
56.27
Share price at the end of the period
(Euro)
56.27
58.42
56.27
58.42
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)
4Q22
4Q23
FY22
FY23
Income tax expense
-5
376
1 928
2 234
Effective tax rate
-0.2%
14.5%
18.6%
25.2%
Normalized effective tax rate
12.2%
16.7%
23.8%
24.3%
The increase in normalized ETR in 4Q23 compared to 4Q22 and the
increase in FY23 compared to FY22 is driven mainly by country
mix.
Figure 9. Underlying Profit
attributable to equity holders of AB InBev (million USD)
4Q22
4Q23
FY22
FY23
Profit attributable to equity holders
of AB InBev
2 844
1 891
5 969
5 341
Net impact of non-underlying items on
profit
-1 127
-360
153
614
Hyperinflation impacts in underlying
profit
22
130
- 30
203
Underlying profit attributable to
equity holders of AB InBev
1 739
1 661
6 093
6 158
Underlying profit attributable to equity holders in 4Q22 and
FY22 were positively impacted by 13 million USD and 186 million USD
respectively, and in 4Q23 and FY23 by 55 million USD and 122
million USD respectively, after tax and non-controlling interest
related to tax credits in Brazil.
Basic and underlying EPS
Figure 10. Earnings per share
(USD)
4Q22
4Q23
FY22
FY23
Basic EPS
1.41
0.94
2.97
2.65
Net impact of non-underlying items on
profit
-0.57
-0.18
0.07
0.31
Hyperinflation impacts in EPS
0.01
0.06
-0.02
0.10
Underlying EPS
0.86
0.82
3.03
3.05
Weighted average number of ordinary and
restricted shares (million)
2 013
2 016
2 013
2 016
Figure 11. Key components - Underlying
EPS in USD
4Q22
4Q23
FY22
FY23
Normalized EBIT before
hyperinflation
1.83
1.86
7.41
7.42
Hyperinflation impacts in normalized
EBIT
-0.04
-0.13
-0.07
-0.18
Normalized EBIT
1.79
1.73
7.34
7.24
Net finance cost
-0.61
-0.64
-2.47
-2.50
Income tax expense
-0.14
-0.18
-1.16
-1.15
Associates & non-controlling
interest
-0.19
-0.15
-0.67
-0.64
Hyperinflation impacts in EPS
0.01
0.06
-0.02
0.10
Underlying EPS
0.86
0.82
3.03
3.05
Weighted average number of ordinary and
restricted shares (million)
2 013
2 016
2 013
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)
4Q22
4Q23
FY22
FY23
Profit attributable to equity holders
of AB InBev
2 844
1 891
5 969
5 341
Non-controlling interests
454
379
1 628
1 550
Profit
3 298
2 270
7 597
6 891
Income tax expense
-5
376
1 928
2 234
Share of result of associates
-89
-95
-299
-295
Non-underlying share of results of
associates
-
35
1 143
35
Net finance (income)/cost
1 221
1 290
4 978
5 033
Non-underlying net finance
(income)/cost
-798
-550
-829
69
Non-underlying items above EBIT (incl.
impairment losses)
-19
165
251
624
Normalized EBIT
3 608
3 491
14 768
14 590
Depreciation, amortization and
impairment
1 338
1 386
5 074
5 385
Normalized EBITDA
4 947
4 877
19 843
19 976
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.
