Continued global momentum, partially offset by US
performance, delivered high-single digit revenue growth
AB InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):
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Figure 14. Terms and debt repayment
schedule as of 30 June 2023 (billion USD) (Graphic: Business
Wire)
Regulated information1
“Our business delivered another quarter of profitable growth.
Revenue increased by 7.2% with an EBITDA increase of 5.0%. We
continue to invest in our strategic priorities for the long-term.”
– Michel Doukeris, CEO, AB InBev
Total Revenue
+7.2%
Revenue increased by 7.2% in 2Q23 with
revenue per hl growth of 9.0% and by 10.0% in HY23 with revenue per
hl growth of 10.6%.
18.4% increase in combined revenues
of our global brands, Budweiser, Stella Artois and Corona, outside
of their respective home markets in 2Q23, and 16.9% in HY23.
Approximately 64% of our revenue
through B2B digital platforms with the monthly active user base of
BEES reaching 3.3 million users.
Over 115 million USD of revenue
generated by our digital direct-to-consumer ecosystem.
Total Volume
-1.4%
In 2Q23, total volumes declined by 1.4%,
with own beer volumes down by 1.8% and non-beer volumes up by 0.5%.
In HY23, total volumes declined by 0.3% with own beer volumes down
by 0.8% and non-beer volumes up by 2.1%.
Normalized EBITDA
+5.0%
In 2Q23, normalized EBITDA increased by
5.0% to 4 909 million USD with a normalized EBITDA margin
contraction of 69 bps to 32.5%. In HY23, normalized EBITDA
increased by 9.1% to 9 668 million USD and normalized EBITDA margin
contracted by 29 bps to 33.0%. Normalized EBITDA figures of HY22
include an impact of 201 million USD from tax credits in
Brazil.
Underlying Profit
1 452 million USD
Underlying profit (profit attributable to
equity holders of AB InBev excluding non-underlying items and the
impact of hyperinflation) was 1 452 million USD in 2Q23 compared to
1 468 million USD in 2Q22 and was 2 762 million USD in HY23
compared to 2 672 million USD in HY22.
Underlying EPS
0.72 USD
Underlying EPS was 0.72 USD in 2Q23, a
decrease from 0.73 USD in 2Q22 and was 1.37 USD in HY23, an
increase from 1.33 USD in HY22.
Net Debt to EBITDA
3.70x
Net debt to normalized EBITDA ratio was
3.70x at 30 June 2023 compared to 3.86x at 30 June 2022 and 3.51x
at 31 December 2022.
The 2023 Half Year Financial Report is
available on our website at www.ab-inbev.com.
1The enclosed information constitutes
regulated information as defined in the Belgian Royal Decree of 14
November 2007 regarding the duties of issuers of financial
instruments which have been admitted for trading on a regulated
market. For important disclaimers and notes on the basis of
preparation, please refer to page 15.
Management comments
Continued global momentum, partially offset by US
performance, delivered high-single digit revenue growth
We delivered a top-line increase of 7.2%, with revenue growth in
more than 85% 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 1.4%, as
growth in the majority of our markets was offset by performance in
the US. EBITDA increased by 5.0% with margin compression of 69bps,
driven by anticipated commodity cost headwinds and increased sales
and marketing investments. Underlying EPS was 0.72 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 volume growth in the majority of our
markets and revenue growth in more than 85%.
Digitize and monetize our ecosystem:
BEES captured approximately 9.2 billion USD of gross merchandise
value (GMV), a 30% increase versus 2Q22 with 64% of our revenue
through B2B digital channels. BEES Marketplace is live in 15
markets and generated an annualized GMV of approximately 1.3
billion USD with 63% of BEES customers now also Marketplace
buyers.
Optimize our business:
In HY23, disciplined overhead management and efficient resource
allocation enabled us to invest approximately 2.1 billion USD in
capex and 3.5 billion USD in sales and marketing to drive the
organic growth of our business. We continue to focus on
deleveraging with net debt to EBITDA reaching 3.70x versus 3.86x as
of 30 June 2022.
Lead and grow the category
In HY23, we invested approximately 3.5 billion USD in sales and
marketing, a 12.8% increase versus HY22, driving an increase of our
portfolio brand power in approximately 60% of our key markets. We
are executing on our five proven and scalable levers to drive
category expansion:
- Inclusive Category: In 2Q23, the percentage of consumers
purchasing our portfolio of brands increased across key markets in
Latin America and Africa, according to our estimates. This increase
in participation was led by female and lower income consumer
groups, driven by continued brand and pack innovation.
- Core Superiority: In 2Q23, our mainstream portfolio
delivered a mid-single digit revenue increase as double-digit
growth in South Africa and Colombia was partially offset by the
revenue decline of Bud Light in the US. Our mainstream brands
gained or maintained share of segment in two thirds of our key
markets, according to our estimates.
- Occasions Development: Our global no-alcohol beer
portfolio delivered approximately 30% revenue growth this quarter,
with our performance driven by Budweiser Zero in Brazil and growth
of Corona Cero in Canada and Europe. Leveraging our digital
direct-to-consumer products we are investing in and developing new
consumption occasions. For example, in Brazil, Zé Delivery enabled
the launch of Corona Sunset Hours, an everyday activation
encouraging consumers to disconnect from work and reconnect with
friends in the early evening.
- Premiumization: Our above core beer portfolio grew
revenue by more than 10% in 2Q23, led by our global brands and
double-digit growth of Modelo in Mexico and Spaten in Brazil. Our
global brands grew revenue by 18.4% outside of their home markets,
led by Corona, which was recently recognized by Kantar BrandZ as
the #1 fastest growing global beer brand by value, which grew by
23.7%. Budweiser delivered a revenue increase of 16.9%, with
broad-based growth in 25 markets, and Stella Artois grew by
14.5%.
