• Revenue: Reached an all-time high of $59.8 billion, with organic growth offsetting FX headwinds.
• EBITDA: Nearly $21 billion, with margin expansion across all five operating regions.
• Net Debt-to-EBITDA Ratio: Reduced to 2.89 times, below 3 times for the first time since 2015.
• Free Cash Flow: Increased by $2.5 billion, reaching $11.3 billion in 2024.
• Underlying EPS: Increased by 15.4% to $3.53 per share.
• Dividend: Proposed full year dividend of EUR1 per share, a 22% increase versus last year.
• BEES Marketplace GMV: Delivered $2.5 billion, a 57% increase versus last year.
• Volume Performance: Total volume declined by 1.4%, with growth in most markets except China and Argentina.
• Corona Brand Growth: Volumes increased by 9.4% outside of Mexico.
• Sales and Marketing Investment: $7.2 billion in 2024.

• Warning! GuruFocus has detected 4 Warning Signs with BUD.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Anheuser-Busch InBev SA/NV (NYSE:BUD) achieved all-time high US dollar revenues with growth in 75% of its markets.
• The BEES marketplace delivered $2.5 billion in GMV, a 57% increase compared to the previous year.
• EBITDA grew at the top end of the company's outlook, reaching nearly $21 billion with margin expansion across all five operating regions.
• The company achieved a significant milestone in its deleveraging journey with a net debt-to-EBITDA ratio of 2.89 times, below 3 times for the first time since 2015.
• The Board proposed a full-year dividend of EUR1 per share, a 22% increase compared to the previous year.

Negative Points

• Total volume performance in 2024 was constrained by a soft consumer environment in China and Argentina, leading to a total volume decline of 1.4%.
• The company underperformed in the Chinese market due to a challenging consumer environment and on-premise channel impacts.
• The US margin expansion in Q4 was lower than in previous quarters, partly due to increased investments and higher COGS.
• Currency depreciation in Latin America poses a concern for raw material costs and COGS.
• The first quarter of 2025 is expected to face challenges due to fewer selling days, Easter timing, and shipment phasing comparables in the US and China.

Q & A Highlights

Q: With the significant increase in free cash flow, what are the potential uses for this increased flexibility? Are major acquisitions off the table? A: Fernando Tennenbaum, CFO, explained that the primary focus remains on organic growth, with $55 billion invested from 2021 to 2024. The company will balance between deleveraging, returning capital to shareholders, and selective M&A. With leverage below 3 times, there's increased flexibility for capital allocation, including a $2 billion share buyback and a 22% dividend increase.

Q: How is AB InBev planning to address the challenges in China, and what is the strategy for growth there? A: Michel Doukeris, CEO, noted that despite a soft consumer environment, the company sees significant potential in China. They are increasing investments, focusing on mega brands, and enhancing execution, particularly during key events like the Chinese New Year. The company expects conditions to improve throughout the year.

Q: Can you elaborate on the margin outlook for the US, considering recent investments and cost pressures? A: Michel Doukeris highlighted that while each quarter is unique, the US business is gaining momentum with strong brand performance. The focus is on investing to accelerate portfolio growth, with ongoing productivity efforts to manage costs effectively.

Q: How is the company balancing marketing investments with the rise of digital capabilities? A: Michel Doukeris emphasized that while the ratio of marketing spend to sales has decreased, the effectiveness of investments has improved through data-driven strategies and digital platforms. The focus is on maximizing reach and engagement, as demonstrated by successful campaigns like the Super Bowl.

Q: What are the expectations for cash flow in 2025, considering the improvements seen in 2024? A: Fernando Tennenbaum stated that with continued EBITDA growth, efficient CapEx spending, and a normalized working capital cycle, the company is well-positioned to generate strong cash flows in 2025. The focus remains on optimizing resource allocation and maintaining financial discipline.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.