Argentinean Peso devaluation
In December 2023, the Argentinean Peso underwent a significant
devaluation with the USDARS exchange rate closing at 809 on 31
December 2023 compared to 350 on 30 September 2023. IFRS (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 (i.e. FY23 and FY22 results at the closing rate on 31
December 2023 and 2022, respectively). The December 2023
devaluation negatively impacted our revenue and Normalized EBITDA
as reported in 4Q23 and FY23. The impact of hyperinflation
accounting in 4Q22 and 4Q23, as well as FY22 and FY23 were as
follows:
Impact of hyperinflation (million
USD)
Revenue
4Q22
4Q23
FY22
FY23
Indexing (1)
161
156
483
561
Currency(2)
-268
-855
-578
-1 279
Total impact
-107
-699
-95
-717
Normalized EBITDA
4Q22
4Q23
FY22
FY23
Indexing (1)
41
83
150
211
Currency(2)
-107
-356
-209
-525
Total impact
-66
-274
-59
-314
USDARS average rate
128
294
USDARS closing rate
177
809
(1)
Indexation calculated at closing
rate
(2)
Currency impact from
hyperinflation calculated as the difference between converting the
Argentinean peso (ARS) reported amounts at the closing exchange
rate compared to the average exchange rate of each period
Financial position
Figure 13. Cash Flow Statement (million
USD)
FY22
FY23
Operating activities
Profit of the period
7 597
6 891
Interest, taxes and non-cash items
included in profit
12 344
14 181
Cash flow from operating activities
before changes in working capital and use of provisions
19 941
21 072
Change in working capital
- 346
-1 541
Pension contributions and use of
provisions
- 351
- 419
Interest and taxes (paid)/received
-6 104
-5 975
Dividends received
158
127
Cash flow from/(used in) operating
activities
13 298
13 265
Investing activities
Net capex
-4 838
-4 482
Sale/(acquisition) of subsidiaries, net of
cash disposed/ acquired of
- 70
9
Net proceeds from sale/(acquisition) of
other assets
288
119
Cash flow from/(used in) investing
activities
-4 620
-4 354
Financing activities
Net (repayments of) / proceeds from
borrowings
-7 174
-2 896
Dividends paid
-2 442
-3 013
Share buyback
-
- 362
Payment of lease liabilities
- 610
- 780
Derivative financial instruments
61
- 841
Other financing cash flows
- 455
- 704
Cash flow from/(used in) financing
activities
-10 620
-8 596
.
Net increase/(decrease) in cash and
cash equivalents
-1 942
315
FY23 recorded an increase in cash and cash equivalents of 315
million USD compared to a decrease of 1 942 million USD in FY22,
with the following movements:
- Our cash flow from operating activities reached 13 265
million USD in FY23 compared to 13 298 million USD in FY22. The
decrease was driven by changes in working capital for FY23 compared
to FY22 as a result of (i) higher trade and other receivables due
partially to increased sales in December 2023 versus December 2022
and extended credit terms to our wholesalers in the US, and (ii) a
decrease in trade and other payables due to lower inventory
purchases and net capex, and US volume performance.
- Our cash outflow from investing activities was 4 354
million USD in FY23 compared to a cash outflow of 4 620 million USD
in FY22. The decrease in the cash outflow from investing activities
was mainly due to lower net capital expenditures in FY23 compared
to FY22. Out of the total FY23 capital expenditures, approximately
40% was used to improve the company’s production facilities while
44% was used for logistics and commercial investments and 16% was
used for improving administrative capabilities and for the purchase
of hardware and software.
- Our cash outflow from financing activities amounted to 8
596 million USD in FY23, as compared to a cash outflow of 10 620
million USD in FY22. The decrease is primarily driven by lower debt
redemption in FY23 compared to FY22.
Our net debt decreased to 67.6 billion USD as of 31 December
2023 from 69.7 billion USD as of 31 December 2022.
Our net debt to normalized EBITDA ratio was 3.38x as of 31
December 2023. Our optimal capital structure is a net debt to
normalized EBITDA ratio of around 2x.
We continue to proactively manage our debt portfolio. After
redemptions in December 2023 of 3 billion USD, 98% of our bond
portfolio holds a fixed-interest rate, 41% is denominated in
currencies other than USD and maturities are well-distributed
across the next several years.
In addition to a very comfortable debt maturity profile and
strong cash flow generation, as of 31 December 2023, we had total
liquidity of 20.5 billion USD, which consisted of 10.1 billion USD
available under committed long-term credit facilities and 10.4
billion USD of cash, cash equivalents and short-term investments in
debt securities less bank overdrafts.