- Beyond Beer: Our global Beyond Beer business contributed
over 385 million USD of revenue in the quarter and grew by
mid-single digits as growth globally was partially offset by a soft
malt-based seltzer industry in the US. Global growth was primarily
driven by the expansion of Brutal Fruit in Africa and the Vicky
portfolio in Mexico.
Digitize and monetize our ecosystem
- Digitizing our relationships with more than 6 million
customers globally: As of 30 June 2023, BEES is live in 23
markets with approximately 64% of our 2Q23 revenues captured
through B2B digital platforms. In 2Q23, BEES had 3.3 million
monthly active users and captured approximately 9.2 billion USD in
gross merchandise value (GMV), growth of 15% and 30% versus 2Q22
respectively. BEES Marketplace is live in 15 markets with 63% of
BEES customers also marketplace buyers. Marketplace captured
approximately 340 million USD in GMV from sales of third-party
products this quarter, growth of 41% versus 2Q22.
- Leading the way in DTC solutions: Our omnichannel
direct-to-consumer (DTC) ecosystem of digital and physical products
generated revenue of more than 385 million USD in 2Q23. Our digital
DTC products, Zé Delivery, TaDa and PerfectDraft are available in
20 markets, generated 16.5 million ecommerce orders and delivered
over 115 million USD in revenue this quarter, representing 18%
growth versus 2Q22.
Optimize our business
In HY23, disciplined overhead management and efficient
allocation of resources across our operations enabled us to invest
approximately 2.1 billion USD in capex and 3.5 billion USD in sales
and marketing to drive the organic growth of our business, while
managing the continued elevated cost environment. Our net debt to
EBITDA ratio reached 3.70x versus 3.86x as of 30 June 2022, an
increase versus 3.51x as of 31 December 2022 due to the seasonality
of our cashflow generation. Underlying EPS was 0.72 USD, a decrease
of 0.01 USD per share versus 2Q22, cycling a 0.04 USD per share net
benefit from tax credits in Brazil year-over-year.
Advancing our sustainability priorities
We continued to innovate and make progress towards our 2025
Sustainability Goals through key local initiatives with the
potential to scale globally. For Climate Action, we invested in a
biomass processor in our Jupille brewery in Belgium to produce
thermal energy from malt husks, which is expected to reduce our gas
consumption by more than 15% and lower our carbon emissions. In
Sustainable Agriculture, to strengthen local supply chains we
provided technical and financial training to over 900 smallholder
barley farmers in Uganda. In Water Stewardship, we installed new
vacuum pump technology in breweries across several markets to
reduce water usage in bottle fillers by approximately 50%. For
Circular Packaging, our business in Brazil launched a nationwide
returnable bottle campaign to help increase the use of returnable
packaging by promoting affordability and sustainability.
Creating a future with more cheers
In HY23, we delivered 10.0% revenue growth and 9.1% EBITDA
growth while continuing to invest for the long-term in our brands,
facilities and digital transformation. We remain focused on brewing
high quality beer, providing best-in-class service to our
customers, generating value for our stakeholders and delivering 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)
2Q22
2Q23
Organic
growth
Total Volumes (thousand hls)
149 729
147 583
-1.4%
AB InBev own beer
131 107
128 750
-1.8%
Non-beer volumes
17 544
17 636
0.5%
Third party products
1 079
1 197
12.9%
Revenue
14 793
15 120
7.2%
Gross profit
7 997
8 101
5.5%
Gross margin
54.1%
53.6%
-86 bps
Normalized EBITDA
5 096
4 909
5.0%
Normalized EBITDA margin
34.5%
32.5%
-69 bps
Normalized EBIT
3 811
3 569
2.2%
Normalized EBIT margin
25.8%
23.6%
-114 bps
Profit attributable to equity holders of
AB InBev
1 597
339
Underlying profit attributable to
equity holders of AB InBev
1 468
1 452
Earnings per share (USD)
0.79
0.17
Underlying earnings per share
(USD)
0.73
0.72
HY22
HY23
Organic
growth
Total Volumes (thousand hls)
289 074
288 131
-0.3%
AB InBev own beer
251 692
249 810
-0.8%
Non-beer volumes
35 488
36 223
2.1%
Third party products
1 894
2 098
12.5%
Revenue
28 027
29 333
10.0%
Gross profit
15 243
15 796
8.8%
Gross margin
54.4%
53.9%
-60 bps
Normalized EBITDA
9 583
9 668
9.1%
Normalized EBITDA margin
34.2%
33.0%
-29 bps
Normalized EBIT
7 105
7 072
8.3%
Normalized EBIT margin
25.4%
24.1%
-39 bps
Profit attributable to equity holders of
AB InBev
1 692
1 977
Underlying profit attributable to
equity holders of AB InBev
2 672
2 762
Earnings per share (USD)
0.84
0.98
Underlying earnings per share
(USD)
1.33
1.37
Figure 2. Volumes (thousand
hls)
2Q22
Scope
Organic
2Q23
Organic growth
growth
Total
Volume
Own beer
volume
North America
27 361
35
-3 854
23 542
-14.1%
-14.5%
Middle Americas
37 775
-
118
37 893
0.3%
-1.0%
South America
36 421
7
- 691
35 737
-1.9%
-1.5%
EMEA
22 838
60
-14
22 884
-0.1%
-0.3%
Asia Pacific
25 097
-
2 378
27 475
9.5%
9.3%
Global Export and Holding Companies
238
-102
-84
51
-62.3%
-
AB InBev Worldwide
149 729
-
-2 147
147 583
-1.4%
-1.8%
HY22
Scope
Organic
HY23
Organic growth
growth
Total
Volume
Own beer
volume
North America
51 448
51
-4 104
47 395
-8.0%
-8.2%
Middle Americas
72 024
-
141
72 164
0.2%
-0.8%
South America
76 815
-
- 791
76 023
-1.0%
-1.7%
EMEA
42 962
104
- 224
42 842
-0.5%
-0.9%
Asia Pacific
45 385
-
4 204
49 589
9.3%
9.1%
Global Export and Holding Companies
440
-155
-168
117
-58.9%
-
AB InBev Worldwide
289 074
-
- 943
288 131
-0.3%
-0.8%
Key Market Performances
United States: Revenue declined by 10.5% impacted by volume
performance
- Operating performance:
- 2Q23: Revenue declined by 10.5% with revenue per hl
growing by 5.2% driven by revenue management initiatives.
