Anheuser-Busch InBev Reports Third Quarter 2022 Results

Brussels, Belgium:
 

Anheuser-Busch InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):

 

This press launch options multimedia. View the total launch right here: https://www.businesswire.com/news/home/20221026006095/en/

 

Regulated and inside info¹

 

“We delivered broad-based volume growth of 3.7% this quarter resulting in an accelerated increase in revenue of 12.1%. We continue to see strong consumer demand for our portfolio and a resilient beer category as we navigate the dynamic operating environment. As a result of our performance and continued momentum, we are raising the bottom-end of our FY22 EBITDA outlook.” – Michel Doukeris, CEO, AB InBev

 

Total Revenue

+ 12.1%

Revenue elevated by 12.1% in 3Q22 with income per hl development of 8.0% and by 11.5% in 9M22 with income per hl development of seven.8%.

 

12.7percentincrease in mixed revenues of our world manufacturers, Budweiser, Stella Artois and Corona, exterior of their respective house markets in 3Q22, and 9.6% in 9M22.

 

Approximately 57%of our income now by means of B2B digital platforms with the month-to-month energetic consumer base of BEES reaching 3.1 million customers as of 30 September 2022.

 

Over 385 million USDof income and roughly 17 million ecommerce orders generated by our direct-to-consumer ecosystem in 3Q22.

 

Total Volume

+3.7%

In 3Q22, complete volumes grew by 3.7% , with personal beer volumes up by 3.4% and non-beer volumes up by 5.2% . In 9M22, complete volumes grew by 3.3% with personal beer volumes up by 2.8% and non-beer volumes up by 6.5%.

 

Normalized EBITDA

+ 6.5%

In 3Q22 normalized EBITDA of 5 313 million USD represents a rise of 6.5% with normalized EBITDA margin contraction of 183 bps to 35.2% . In 9M22, normalized EBITDA elevated by 7.0% to 14 896 million USD and normalized EBITDA margin contracted by 143 bps to 34.5%. Normalized EBITDA figures of 9M22 and 9M21 embody an influence of 201 million USD and 226 million USD from tax credit in Brazil that had been recorded in 2Q22 and 2Q21 respectively. For extra particulars, please see web page 10.

 

Underlying Profit

1 682 million USD

Underlying revenue (normalized revenue attributable to fairness holders of AB InBev excluding mark-to-market positive factors and losses linked to the hedging of our share-based cost packages and the influence of hyperinflation) was 1 682 million USD in 3Q22 in comparison with 1 699 million USD in 3Q21 and was 4 354 million USD in 9M22 in comparison with 4 290 million USD in 9M21.

 

Underlying EPS

0.84 USD

Underlying EPS was 0.84 USD in 3Q22, a lower from 0.85 USD in 3Q21 and was 2.16 USD in 9M22, a rise from 2.14 USD in 9M21.

 

¹The enclosed info constitutes inside info as outlined in Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, and controlled info as outlined within the Belgian Royal Decree of 14 November 2007 concerning the duties of issuers of monetary devices which have been admitted for buying and selling on a regulated market. For vital disclaimers and notes on the idea of preparation, please discuss with web page 14.

 

Management feedback

 

Best quarterly quantity efficiency this yr pushed by accelerated digital transformation and continued shopper demand for our model portfolio

 

Our quantity momentum accelerated this quarter as we delivered 3.7% development, even within the context of the continuing dynamic working surroundings. Top-line grew by 12.1% with 8.0% income per hl development, pushed by income administration initiatives and continued premiumization throughout most of our markets. EBITDA elevated by 6.5% as our top-line development was partially offset by anticipated transactional FX and commodity value headwinds and elevated gross sales and advertising and marketing investments in our manufacturers.

 

Following the popularity of our model constructing and inventive advertising and marketing capabilities on the Cannes Lions International Festival of Creativity, we had been honored to be named the World’s Most Effective Marketer within the Global Effie Effectiveness Index for the primary time in our firm historical past.

 

As we proceed on our deleveraging path, our bond portfolio maintains a really manageable weighted common pre-tax coupon charge of roughly 4% with 94% of the portfolio mounted charge. The weighted common maturity stays greater than 16 years with no near- or medium-term refinancing necessities.

 

Consistent execution of our technique

 

We proceed to execute on and spend money on three key strategic pillars to ship constant development and long-term worth creation.

 

See Image 1.

