Anheuser-Busch InBev (ABI) Q3 2024 earnings summary

Executive summary

• Revenue grew in over 60% of markets, with EBITDA up 7.1% and margin expansion of 169bps year-over-year.

• Underlying EPS increased 14% to $0.98 per share, with organic EBITDA growth contributing $0.19 per share.

• Announced a $2 billion share buyback program to be executed within 12 months, doubling last year's buyback.

• Digital transformation accelerated, with 72% of revenues now digital and BEES reaching 3.9 million monthly active users and $12.1B GMV, up 14% year-over-year.

• Mega Brands, especially Corona, Michelob Ultra, and Busch Light, drove market share gains and premiumization.

Financial highlights

• Total revenue grew 2.1% year-over-year, with revenue per hectoliter up 4.6%.

• Volumes declined 2.4% overall, with own beer down 3.1% and non-beer up 0.6%.

• Normalized EBITDA margin reached 36.0%, up 169bps year-over-year.

• Gross margin improved to 55.6% in 3Q24 (+183bps year-over-year).

• Underlying profit in 3Q24 was $1,971M, up from $1,735M in 3Q23.

Outlook and guidance

• Full-year 2024 EBITDA growth guidance raised to 6%-8%, reflecting strong year-to-date performance and ongoing momentum.

• 2025 expected to be a more normalized cost year, with some cost pressures but generally in line with inflation.

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

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

• FY24 net capital expenditure forecasted at $4.0–4.5B.