Sales-to-wholesalers (STWs) were down by 15.0%. Sales-to-retailers
(STRs) declined by 14.0%, underperforming the industry, primarily
due to the volume decline of Bud Light. EBITDA declined by 28.2%,
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.
- HY23: Revenue declined by 3.6% with revenue per hl
growth of 5.4%. Our STWs declined by 8.6% and STRs were down by
9.2%. EBITDA declined by 14.8%.
- Commercial highlights: The beer industry continued to
demonstrate resilience in 2Q23, delivering revenue growth of 2.3%
while volumes declined by 2.5%, according to Circana. Our total
beer industry share declined this quarter but has been stable since
the last week of April through the end of June. Since April, we
actively engaged with over 170 000 consumers across the country
through a third-party research firm and the data shows that most
consumers surveyed are favorable towards the Bud Light brand and
approximately 80% are favorable or neutral. As part of our
long-term plan, we increased investments in our key brands,
invested in measures to support our wholesalers and continued key
initiatives such as partnerships with NFL, NBA, Folds of Honor and
Farm Rescue.
Mexico: Double-digit top- and bottom-line growth with
continued market share gain
- Operating performance:
- 2Q23: Revenue grew by low-teens with revenue per hl
growth of low-teens driven by pricing actions and other revenue
management initiatives. Volumes declined by low-single digits,
outperforming the industry which was impacted by an earlier Easter.
EBITDA grew by mid-teens with margin expansion of over 175bps.
- HY23: Revenue grew by low-teens with revenue per hl
growing by low-teens and volumes flat. EBITDA grew by
mid-teens.
- Commercial highlights: Our performance this quarter was
driven by ongoing portfolio development and digital transformation.
Our above core portfolio continued to outperform, growing revenue
by mid-teens, led by the strong performance of Modelo, Michelob
Ultra and Pacifico. We continued to progress our digital and
physical DTC initiatives this quarter with our digital DTC
platform, TaDa, now operating in over 60 major cities and
fulfilling on average over 300 000 orders per month and the opening
of a further 150 Modelorama stores.
Colombia: High-single digit top- and double-digit bottom-line
growth
- Operating performance:
- 2Q23: Revenue grew by high-single digits with
high-single digit revenue per hl growth, driven by pricing actions
and other revenue management initiatives. Volumes grew by
low-single digits, continuing to gain share of total alcohol in an
improving consumer environment. EBITDA grew by low-twenties, driven
by top-line growth and supported by cycling a loss from the
disposal of non-core assets in 2Q22. HY23: Revenue grew by
high-single digits with revenue per hl growth of high-single
digits. Volumes declined by low-single digits. EBITDA grew by
high-single digits.
- Commercial highlights: Our leading mainstream portfolio
drove our performance this quarter, with a particularly strong
performance from Poker which grew volumes by mid-teens.
Brazil: High-single digit top-line and double-digit
bottom-line growth with margin expansion
- Operating performance:
- 2Q23: Revenue grew by 9.4% with revenue per hl growth of
12.2% driven by revenue management initiatives and continued
premiumization. Beer volumes declined by 2.6%, underperforming the
industry according to our estimates, as we cycled a strong
performance in 2Q22 which was supported by post-COVID recovery.
Non-beer volumes declined by 2.2% resulting in a total volume
decrease of 2.5%. EBITDA increased by 29.0% with margin expansion
of approximately 400bps.
- HY23: Total volumes were flat with beer volumes down
0.9% and non-beer volumes up 2.5%. Both revenue and revenue per hl
increased by 12.4%. EBITDA grew by 27.7%.
- Commercial highlights: Our premium and super premium
brands continued to outperform this quarter, delivering volume
growth in the mid-thirties, led by Original, Spaten and Corona.
BEES Marketplace continued to expand, reaching over 700 thousand
customers, a 29% increase versus 2Q22, and growing GMV by 64%. Our
digital DTC platform, Zé Delivery, reached 4.6 million monthly
active users this quarter, a 12% increase versus 2Q22, and
increased GMV by 12%.
Europe: High single digit top- and bottom-line growth
- Operating performance:
- 2Q23: Revenue grew by high-single digits with mid-teens
revenue per hl growth, driven by pricing actions and the continued
momentum of our premium and super premium brands. Volumes declined
by mid-single digits, outperforming a soft industry in the majority
of our key markets according to our estimates. EBITDA grew by
high-single digits.
