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 megabrand performance and digital transformation initiatives.

• Revenue grew 2.7% year-over-year in 2Q24, with growth in 65% of markets and 3.3% increase in megabrand revenues, led by Corona's 5.6% growth outside its home market.

• Free cash flow improved by $1.4 billion in HY24, supporting deleveraging and capital returns.

• Accelerated digital transformation, with ~70% of revenues now digital, BEES Marketplace GMV up 55% to $530 million, and BEES platform GMV reaching $11.7 billion.

• Strategic focus remains on leading category growth, digital ecosystem expansion, and business optimization.

Financial highlights

• 2Q24 revenue: $15,333M (+2.7%); normalized EBITDA: $5,302M (+10.2%); normalized EBITDA margin: 34.6% (+236bps).

• Underlying EPS reached $0.90, a 25% increase year-over-year.

• Total volumes declined by 0.8% in 2Q24, with own beer volumes down 1.3% and non-beer up 3.4%.

• Net leverage improved to 3.42x, down from 3.7x year-over-year.

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

Outlook and guidance

• Confirms 4%-8% medium- to long-term EBITDA growth guidance for FY24, emphasizing consistency over quarterly adjustments.

• Investments in mega platforms and brand activations are expected to drive further category growth in 2H24.

• Management highlights easier comps in China for H2 but notes macro challenges persist.

• Net finance costs projected at $220–250M per quarter; average gross debt coupon ~4%.

• Normalized effective tax rate for FY24 expected at 27–29%.