Anheuser-Busch InBev (ABI) Q1 2025 earnings summary

Executive summary

• EBITDA grew 7.9% to $4,855M with margin expansion of 218bps to 35.6% in 1Q25, reaching the top end of the outlook, and Underlying EPS rose 7.1% to $0.81 (20.2% in constant currency), driven by EBIT growth and lower net finance costs.

• Revenue increased 1.5% year-over-year to $13,628M, with revenue per hl up 3.7%, despite a 2.2% volume decline due to calendar effects.

• Megabrands, led by Corona, drove growth and premiumization, with Corona revenue up 11.2% outside Mexico and double-digit volume growth in over 30 markets.

• No-alcohol beer portfolio revenues rose 34%, with Corona Cero achieving triple-digit growth and share gains in ~75% of markets.

• BEES Marketplace GMV grew 53% to $645M; overall BEES GMV up 10% to $11.6B, and digital DTC revenue up 12% to $117M.

Financial highlights

• Underlying profit was $1,606M, up from $1,509M in 1Q24; reported profit attributable to equity holders was $2,148M, aided by non-underlying items.

• Gross margin expanded to 55.6% (+203bps), and normalized EBIT increased 10.3% to $3,587M.

• EBITDA margin expanded by 218bps to 35.6%, with margin expansion in four of five operating regions.

• Underlying EPS at $0.81, up 7.1% in USD and 20.2% in constant currency.

• Net finance costs improved to $(984)M from $(1,187)M, supported by deleveraging and mark-to-market gains on derivatives.

Outlook and guidance

• Maintains FY25 outlook of 4–8% EBITDA growth, with margin expansion expected to continue, though cost pressures may increase in the second half.

• Net capital expenditure guidance for FY25 is $3.5–4.0B; normalized effective tax rate expected at 26–28%; average gross debt coupon ~4%.

• Net finance costs projected at $190–220M per quarter.

• Expects volume performance to improve in Q2 and the rest of the year as calendar effects normalize.

• Confident in ability to deliver on 2025 outlook, energized by megabrand and platform opportunities.