- HY23: Revenue grew by double-digits, driven by mid-teens
revenue per hl growth. Volumes declined by low-single digits.
EBITDA increased by high-single digits.
- Commercial highlights: We continue to drive
premiumization across Europe. Our premium and super premium brands
delivered double-digit revenue growth this quarter, led by Corona
and Budweiser.
South Africa: Double digit top-line growth with continued
market share gain
- Operating performance:
- 2Q23: Revenue grew by high-teens, with revenue per hl
growth of more than 10%, driven by pricing actions and other
revenue management initiatives. Our volumes grew by high-single
digits, ahead of the industry according to our estimates, driven by
strong consumer demand for our brands and supported by a favorable
comparable due to production constraints in 2Q22. EBITDA was
flattish as top-line growth was offset primarily by anticipated
commodity cost headwinds.
- HY23: Revenue grew by low-teens with high-single digit
revenue per hl growth and a mid-single digit increase in volume.
EBITDA declined by low-single digits.
- Commercial highlights: We continue to see strong
consumer demand for our portfolio, gaining share of beer and total
alcohol according to our estimates. Carling Black Label, the #1
beer brand in the country, led our performance this quarter with
high-teens volume growth and our global brands grew volumes by more
than 50%, driven by Corona.
China: Double-digit top- and bottom-line growth
- Operating performance:
- 2Q23: Volumes grew by 11.0%, outperforming the industry
according to our estimates. Revenue per hl increased by 7.6%,
driven by on-premise recovery and continued premiumization,
resulting in revenue growth of 19.4%. EBITDA grew by 21.8%.
- HY23: Volumes grew by 9.4% and revenue per hl by 5.4%,
leading to a total revenue increase of 15.3%. EBITDA grew by
17.4%.
- Commercial highlights: We delivered volume growth across
all segments of our portfolio this quarter, led by mid-twenties
volume growth in both our premium and super premium portfolios. The
roll out and adoption of the BEES platform continued, with BEES now
present in over 220 cities and over 45% of our revenue through
digital channels in June.
Highlights from our other markets
- Canada: Revenue increased by low-single digits this
quarter with revenue per hl growth of high-single digits, driven by
revenue management initiatives and premiumization. Volumes declined
by mid-single digits, underperforming a soft industry.
- Peru: Revenue grew by high-single digits this quarter
with revenue per hl growing by low-teens, driven primarily by
revenue management initiatives. Volumes declined by low-single
digits, outperforming a soft industry and gaining share of total
alcohol.
- Ecuador: Revenue grew by high-single digits in 2Q23 with
volumes increasing by low-single digits, supported by continued
share of total alcohol gains. Our above core brands continued to
lead our growth, delivering a double-digit revenue increase.
- Argentina: Revenue increased by high-single digits on a
reported USD basis and by over 100% on an organic basis in 2Q23,
driven by revenue management initiatives in a highly inflationary
environment. Beer volumes grew by low-single digits with total
volumes declining by low-single digits.
- Africa excluding South Africa: In Nigeria, our top-line
grew by mid-teens this quarter with total volumes declining by
high-single digits, driven by a soft industry which was impacted by
the continued challenging operating environment. In our other
markets, we grew volumes in aggregate by high-single digits in
2Q23, driven primarily by Tanzania, Ghana and Uganda.
- South Korea: Total revenue declined by high-single
digits, driven by a low-single digit volume decline as we cycled
post-COVID recovery in 2Q22. Revenue per hl decreased by mid-single
digits, driven primarily by an excise tax increase.
Consolidated Income Statement
Figure 3. Consolidated income statement
(million USD)
2Q22
2Q23
Organic
growth
Revenue
14 793
15 120
7.2%
Cost of sales
-6 796
-7 019
-9.2%
Gross profit
7 997
8 101
5.5%
SG&A
-4 500
-4 707
-9.4%
Other operating income/(expenses)
314
175
47.8%
Normalized profit from operations
(normalized EBIT)
3 811
3 569
2.2%
Non-underlying items above EBIT (incl.
impairment losses)
-9
-60
Net finance income/(cost)
-1 252
-1 283
Non-underlying net finance
income/(cost)
72
-1 078
Share of results of associates
74
55
Income tax expense
-721
-595
Profit
1 975
607
Profit attributable to non-controlling
interest
378
269
Profit attributable to equity holders of
AB InBev
1 597
339
Normalized EBITDA
5 096
4 909
5.0%
Underlying profit attributable to
equity holders of AB InBev
1 468
1 452
HY22
HY23
Organic
growth
Revenue
28 027
29 333
10.0%
Cost of sales
-12 784
-13 536
-11.5%
Gross profit
15 243
15 796
8.8%
SG&A
-8 616
-9 051
-9.8%
Other operating income/(expenses)
478
327
26.2%
Normalized profit from operations
(normalized EBIT)
7 105
7 072
8.3%
Non-underlying items above EBIT (incl.
impairment losses)
-105
-107
Net finance income/(cost)
-2 444
-2 520
Non-underlying net finance
income/(cost)
176
-703
Share of results of associates
129
105
Non-underlying share of results of
associates
-1 143
-
Income tax expense
-1 244
-1 192
Profit
2 474
2 655
Profit attributable to non-controlling
interest
782
678
Profit attributable to equity holders of
AB InBev
1 692
1 977
Normalized EBITDA
9 583
9 668
9.1%
Underlying profit attributable to
equity holders of AB InBev
2 672
2 762
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 over the past 12 months, resulting in
a more significant impact on the organic revenue growth of AB InBev
than historically. For illustrative purposes, fully excluding the
Argentinean operation, 2Q23 organic revenue increased for AB InBev
would be 4.6% versus the 7.2% reported. For HY23 revenue growth for
AB InBev would be 6.7% versus the 10.0% reported.
