Anheuser-Busch InBev NV Q3 FY2024 earnings call

Strategic Pillars - Lead and grow the category: Mega brands like Corona drove growth, increasing net revenue 3.1%, with Corona growing revenue 10.2% outside Mexico. Non-alcohol beer segment seen as opportunity, with Corona Cero doubling volumes and revenues in over 60% of key markets in Q3. - Digitized and monetized ecosystem: Generated $12.1 billion in gross merchandising value, a 14% y-o-y increase, reached 3.9 million monthly active users, Net Promoter Score improved to +66. Marketplace generated 9.5 million orders of non-ABI products, $630 million GMV this quarter, up 51% y-o-y. Digital direct-to-consumer platforms generated ~19 million unique orders and 11% revenue growth. - Optimize business: EBITDA margin improved 169 basis points, margin expansions in four of five operating regions. Debt maturities well distributed, no relevant medium-term refinancing needs. Announced $2 billion share buyback program to be executed within 12 months.

Total revenue grew 2.1% this quarter. Revenue per hectoliter grew 4.6% due to revenue management and premiumization. Volumes increased in 50% of markets but declined 2.4% overall due to softness in China and Argentina. In North America, U.S. beer industry resilient, gained volume share, EBITDA grew 13.7% with 375 basis points margin improvement. Middle Americas: Mexico volumes declined low-single digits but outperformed industry; Colombia had high-single digit top line and double-digit bottom line growth. South America: Brazil had mid-single digit top line and double-digit bottom line growth, volume up 1.3% led by premium brands. EMEA: Europe had low-single digit bottom line growth with margin recovery; South Africa had double-digit top and bottom line growth. APAC: China revenue declined 16.1% due to soft consumer environment and on-premise channel weakness.

Raised full-year EBITDA outlook to 6%-8%. Announced a $2 billion share buyback program to be executed within the next 12 months.

Operating environment remains dynamic in some markets; soft consumer environment in China and Argentina impacted volumes.

Q: Rob Ottenstein asked about the progress of the U.S. business and Michelob ULTRA Zero.

A: Michel Doukeris said the U.S. beer industry is resilient, Michelob ULTRA and Busch Light gained volume share, and Michelob ULTRA Zero is a good proposition with growth potential.

Q: Edward Mundy asked about China's situation and margins.

A: Michel Doukeris said China's soft consumer environment is cyclical, and Fernando Tennenbaum said margins should continue to improve in 2025.

Q: Sanjeet Aujla asked about Middle Americas and capital allocation.

A: Michel Doukeris said Middle Americas has short-term turbulence but strong fundamentals, and Fernando Tennenbaum said capital allocation aims to maximize value creation.

Q: Laurence Whyatt asked about the share buyback amount and European consumer behavior.

A: Fernando Tennenbaum said $2 billion reflects added flexibility, and Michel Doukeris said Europe has share gains in premium segments.

Q: Mitch Collett asked about Busch Light and spirits-based RTDs.

A: Michel Doukeris said Busch Light is growing strongly, and spirits-based RTDs have big growth headroom.

Q: Chris Pitcher asked about China media investment and BEES rollout.

A: Michel Doukeris said they control what they can in China and BEES has massive coverage.

Q: Simon Hales asked about share buyback and Brazil pricing.

A: Fernando Tennenbaum said can't speak to Altria's intentions, and Michel Doukeris said Brazil has healthy pricing and premium share gains.

Q: Andrea Pistacchi asked about SG&A and U.S. portfolio.

A: Fernando Tennenbaum said SG&A efficiency is part of strategy optimization, and Michel Doukeris said U.S. portfolio is rebalanced with growth potential.

Q: Celine Pannuti asked about SG&A, pricing, and premiumization.

A: Fernando Tennenbaum talked about normalized costs, and Michel Doukeris said they play the long-term game with brand premiumization and margin potential.