2024 presentation update
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. Corresponding adjustments will be made to all income
statement related items in the organic growth calculations.
Proposed full year 2023 dividend
The AB InBev Board proposes a full year 2023 dividend of 0.82
EUR per share, subject to shareholder approval at the AGM on 24
April 2024. In line with the Company’s financial discipline and
deleveraging objectives, the recommended dividend balances the
Company’s capital allocation priorities and dividend policy while
returning cash to shareholders. A timeline showing the ex-dividend,
record and payment dates can be found below:
Dividend Timeline
Ex-dividend date
Record Date
Payment date
Euronext
3 May 2024
6 May 2024
7 May 2024
MEXBOL
3 May 2024
6 May 2024
7 May 2024
JSE
2 May 2024
6 May 2024
7 May 2024
NYSE (ADR program)
3 May 2024
6 May 2024
7 June 2024
Restricted Shares
3 May 2024
6 May 2024
7 May 2024
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 FY23, we reported a negative
impact on the profit attributable to equity holders of AB InBev of
203 million USD. The impact in FY23 Basic EPS was -0.10 USD. Values
in the figures and annexes may not add up, due to rounding. 4Q23
and FY23 EPS is based upon a weighted average of 2 016 million
shares compared to a weighted average of 2 013 million shares for
4Q22 and FY22.
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,
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 fourth quarter 2023 (4Q23) and the full year 2023
(FY23) financial data set out in Figure 1 (except for the volume
information), Figures 3 to 5, 6, 8, 9, 12 and 13 of this press
release have been extracted from the group’s audited consolidated
financial statements as of and for the twelve months ended 31
December 2023, which have been audited 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, 11 and 14 have been extracted from the underlying accounting
records as of and for the twelve months ended 31 December 2023
(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, 29 February
2024: 3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details: Webcast (listen-only mode): AB
InBev 4Q23 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 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
(4Q)
AB InBev Worldwide
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
148 775
-151
-
-
-3 919
144 706
-2.6%
of which AB InBev own beer
128 502
-127
-
-
-4 610
123 764
-3.6%
Revenue
14 668
-67
-2 239
1 199
912
14 473
6.2%
Cost of sales
-6 661
22
914
-464
- 491
-6 679
-7.4%
Gross profit
8 007
-44
-1 325
736
421
7 794
5.3%
SG&A
-4 592
13
594
-358
-195
-4 537
-4.3%
Other operating income/(expenses)
193
48
-24
-4
22
234
11.4%
Normalized EBIT
3 608
17
-755
373
248
3 491
6.9%
Normalized EBITDA
4 947
22
-914
518
304
4 877
6.2%
Normalized EBITDA margin
33.7%
33.7%
-2 bps
North America
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
23 451
-149
-
-
-3 563
19 738
-15.3%
Revenue
3 931
-37
2
-
- 613
3 283
-15.7%
Cost of sales
-1 566
21
-
-
103
-1 442
6.6%
Gross profit
2 366
-16
1
-
- 510
1 841
-21.7%
SG&A
-1 166
12
-
-
56
-1 098
4.9%
Other operating income/(expenses)
11
-
-
-
7
18
-
Normalized EBIT
1 211
-4
1
-
-448
761
-37.1%
Normalized EBITDA
1 397
-5