Consolidated other operating income/(expenses) in 2Q23 increased
by 26.2% primarily driven by higher government grants and the
impact of disposal of non-core assets year-over-year. In HY22,
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)
2Q22
2Q23
HY22
HY23
COVID-19 costs
-4
-
-13
-
Restructuring
-14
-22
-51
-50
Business and asset disposal (incl.
impairment losses)
10
-19
6
-38
Legal costs
-
-19
-
-19
AB InBev Efes related costs
-1
-
-47
-
Non-underlying items in EBIT
-9
-60
-105
-107
Non-underlying share of results of
associates
-
-
-1 143
-
EBIT excludes negative non-underlying items of 60 million USD in
2Q23 and 107 million USD in HY23.
Non-underlying share of results of associates of HY22 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)
2Q22
2Q23
HY22
HY23
Net interest expense
-838
-824
-1 683
-1 630
Net interest on net defined benefit
liabilities
-19
-21
-37
-42
Accretion expense
-185
-202
-336
-385
Net interest income on Brazilian tax
credits
65
47
113
78
Other financial results
-275
-283
-501
-540
Net finance income/(cost)
-1 252
-1 283
-2 444
-2 520
Non-underlying net finance income/(cost)
Figure 6. Non-underlying net finance
income/(cost) (million USD)
2Q22
2Q23
HY22
HY23
Mark-to-market
65
-1 078
296
-703
Gain/(loss) on bond redemption and
other
7
-
-120
-
Non-underlying net finance
income/(cost)
72
-1 078
176
-703
Non-underlying net finance cost in HY23 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
2Q22
2Q23
HY22
HY23
Share price at the start of the period
(Euro)
54.26
61.33
53.17
56.27
Share price at the end of the period
(Euro)
51.36
51.83
51.36
51.83
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)
2Q22
2Q23
HY22
HY23
Income tax expense
721
595
1 244
1 192
Effective tax rate
27.5%
51.9%
26.3%
31.9%
Normalized effective tax rate
30.3%
27.8%
28.2%
27.3%
The decrease in normalized ETR in 2Q23 compared to 2Q22 and the
decrease in HY23 compared to HY22 is driven by country mix.
Figure 9. Underlying Profit
attributable to equity holders of AB InBev (million USD)
2Q22
2Q23
HY22
HY23
Profit attributable to equity holders
of AB InBev
1 597
339
1 692
1 977
Net impact of non-underlying items on
profit
- 114
1 091
1 006
750
Hyperinflation impacts in underlying
profit
- 15
22
- 26
35
Underlying profit attributable to
equity holders of AB InBev
1 468
1 452
2 672
2 762
Underlying profit attributable to equity holders in 2Q22 and
HY22 were positively impacted by 115 million USD and 152 million
USD respectively, and in 2Q23 and HY23 by 29 million USD and 48
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)
2Q22
2Q23
HY22
HY23
Basic EPS
0.79
0.17
0.84
0.98
Net impact of non-underlying items on
profit
-0.07
0.54
0.50
0.37
Hyperinflation impacts in EPS
-0.01
0.01
-0.01
0.02
Underlying EPS
0.73
0.72
1.33
1.37
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
2Q22
2Q23
HY22
HY23
Normalized EBIT before
hyperinflation
1.90
1.78
3.55
3.54
Hyperinflation impacts in normalized
EBIT
-0.01
-0.01
-0.02
-0.03
Normalized EBIT
1.90
1.77
3.53
3.51
Net finance cost
-0.62
-0.64
-1.21
-1.25
Income tax expense
-0.39
-0.31
-0.65
-0.62
Associates & non-controlling
interest
-0.15
-0.11
-0.32
-0.29
Hyperinflation impacts in EPS
-0.01
0.01
-0.01
0.02
Underlying EPS
0.73
0.72
1.33
1.37
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)
2Q22
2Q23
HY22
HY23
Profit attributable to equity holders
of AB InBev
1 597
339
1 692
1 977
Non-controlling interests
378
269
782
678
Profit
1 975
607
2 474
2 655
Income tax expense
721
595
1 244
1 192
Share of result of associates
-74
-55
-129
-105
Non-underlying share of results of
associates
-
-
1 143
-
Net finance (income)/cost
1 252
1 283
2 444
2 520
Non-underlying net finance
(income)/cost
-72
1 078
-176
703
Non-underlying items above EBIT (incl.
impairment losses)
9
60
105
107
Normalized EBIT
3 811
3 569
7 105
7 072
Depreciation, amortization and
impairment
1 286
1 340
2 477
2 596
Normalized EBITDA
5 096
4 909
9 583
9 668
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.
Financial position
Figure 13. Cash Flow Statement (million
USD)
HY22
HY23
Operating activities
Profit of the period
2 474
2 655
Interest, taxes and non-cash items
included in profit
7 015
7 512
Cash flow from operating activities
before changes in working capital and use of provisions
9 489
10 167
Change in working capital
-3 339
-4 615
Pension contributions and use of
provisions
-195
-192
Interest and taxes (paid)/received
-3 823
-3 806
Dividends received
50
43
Cash flow from operating
activities
2 182
1 597
Investing activities
Net capex
-1 939
-2 063
Sale/(acquisition) of subsidiaries, net of
cash disposed/ acquired of
-44
-8
Net proceeds from sale/(acquisition) of
other assets
66
10
Cash flow from / (used in) investing
activities
-1 917
-2 061
Financing activities
Dividends paid
-1 276
-1 923
Net (payments on)/proceeds from
borrowings
-3 452
155
Payment of lease liabilities
-286
-359
Sale/(purchase) of non-controlling
interests and other
-378
-696
Cash flow from / (used in) financing
activities
-5 392
-2 823
.