 

1. Lead and develop the class:

This quarter we delivered a broad-based complete quantity enhance of three.7% with development in additional than 60% of our markets.

 

2. Digitize and monetize our ecosystem:

BEES is now dwell in 19 markets and has reached 3.1 million month-to-month energetic customers as of 30 September 2022, a 7% enhance versus 2Q22. BEES Marketplace is now dwell in 14 markets with 44% of BEES clients now additionally Marketplace consumers.

 

3. Optimize our business:

In 9M22, our EBITDA grew by 7.0% and, because of deleveraging, our web curiosity expense decreased by roughly 200 million USD versus 9M21.

 

1. Lead and develop the class:

We are executing on 5 confirmed and scalable levers to drive class enlargement:

 

• Inclusive Category: In 3Q22, shopper participation with our portfolio elevated in most of our focus markets, in response to our estimates, pushed by model, pack and liquid improvements targeted on increasing inclusivity and accessibility. For instance, in Mexico, our pack measurement initiatives throughout each upsizing and downsizing grew robust double-digits this quarter, contributing over 1 million hl’s in quantity and bettering profitability in each the core and above core segments of our portfolio.
• Core Superiority:In 3Q22, our mainstream portfolio continued to outperform the business throughout nearly all of our focus markets, in response to our estimates, and delivered low-teens income development, led by significantly robust performances in Mexico, Brazil and South Africa.
• Occasions Development: Our world non-alcohol beer portfolio delivered double-digit income development this quarter led by Budweiser Zero and Stella Artois Liberté within the US.
• Premiumization:Our above core portfoliogrew income by low-teens this quarter, led by continued double-digit development of Michelob ULTRA within the US and Mexico and additional enlargement of Spaten in Brazil. Our world manufacturers grew income by 12.7% exterior of their house markets this quarter, led by Corona with 23.5% development. Budweiser grew by 8.9% regardless of the influence of COVID-19 restrictions in China, the model’s largest market. Stella Artois grew by 7.0% with continued development in focus markets such because the US and Brazil.
• Beyond Beer:Our world Beyond Beer business grew income by over 10% this quarter, contributing greater than 400 million USD of income. In the US, throughout the spirits-based ready-to-drink phase, our portfolio continued to develop robust double-digits, forward of the business, led by Cutwater and NÜTRL vodka seltzer. In South Africa, Brutal Fruit and Flying Fish delivered continued double-digit quantity development.

 

2. Digitize and monetize our ecosystem

 

• Digitizing {our relationships} with our greater than 6 million clients globally: As of 30 September 2022, BEES is dwell in 19 markets with roughly 57% of our revenues now by means of B2B digital platforms. In 3Q22,BEES reached 3.1 million month-to-month energetic customers and captured roughly 7.7 billion USD in gross merchandise worth (GMV), development of over 40% versus 3Q21. BEES Marketplace is now dwell in 14 markets and generated September annualized revenues from gross sales of third occasion merchandise of roughly 850 million USD. As of September 2022, 44% of BEES clients had been additionally Marketplace consumers.
• Leading the best way in DTC options: Our digital direct-to-consumer (DTC) merchandise, Ze Delivery, TaDa and PerfectDraft are actually out there in 17 markets and generated over 100 million USD in income and 17 million orders within the quarter. Our community of bodily retail merchandise, comparable to Modelorama in Mexico and Pit Stop in Brazil, continued to ship income development throughout our footprint of roughly 13 000 shops. Combined, our omni-channel DTC ecosystem of digital and bodily DTC merchandise generated income of over 1 billion USD in 9M22, mid-teens development versus 9M21.

 

3. Optimize our business

In 9M22, we continued to concentrate on disciplined useful resource allocation and delivered 7.0% EBITDA development. Our bond portfolio maintains a really manageable weighted common pre-tax coupon charge of roughly 4% with 94% of the portfolio mounted charge. Our web curiosity expense for 9M22 decreased by roughly 200 million USD versus 9M21, principally because of our gross debt discount efforts.

 

Advancing our ESG priorities

As we proceed to advance our sustainability agenda, we had been proud to just lately be included on Fortune’s Change the World List in recognition of our world initiatives in water stewardship. We are additionally making progress in the direction of our ambition to attain web zero by 2040, reaching carbon neutrality at 5 amenities in Brazil and one in Argentina in 9M22.