1
-
-436
957
-31.3%
Normalized EBITDA margin
35.5%
29.2%
-660 bps
Middle Americas
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
38 286
-
-
-
348
38 635
0.9%
Revenue
3 913
-17
335
-
206
4 437
5.3%
Cost of sales
-1 521
-7
-128
-
- 76
-1 731
-5.0%
Gross profit
2 392
-23
208
-
130
2 706
5.5%
SG&A
-879
12
-78
-
10
- 934
1.2%
Other operating income/(expenses)
-3
6
-
-
25
27
-
Normalized EBIT
1 510
-5
130
-
165
1 799
11.0%
Normalized EBITDA
1 872
-
160
-
138
2 170
7.4%
Normalized EBITDA margin
47.9%
48.9%
95 bps
South America
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
46 860
-
-
-
- 157
46 704
-0.3%
Revenue
3 380
3
-2 498
1 199
1 001
3 084
29.6%
Cost of sales
-1 661
-1
987
-464
- 312
-1 450
-18.8%
Gross profit
1 718
2
-1 511
736
689
1 635
40.1%
SG&A
-995
-12
673
-358
-197
- 890
-19.6%
Other operating income/(expenses)
97
43
-24
-4
7
119
6.7%
Normalized EBIT
820
34
-862
373
499
863
61.5%
Normalized EBITDA
1 050
34
-1 041
518
545
1 106
52.4%
Normalized EBITDA margin
31.1%
35.8%
541 bps
EMEA
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
24 094
50
-
-
-180
23 964
-0.7%
Revenue
2 070
20
-82
-
244
2 252
11.7%
Cost of sales
-1 101
-10
57
-
-199
-1 253
-17.9%
Gross profit
969
9
-25
-
46
999
4.7%
SG&A
-636
-14
3
-
-8
- 655
-1.2%
Other operating income/(expenses)
60
-1
1
-
-7
53
-11.1%
Normalized EBIT
393
-6
-21
-
31
397
8.0%
Normalized EBITDA
676
-5
-32
-
37
675
5.5%
Normalized EBITDA margin
32.6%
30.0%
-176 bps
Asia Pacific
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
15 903
-
-
-
-438
15 465
-2.8%
Revenue
1 185
-2
1
-
83
1 267
7.0%
Cost of sales
-624
-
2
-
-16
- 637
-2.5%
Gross profit
561
-2
3
67
630
12.1%
SG&A
-520
1
7
-
-22
- 533
-4.2%
Other operating income/(expenses)
34
-
-1
-
-8
26
-22.7%
Normalized EBIT
76
-1
10
-
38
122
51.3%
Normalized EBITDA
234
-1
6
-
49
288
21.0%
Normalized EBITDA margin
19.8%
22.8%
258 bps
Global Export and Holding
Companies
4Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
4Q23
Organic
Growth
Total volumes (thousand hls)
181
-52
-
-
71
200
55.0%
Revenue
189
-33
3
-
-9
150
-6.0%
Cost of sales
-189
19
-5
-
9
-166
5.0%
Gross profit
-
-15
-1
-
-1
-17
-4.7%
SG&A
-395
13
-11
-
-34
-427
-8.9%
Other operating income/(expenses)
-6
-
-1
-
-2
-8
-
Normalized EBIT
-401
-1
-13
-
-37
-453
-9.2%
Normalized EBITDA
-282
-1
-8
-
-29
-320
-10.2%
Annex 2: Segment reporting
(FY)
AB InBev Worldwide
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
595 133
-151
-
-10 255
584 728
-1.7%
of which AB InBev own beer
517 990
- 81
-
-12 010
505 899
-2.3%
Revenue
57 786
-123
-2 744
4 460
59 380
7.8%
Cost of sales
-26 305
45
1 226
-2 362
-27 396
-9.0%
Gross profit
31 481
-78
-1 518
2 099
31 984
6.7%
SG&A
-17 555
-14
696
-1 299
-18 172
-7.4%
Other operating income/(expenses)
841
-146
-43
126
778
19.8%
Normalized EBIT
14 768
-238
-865
925
14 590
6.4%
Normalized EBITDA
19 843
-223
-1 012
1 368
19 976
7.0%
Normalized EBITDA margin
34.3%
33.6%
-23 bps
North America
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
102 674
-118
-
-12 417
90 140
-12.1%
Revenue
16 566
-36
-80
-1 378
15 072
-8.3%
Cost of sales
-6 714
19
28
151
-6 517
2.2%
Gross profit
9 851
-17
-52
-1 227
8 554
-12.5%
SG&A
-4 587
-18
30
-43
-4 619
-0.9%
Other operating income/(expenses)
45
-
3
-14
34
-30.3%