Net increase/(decrease) in cash and
cash equivalents
-5 128
-3 287
HY23 recorded a decrease in cash and cash equivalents of 3 287
million USD compared to a decrease of 5 128 million USD in HY22,
with the following movements:
- Our cash flow from operating activities reached 1 597
million USD in HY23 compared to 2 182 million USD in HY22. The
decrease was driven by changes in working capital for HY23 compared
to HY22. Changes in working capital in the first half of 2023 and
2022 reflect higher working capital levels at the end of June than
at year-end as a result of seasonality.
- Our cash outflow from investing activities was 2 061
million USD in HY23 compared to a cash outflow of 1 917 million USD
in HY22. The increase in the cash outflow from investing activities
was mainly due to higher net capital expenditures in HY23 compared
to HY22. Out of the total HY23 capital expenditures, approximately
33% was used to improve the company’s production facilities while
49% was used for logistics and commercial investments and 18% was
used for improving administrative capabilities and for the purchase
of hardware and software.
- Our cash outflow from financing activities amounted to 2
823 million USD in HY23, as compared to a cash outflow of 5 392
million USD in HY22. The decrease is primarily driven by lower debt
redemption in HY23 compared to HY22.
Our net debt increased to 73.8 billion USD as of 30 June 2023
from 69.7 billion USD as of 31 December 2022.
Our net debt to normalized EBITDA ratio was 3.70x as of 30 June
2023. Our optimal capital structure is a net debt to normalized
EBITDA ratio of around 2x.
We continue to proactively manage our debt portfolio. 96% of our
bond portfolio holds a fixed-interest rate, 42% is denominated in
currencies other than USD and maturities are well-distributed
across the next several years.
As of 30 June 2023, we had total liquidity of 16.9 billion USD,
which consisted of 10.1 billion USD available under committed
long-term credit facilities and 6.8 billion USD of cash, cash
equivalents and short-term investments in debt securities less bank
overdrafts.
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
and Corona, 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 HY23, we reported a negative
impact on the profit attributable to equity holders of AB InBev of
35 million USD. The impact in HY23 underlying EPS was -0.02 USD.
Values in the figures and annexes may not add up, due to rounding.
2Q23 and HY23 EPS is based upon a weighted average of 2 016 million
shares compared to a weighted average of 2 012 million shares for
2Q22 and HY22.
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 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 second quarter 2023 (2Q23) and half year 2023
(HY23) 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 unaudited condensed
consolidated interim financial statements as of and for the six
months ended 30 June 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, 11 and 14 have been extracted from the
underlying accounting records as of and for the six months ended 30
June 2023 (except for the volume information). References in this
document to materials on our websites, such as www.bees.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, 3 August
2023: 3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details: Webcast (listen-only mode): AB
InBev 2Q23 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® and
Stella Artois®; multi-country brands Beck’s®, Hoegaarden®, Leffe®
and Michelob ULTRA®; 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
(2Q)
AB InBev Worldwide
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
149 729
-
-
-
-2 147
147 583
-1.4%
of which AB InBev own beer
131 107
19
-
-
-2 376
128 750
-1.8%
Revenue
14 793
-20
-870
153
1 065
15 120
7.2%
Cost of sales
-6 796
12
430
-41
- 625
-7 019
-9.2%
Gross profit
7 997
-8
-440
111
440
8 101
5.5%
SG&A
-4 500
-11
264
-38
-421
-4 707
-9.4%
Other operating income/(expenses)
314
-186
-15
1
61
175
47.8%
Normalized EBIT
3 811
-205
-191
75
80
3 569
2.2%
Normalized EBITDA
5 096
-205
-263
38
243
4 909
5.0%
Normalized EBITDA margin
34.5%
32.5%
-69 bps
North America
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
27 361
35
-
-
-3 854
23 542
-14.1%
Revenue
4 390
-
-42
-
-395
3 953
-9.0%
Cost of sales
-1 785
-1
15
-
27
-1 745
1.5%
Gross profit
2 604
-1
-28
-
-367
2 208
-14.1%
SG&A
-1 209
-2
14
-
-18
-1 215
-1.5%
Other operating income/(expenses)
7
-
-
-
3
10
36.0%
Normalized EBIT
1 402
-3
-14
-
-383
1 003
-27.4%
Normalized EBITDA
1 597
-3
-16
-
-389
1 189
-24.4%
Normalized EBITDA margin
36.4%
30.1%
-616 bps
