AB InBev's shares rose after the Budweiser brewer reported earnings ahead of analysts' expectations despite a sales volumes miss. The brewer also surprised the markets with improved cash generation, reflecting lower debts and cost cuts, along with an outlook for 2025 in line with market expectations. Here is a selection of analysts' comments:

AB InBev Delivers Positive Performance Driven by the U.S. Despite Volume Miss

0702 GMT - AB InBev delivered a solid 4Q performance with a revenue beat despite a miss in sales volumes, RBC Capital Markets analysts James Edwardes Jones and Wassachon Udomsilpa say in a note. The brewer reported better-than-expected 4Q organic growth driven by North America, South America and EMEA, they say. On the negative side, the 19% volume decrease in China was affected by inventory management, accounting for one third of its volume decline, and continued weakness in the on-premise channel, they add. More importantly, the company showed a debt/Ebitda ratio well below market consensus, they add. "The shape of the profit and loss table was classic consumer staples, with EPS growth stronger than organic Ebitda growth which was more than profit growth which was more than sales growth," they add. (michael.susin@wsj.com)

AB InBev's EPS Beat Gives Room for Upgrades

0901 GMT - AB InBev delivered profit at the top end of guidance for a third year, with solid performance to continue in 2025 and beyond, Jefferies analysts Edward Mundy and Andrei Andon-Ionita say in a note. For the fourth quarter, the brewer reported strong earnings per share of $3.53, while the full year result beat market expectations supported by higher underlying profit growth and favorable financial items, they say. Following the EPS beat, Jefferies analysts expect that a number of positive factors, such as lower finance costs and easing foreign exchange headwinds, could drive EPS consensus to a low-single digit upgrade in 2025. Shares are up 7.3% at 56.12 euros. (michael.susin@wsj.com)

AB InBev's Cash Flow Likely to Improve Along With Lower Debts

0939 GMT - AB InBev's 4Q and profitability came ahead of expectations despite lower volumes, ING analysts say in a note. The brewer's revenue growth by 2.5% to $14.84 billion beat ING's forecast by 8.7% and consensus by 4.7%, although volumes were down by 2%, they say. AB InBev reduced its debt/Ebitda ratio, reflected in the 22% dividend increase, they say. Also, AB InBev expects lower capex in the range of $3.5 billion to $4.0 billion, compared with consensus of $4.5 billion, they say. This is likely to drive some modest upgrades on 2025 free-cash-flow expectations, the analysts add. Ebitda growth remains in line with the company's long-term target, they say. Shares are up 7.3% at 56.06 euros. (michael.susin@wsj.com)

AB InBev's Volume Miss Doesn't Take the Shine off of Results

1011 GMT - AB InBev delivered an extremely solid end to the year, with beats to consensus estimates all across metrics, with the exception of softer volumes, Barclays analysts say in a note. That miss was due to weakness in the Chinese market. The brewer remains "the king of cash generation," they say, after the company reduced its debt levels, increased the dividend payout and set Ebitda guidance for 2025 in line with expectations. Market consensus for AB InBev's outlook in 2025 could be potentially upgraded given lower capital expenses and tax guidance, the analysts add. "Overall, this is another extremely solid set of figures from the world's largest brewer." Shares are up 6.9% at 55.9 euros. (michael.susin@wsj.com)

(END) Dow Jones Newswires

February 26, 2025 05:35 ET (10:35 GMT)

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