Normalized EBIT
5 309
-35
-19
-1 285
3 970
-24.4%
Normalized EBITDA
6 057
-37
-24
-1 269
4 727
-21.1%
Normalized EBITDA margin
36.6%
31.4%
-507 bps
Middle Americas
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
147 624
-
-
1 106
148 730
0.7%
Revenue
14 180
-16
875
1309
16 348
9.2%
Cost of sales
-5 540
-13
-320
-507
-6 379
-9.1%
Gross profit
8 639
-29
556
803
9 969
9.3%
SG&A
-3 390
-6
-228
-167
-3 792
-4.9%
Other operating income/(expenses)
-12
14
2
47
51
-
Normalized EBIT
5 238
-21
329
683
6 228
13.1%
Normalized EBITDA
6 564
-7
430
729
7 715
11.1%
Normalized EBITDA margin
46.3%
47.2%
80 bps
South America
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
164 319
-
-
-1 859
162 460
-1.1%
Revenue
11 599
4
-2 702
3 139
12 040
27.3%
Cost of sales
-5 976
-1
1 054
-1 062
-5 984
-18.0%
Gross profit
5 623
3
-1 647
2 077
6 056
37.2%
SG&A
-3 458
-28
697
-787
-3 575
-22.8%
Other operating income/(expenses)
473
-153
-38
112
394
40.6%
Normalized EBIT
2 638
-177
-988
1 402
2 875
58.3%
Normalized EBITDA
3 511
-177
-1 137
1 688
3 884
51.9%
Normalized EBITDA margin
30.3%
32.3%
542 bps
EMEA
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
90 780
204
-
- 771
90 213
-0.8%
Revenue
8 120
75
-491
885
8 589
10.8%
Cost of sales
-4 167
-40
297
-734
-4 645
-17.5%
Gross profit
3 953
35
-194
150
3 944
3.8%
SG&A
-2 604
-57
105
-58
-2 614
-2.2%
Other operating income/(expenses)
198
-8
-3
12
198
6.2%
Normalized EBIT
1 546
-30
-92
104
1528
6.9%
Normalized EBITDA
2 612
-29
-158
145
2 570
5.6%
Normalized EBITDA margin
32.2%
29.9%
-148 bps
Asia Pacific
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
88 898
-
-
3 828
92 726
4.3%
Revenue
6 532
-12
-350
655
6 824
10.0%
Cost of sales
-3 168
-1
170
-274
-3 272
-8.6%
Gross profit
3 364
-13
-180
380
3 551
11.4%
SG&A
-2 067
7
105
-178
-2 133
-8.6%
Other operating income/(expenses)
137
-
-7
-17
113
-12.6%
Normalized EBIT
1 433
-6
-82
186
1 531
13.0%
Normalized EBITDA
2 104
-6
-118
206
2 186
9.8%
Normalized EBITDA margin
32.2%
32.0%
-7 bps
Global Export and Holding
Companies
FY22
Scope
Currency
Translation
Organic
Growth
FY23
Organic
Growth
Total volumes (thousand hls)
838
-236
-
-143
459
-23.7%
Revenue
790
-137
4
-149
508
-22.8%
Cost of sales
-740
80
-3
64
-598
9.8%
Gross profit
50
-57
1
-84
-90
-
SG&A
-1 447
88
-13
-66
-1 439
-4.9%
Other operating income/(expenses)
1
-
-
-14
-13
-
Normalized EBIT
-1 396
32
-12
-165
-1 542
-12.1%
Normalized EBITDA
-1 004
33
-5
-130
-1 106
-13.4%
Annex 3: Consolidated statement of
financial position
Million US dollar
31 December 2023
31 December 2022
ASSETS
Non-current assets
Property, plant and equipment
26 818
26 671
Goodwill
117 043
113 010
Intangible assets
41 286
40 209
Investments in associates
4 872
4 656
Investment securities
178
175
Deferred tax assets
2 935
2 300
Pensions and similar obligations
12
11
Income tax receivables
844
883
Derivatives
44
60
Trade and other receivables
1 941
1 782
Total non-current assets
195 973
189 757
Current assets
Investment securities
67
97
Inventories
5 583
6 612
Income tax receivables
822
813
Derivatives
505
331
Trade and other receivables
6 024
5 330
Cash and cash equivalents
10 332
9 973
Assets classified as held for sale
34
30
Total current assets
23 367
23 186
Total assets
219 340
212 943