Middle Americas
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
37 775
-
-
-
118
37 893
0.3%
Revenue
3 594
-
122
-
368
4 084
10.2%
Cost of sales
-1 435
1
-39
-
-98
-1 571
-6.8%
Gross profit
2 159
1
83
-
270
2 513
12.5%
SG&A
-874
-8
-35
-
-68
-985
-7.7%
Other operating income/(expenses)
-14
-
-
-
23
10
-
Normalized EBIT
1 271
-6
48
-
225
1 538
17.8%
Normalized EBITDA
1 610
-6
65
-
247
1 916
15.4%
Normalized EBITDA margin
44.8%
46.9%
210 bps
South America
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
36 421
7
-
-
- 691
35 737
-1.9%
Revenue
2 626
-
-651
153
615
2 742
23.8%
Cost of sales
-1 419
-
295
-41
-258
-1 423
-18.4%
Gross profit
1 207
-
-356
111
357
1 319
30.2%
SG&A
-855
-6
205
-38
-232
-926
-27.3%
Other operating income/(expenses)
243
-184
-14
1
35
81
59.3%
Normalized EBIT
595
-190
-165
75
160
475
41.0%
Normalized EBITDA
820
-190
-221
38
290
737
47.2%
Normalized EBITDA margin
31.2%
26.9%
440 bps
EMEA
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
22 838
60
-
-
-14
22 884
-0.1%
Revenue
2 140
22
-173
-
259
2 248
12.0%
Cost of sales
-1 087
-12
100
-
-208
-1 207
-18.9%
Gross profit
1 054
10
-74
-
51
1 041
4.8%
SG&A
-680
-17
44
-
-9
-662
-1.2%
Other operating income/(expenses)
49
-3
-1
-
1
47
2.5%
Normalized EBIT
423
-9
-31
-
43
426
10.4%
Normalized EBITDA
692
-9
-52
-
49
680
7.2%
Normalized EBITDA margin
32.3%
30.3%
-134 bps
Asia Pacific
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
25 097
-
-
-
2 378
27 475
9.5%
Revenue
1 835
-2
-125
-
266
1 973
14.5%
Cost of sales
-881
-
58
-
-105
-927
-11.9%
Gross profit
954
-2
-67
161
1 046
17.0%
SG&A
-531
1
37
-
-90
-584
-17.1%
Other operating income/(expenses)
26
-
-1
-
-5
21
-17.3%
Normalized EBIT
449
-1
-31
-
66
483
14.8%
Normalized EBITDA
620
-1
-41
-
66
645
10.7%
Normalized EBITDA margin
33.8%
32.7%
-113 bps
Global Export and Holding
Companies
2Q22
Scope
Currency
Translation
Hyperinflation
restatement
Organic
Growth
2Q23
Organic
Growth
Total volumes (thousand hls)
238
-102
-
-
-84
51
-62.3%
Revenue
208
-41
-
-
-48
119
-28.8%
Cost of sales
-189
24
2
-
17
-147
10.3%
Gross profit
19
-17
2
-
-31
-27
-
SG&A
-350
21
-2
-
-4
-336
-1.3%
Other operating income/(expenses)
2
-
1
-
3
7
-
Normalized EBIT
-330
4
1
-
-32
-357
-9.8%
Normalized EBITDA
-242
4
2
-
-21
-257
-8.6%
Annex 2: Segment reporting
(HY)
AB InBev Worldwide
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
289 074
-
-
- 943
288 131
-0.3%
of which AB InBev own beer
251 692
29
-
-1 911
249 810
-0.8%
Revenue
28 027
-39
-1 459
2 804
29 333
10.0%
Cost of sales
-12 784
21
690
-1 463
-13 536
-11.5%
Gross profit
15 243
-18
-769
1 340
15 796
8.8%
SG&A
-8 616
-16
426
-845
-9 051
-9.8%
Other operating income/(expenses)
478
-204
-19
72
327
26.2%
Normalized EBIT
7 105
-239
-362
567
7 072
8.3%
Normalized EBITDA
9 583
-239
-524
848
9 668
9.1%
Normalized EBITDA margin
34.2%
33.0%
-29 bps
North America
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
51 448
51
-
-4 104
47 395
-8.0%
Revenue
8 192
2
-67
-201
7 926
-2.5%
Cost of sales
-3 349
-2
23
-92
-3 420
-2.7%
Gross profit
4 844
-
-44
-293
4 506
-6.0%
SG&A
-2 279
-28
25
-71
-2 354
-3.1%
Other operating income/(expenses)
28
-
-
-10
18
-35.6%
Normalized EBIT
2 592
-29
-19
-374
2 171
-14.6%
Normalized EBITDA
2 975
-29
-23
-385
2 539
-13.1%
Normalized EBITDA margin
36.3%
32.0%
-391 bps
Middle Americas
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
72 024
-
-
141
72 164
0.2%
Revenue
6 693
-
173
707
7 573
10.6%
Cost of sales
-2 625
1
-58
-245
-2 926
-9.3%
Gross profit
4 068
2
114
463
4 646
11.4%
SG&A
-1 631
-12
-53
-167
-1 863
-10.1%
Other operating income/(expenses)
-12
-
-
19
8
-
Normalized EBIT
2 425
-10
62
315
2 792
13.0%
Normalized EBITDA
3 060
-10
89
355
3 494
11.6%
Normalized EBITDA margin
45.7%
46.1%
44 bps
South America
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
76 815
-
-
- 791
76 023
-1.0%
Revenue
5 333
-
-964
1 480
5 849
28.0%
Cost of sales
-2 792
-
405
-562
-2 949
-20.2%
Gross profit
2 541
-
-558
918
2 900
36.5%
SG&A
-1 609
-13
280
-462
-1 804
-28.7%
Other operating income/(expenses)
312
-201
-13
73
171
66.0%
Normalized EBIT
1 244
-213
-292
529
1 268
52.2%
Normalized EBITDA
1 666
-213
-409
723
1 766
50.3%
Normalized EBITDA margin
31.2%
30.2%
469 bps
EMEA
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
42 962
104
-
- 224
42 842
-0.5%
Revenue
3 940
38
-336
429
4 070
10.8%
Cost of sales
-2 000
-20
191
-381
-2 210
-18.9%
Gross profit
1 939
18
-145
48
1 860
2.5%
SG&A
-1 341
-31
94
-29
-1 307
-2.1%
Other operating income/(expenses)
88
-4
-3
2
83
1.9%
Normalized EBIT
685
-16
-55
21
635
3.1%
Normalized EBITDA
1 192
-15
-97
63
1 142
5.3%
Normalized EBITDA margin