 

Creating a future with extra cheers

Through the implementation of our class enlargement levers, we proceed to guide and develop the beer class leading to broad-based quantity development of three.7% this quarter. We are digitizing and monetizing our ecosystem with 57% of our income now by means of digital channels and we proceed to optimize our business by means of environment friendly useful resource allocation and dynamically balancing our capital allocation priorities to drive long-term worth creation. We stay targeted on the constant execution of our technique and ESG priorities to generate worth for our stakeholders and ship on our objective to create a future with extra cheers.

 

2022 Outlook

 

1. Overall Performance: We count on our FY22 EBITDA to develop between 6-8% and our income to develop forward of EBITDA from a wholesome mixture of quantity and worth. Our medium-term outlook, which goals to ship EBITDA development of 4-8%, stays unchanged.
2. Net Finance Costs: Net pension curiosity bills and accretion bills are anticipated to be within the vary of 170 to 200 million USD per quarter, relying on forex and rate of interest fluctuations. We count on the typical gross debt coupon in FY22 to be roughly 4.0%. Net finance prices will proceed to be impacted by any positive factors and losses associated to the hedging of our share-based cost packages.
3. Effective Tax Rates (ETR): We count on the normalized ETR in FY22 to be within the vary of 28% to 30% excluding any positive factors and losses referring to the hedging of our share-based cost packages. The ETR outlook doesn’t take into account the influence of potential future adjustments in laws.
4. Net Capital Expenditure: We count on web capital expenditure of between 4.5 and 5.0 billion USD in FY22.

 

Figure 1. Consolidated efficiency (million USD)
	3Q21	3Q22	Organic
			development
Total Volumes (thousand hls)	151 629	157 284	3.7%
AB InBev personal beer	131 354	137 796	3.4%
Non-beer volumes	19 308	18 332	5.2%
Third occasion merchandise	968	1 156	19.4%
Revenue	14 274	15 091	12.1%
Gross revenue	8 236	8 232	6.2%
Gross margin	57.7%	54.5%	-300 bps
Normalized EBITDA	5 214	5 313	6.5%
Normalized EBITDA margin	36.5%	35.2%	-183 bps
Normalized EBIT	4 020	4 055	4.4%
Normalized EBIT margin	28.2%	26.9%	-195 bps
Profit attributable to fairness holders of AB InBev	250	1 433
Normalized revenue attributable to fairness holders of AB InBev	1 002	1 629
Underlying revenue attributable to fairness holders of AB InBev	1 699	1 682
Earnings per share (USD)	0.12	0.71
Normalized earnings per share (USD)	0.50	0.81
Underlying earnings per share (USD)	0.85	0.84
.
.
	9M21	9M22	Organic
			development
Total Volumes (thousand hls)	432 027	446 358	3.3%
AB InBev personal beer	378 989	389 488	2.8%
Non-beer volumes	50 551	53 820	6.5%
Third occasion merchandise	2 487	3 050	22.6%
Revenue	40 106	43 118	11.5%
Gross revenue	23 105	23 475	5.9%
Gross margin	57.6%	54.4%	-286 bps
Normalized EBITDA	14 327	14 896	7.0%
Normalized EBITDA margin	35.7%	34.5%	-143 bps
Normalized EBIT	10 788	11 160	5.9%
Normalized EBIT margin	26.9%	25.9%	-134 bps
Profit attributable to fairness holders of AB InBev	2 708	3 126
Normalized revenue attributable to fairness holders of AB InBev	3 926	4 489
Underlying revenue attributable to fairness holders of AB InBev	4 290	4 354
Earnings per share (USD)	1.35	1.55
Normalized earnings per share (USD)	1.96	2.23
Underlying earnings per share (USD)	2.14	2.16

Figure 2. Volumes (thousand hls)
	3Q21	Scope	Organic	3Q22	Organic development
			development		Total Volume	Own beer quantity
North America	28 137	1	-362	27 775	-1.3%	-1.7%
Middle Americas	35 591	19	1 705	37 314	4.8%	6.0%
South America	39 399	106	1 140	40 644	2.9%	0.4%
EMEA	22 124	24	1 576	23 724	7.1%	7.3%
Asia Pacific	26 020	1	1 589	27 610	6.1%	6.1%
Global Export and Holding Companies	360	-150	8	217	3.7%	-0.1%
AB InBev Worldwide	151 629	–	5 655	157 284	3.7%	3.4%
.
	9M21	Scope	Organic	9M22	Organic development
			development		Total Volume	Own beer quantity
North America	81 389	1	-2 166	79 223	-2.7%	-2.6%
Middle Americas	103 570	41	5 727	109 338	5.5%	6.6%
South America	111 327	257	5 875	117 459	5.3%	2.5%
EMEA	62 665	53	3 968	66 686	6.3%	6.3%
Asia Pacific	72 101	2	891	72 995	1.2%	1.3%
Global Export and Holding Companies	975	-354	36	657	5.8%	4.2%
AB InBev Worldwide	432 027	–	14 331	446 358	3.3%	2.8%