EQUITY AND LIABILITIES
Equity
Issued capital
1 736
1 736
Share premium
17 620
17 620
Reserves
20 276
15 218
Retained earnings
42 215
38 823
Equity attributable to equity holders
of AB InBev
81 848
73 398
Non-controlling interests
10 828
10 880
Total equity
92 676
84 278
Non-current liabilities
Interest-bearing loans and borrowings
74 163
78 880
Pensions and similar obligations
1 673
1 534
Deferred tax liabilities
11 874
11 818
Income tax payables
589
610
Derivatives
151
184
Trade and other payables
738
859
Provisions
320
396
Total non-current liabilities
89 508
94 282
Current liabilities
Bank overdrafts
17
83
Interest-bearing loans and borrowings
3 987
1 029
Income tax payables
1 583
1 438
Derivatives
5 318
5 308
Trade and other payables
25 981
26 349
Provisions
269
176
Total current liabilities
37 156
34 383
Total equity and liabilities
219 340
212 943
Annex 4: Consolidated statement of cash
flows
For the year ended 31 December
Million US dollar
2023
2022
.
OPERATING ACTIVITIES
Profit of the period
6 891
7 597
Depreciation, amortization and
impairment
5 411
5 078
Net finance cost/(income)
5 102
4 148
Equity-settled share-based payment
expense
570
448
Income tax expense
2 234
1 928
Other non-cash items
1 125
-102
Share of result of associates
-260
844
Cash flow from operating activities
before changes in working capital and use of provisions
21 072
19 941
Decrease/(increase) in trade and other
receivables
-1 147
-48
Decrease/(increase) in inventories
717
-1 547
Increase/(decrease) in trade and other
payables
-1 110
1 249
Pension contributions and use of
provisions
-419
-351
Cash generated from operations
19 113
19 244
Interest paid
-3 877
-4 133
Interest received
598
611
Dividends received
127
158
Income tax paid
-2 696
-2 582
Cash flow from/(used in) operating
activities
13 265
13 298
.
INVESTING ACTIVITIES
Acquisition of property, plant and
equipment and of intangible assets
-4 638
-5 160
Proceeds from sale of property, plant and
equipment and of intangible assets
156
322
Sale/(acquisition) of subsidiaries, net of
cash disposed/ acquired of
9
-70
Proceeds from sale/(acquisition) of other
assets
119
288
Cash flow from/(used in) investing
activities
-4 354
-4 620
.
FINANCING ACTIVITIES
Proceeds from borrowings
202
91
Repayments of borrowings
-3 098
-7 265
Dividends paid
-3 013
-2 442
Share buyback
-362
-
Payment of lease liabilities
-780
-610
Derivative financial instruments
-841
61
Sale/(acquisition) of non-controlling
interests
-22
-20
Other financing cash flows
-682
-435
Cash flow from/(used in) financing
activities
-8 596
-10 620
.
Net increase/(decrease) in cash and
cash equivalents
315
-1 942
Cash and cash equivalents less bank
overdrafts at beginning of year
9 890
12 043
Effect of exchange rate fluctuations
109
-211
Cash and cash equivalents less bank
overdrafts at end of period
10 314
9 890
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228688664/en/
Investors Shaun Fullalove Tel: +1 212 573 9287
E-mail: shaun.fullalove@ab-inbev.com
Ekaterina Baillie Tel: +32 16 276 888 E-mail:
ekaterina.baillie@ab-inbev.com
Cyrus Nentin Tel: +1 646 746 9673 E-mail:
cyrus.nentin@ab-inbev.com
Media Media Relations E-mail:
media.relations@ab-inbev.com
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