30.3%
28.1%
-146 bps
Asia Pacific
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
45 385
-
-
4 204
49 589
9.3%
Revenue
3 471
-6
-262
476
3 679
13.7%
Cost of sales
-1 655
-
125
-219
-1 750
-13.2%
Gross profit
1 816
-7
-137
257
1 929
14.2%
SG&A
- 999
4
73
-110
-1 033
-11.1%
Other operating income/(expenses)
67
-
-4
-10
53
-15.5%
Normalized EBIT
884
-3
-68
136
949
15.5%
Normalized EBITDA
1 232
-3
-91
136
1 273
11.0%
Normalized EBITDA margin
35.5%
34.6%
-84 bps
Global Export and Holding
Companies
HY22
Scope
Currency
Translation
Organic
Growth
HY23
Organic
Growth
Total volumes (thousand hls)
440
-155
-
-168
117
-58.9%
Revenue
399
-73
-3
-87
236
-26.6%
Cost of sales
-362
42
4
35
-281
10.9%
Gross profit
36
-31
1
-52
-45
-
SG&A
-756
64
7
-6
-692
-0.9%
Other operating income/(expenses)
-5
-
1
-2
-6
-
Normalized EBIT
-725
33
10
-60
-742
-8.6%
Normalized EBITDA
-541
32
7
-43
-545
-8.5%
Annex 3: Consolidated statement of
financial position
Million US dollar
30 June 2023
31 December 2022
.
ASSETS
Non-current assets
Property, plant and equipment
27 181
26 671
Goodwill
116 168
113 010
Intangible assets
40 973
40 209
Investments in associates
4 728
4 656
Investment securities
179
175
Deferred tax assets
2 836
2 300
Employee benefits
11
11
Income tax receivables
835
883
Derivatives
62
60
Trade and other receivables
1 895
1 782
Total non-current assets
194 868
189 757
Current assets
Investment securities
85
97
Inventories
6 839
6 612
Income tax receivables
912
813
Derivatives
157
331
Trade and other receivables
6 609
5 330
Cash and cash equivalents
6 848
9 973
Assets classified as held for sale
35
30
Total current assets
21 483
23 186
Total assets
216 352
212 943
EQUITY AND LIABILITIES
Equity
Issued capital
1 736
1 736
Share premium
17 620
17 620
Reserves
18 835
15 218
Retained earnings
39 269
38 823
Equity attributable to equity holders
of AB InBev
77 460
73 398
Non-controlling interests
11 324
10 880
Total equity
88 783
84 278
Non-current liabilities
Interest-bearing loans and borrowings
78 323
78 880
Employee benefits
1 521
1 534
Deferred tax liabilities
12 003
11 818
Income tax payables
595
610
Derivatives
113
184
Trade and other payables
872
859
Provisions
370
396
Total non-current liabilities
93 796
94 282
Current liabilities
Bank overdrafts
53
83
Interest-bearing loans and borrowings
2 524
1 029
Income tax payables
1 263
1 438
Derivatives
6 340
5 308
Trade and other payables
23 347
26 349
Provisions
244
176
Total current liabilities
33 773
34 383
Total equity and liabilities
216 352
212 943
Annex 4: Consolidated statement of cash
flows
For the six-month period ended 30
June
Million US dollar
2023
2022
.
OPERATING ACTIVITIES
Profit of the period
2 655
2 474
Depreciation, amortization and
impairment
2 595
2 477
Net finance cost/(income)
3 223
2 268
Equity-settled share-based payment
expense
286
237
Income tax expense
1 192
1 244
Other non-cash items
321
-225
Share of result of associates
-105
1 014
Cash flow from operating activities
before changes in working capital and use of provisions
10 167
9 489
Decrease/(increase) in trade and other
receivables
-1 325
-581
Decrease/(increase) in inventories
-228
-833
Increase/(decrease) in trade and other
payables
-3 062
-1 925
Pension contributions and use of
provisions
-192
-195
Cash generated from operations
5 360
5 955
Interest paid
-2 322
-2 082
Interest received
512
177
Dividends received
43
50
Income tax paid
-1 996
-1 918
Cash flow from operating
activities
1 597
2 182
.
INVESTING ACTIVITIES
Acquisition of property, plant and
equipment and of intangible assets
-2 107
-2 002
Proceeds from sale of property, plant and
equipment and of intangible assets
44
63
Sale/(acquisition) of subsidiaries, net of
cash disposed/ acquired of
-8
-44
Proceeds from sale/(acquisition) of other
assets
10
66
Cash flow from/(used in) investing
activities
-2 061
-1 917
.
FINANCING ACTIVITIES
Sale/(purchase) of non-controlling
interests
-3
-52
Proceeds from borrowings
181
68
Payments on borrowings
-26
-3 520
Cash net finance (cost)/income other than
interests
-693
-326
Payment of lease liabilities
-359
-286
Dividends paid
-1 923
-1 276
Cash flow from/(used in) financing
activities
-2 823
-5 392
.
Net increase/(decrease) in cash and
cash equivalents
-3 287
-5 128
Cash and cash equivalents less bank
overdrafts at beginning of year
9 890
12 043
Effect of exchange rate fluctuations
191
-18
Cash and cash equivalents less bank
overdrafts at end of period
6 794
6 897
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230802588545/en/
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
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