Anheuser-Busch InBev (ABI) Q2 2024 earnings summary

Executive summary

• Achieved 10.2% EBITDA growth and 25% increase in underlying EPS to $0.90, with margin expansion of 236bps across all five regions, driven by strong megabrand performance and digital initiatives.

• Revenue grew by 2.7% year-over-year in 2Q24, with growth in 65% of markets and megabrands driving market share gains.

• BEES Marketplace GMV rose 55% to $530 million, with the digital platform reaching $11.7 billion in GMV and 3.8 million monthly active users, now capturing 70% of revenue.

• Free cash flow improved by $1.4 billion in the first half of 2024, supporting deleveraging and shareholder returns.

• Completed $1 billion share buyback program and increased dividend, with additional $0.2 billion buyback from Altria.

Financial highlights

• Total revenue grew by 2.7% year-over-year to $15,333M in 2Q24; revenue per hectoliter increased by 3.6%.

• Overall volume declined by 0.8%, with own beer volumes down 1.3% and non-beer up 3.4%.

• EBITDA margin reached 34.6%, expanding by 236bps year-over-year in 2Q24.

• Underlying profit attributable to equity holders was $1,811M in 2Q24, up 24.7% year-over-year.

• Free cash flow in HY24 was ~$0.9B, a $1.4B improvement year-over-year.

Outlook and guidance

• Confirms 4%-8% medium- to long-term EBITDA growth guidance for FY24, with investments in mega platforms and brand activations expected to drive further growth.

• Expects easier comps in China in the second half, but macroeconomic challenges persist.

• Continued focus on digital transformation, sustainability, and increased marketing spend in Q3 due to major sports events.

• Net finance costs projected at $220–250M per quarter; normalized effective tax rate for FY24 expected at 27–29%.

• Net capital expenditure guidance for FY24: $4.0–4.5B.