Key Market Performances

 

United States: Continued top-line development pushed by our above core portfolio

 

• Operating efficiency:
  

  • 3Q22: Revenue grew by 1.9% with income per hl rising by 3.8%. Sales-to-wholesalers (STWs) had been down by 1.8% and sales-to-retailers (STRs) declined by 1.7%, estimated to be under the business, with September volumes benefitting from cargo phasing forward of our October worth enhance. EBITDA declined by 2.0%.
  • 9M22: Top line grew by 2.2% with income per hl development of 5.1%. Our STWs had been down by 2.7% and STR’s declined by 3.1%. EBITDA decreased by 0.9%.
    
     

• Commercial highlights: The beer business stays resilient even within the context of an ongoing inflationary surroundings. We proceed to progress on our industrial technique to rebalance our portfolio with our above core beer and Beyond Beer manufacturers now producing roughly 40% of our income. Our above core beer portfolio outperformed the business this quarter, led by Michelob ULTRA which grew by double-digits and complemented by development in Stella Artois, Kona Big Wave and Estrella Jalisco. In Beyond Beer, our spirits-based ready-to-drink portfolio continued to outperform the business, led by Cutwater, the #1 spirits-based cocktail within the nation, and NÜTRL vodka seltzer which each grew robust double-digits.

 

Mexico: Double-digit top- and bottom-line development with accelerated market share achieve

 

• Operating efficiency:
  

  • 3Q22: Revenue grew by mid-twenties with income per hl development of mid-teens, pushed by income administration initiatives and premiumization. Our volumes grew by greater than 10% as we continued to outperform the business. EBITDA grew by low-twenties.
  • 9M22: Top-line grew by high-teens with high-single digit quantity and income per hl development of greater than 10%. EBITDA elevated by mid-teens.
    
     

• Commercial highlights: We delivered quantity development throughout all segments of our portfolio this quarter, with our above core portfolio delivering development within the high-twenties, led by Modelo, Pacifico and Michelob Ultra. We continued to develop our distribution footprint, increasing into over 800 extra Oxxo shops this quarter with the rollout now roughly 80% full. BEES continues to broaden, with roughly 86% of our revenues now digital and 60% of our BEES clients now additionally BEES Marketplace consumers.

 

Colombia: Double-digit top-line development with document excessive per capita consumption

 

• Operating efficiency:
  

  • 3Q22: Revenue grew by high-teens with high-single digit quantity and low-teens income per hl development, pushed by income administration initiatives and premiumization. EBITDA grew by high-single digits.
  • 9M22: Revenue grew by low-twenties with quantity rising by high-single digits and income per hl development of low-teens. EBITDA grew by low-teens.
    
     

• Commercial highlights: Led by the constant implementation of our class enlargement levers, we delivered quantity development throughout all segments of our portfolio this quarter. Our premium and tremendous premium portfolio continued to paved the way, delivering high-teens quantity development and reaching an all-time excessive quantity and share of our complete income. More than 30% of our BEES clients are actually additionally BEES Marketplace consumers.

 

Brazil: Double-digit top- and bottom-line development with margin enlargement

 

• Operating efficiency:
  

  • 3Q22: Revenue grew by 20.1%, with quantity development of two.4% and income per hl development of 17.3%. Our beer volumes had been flat, as we cycled a powerful efficiency in 3Q21. Non-beer volumes grew by 9.2%. EBITDA grew by 23.7% with margin enlargement of 75bps.
  • 9M22: Total quantity grew by 5.9% with beer volumes up by 3.4% and non-beer volumes up by 13.9%. Revenue elevated by 21.1%, with income per hl development of 14.3%. EBITDA grew by 18.1%.
    
     

• Commercial highlights: Our premium and tremendous premium manufacturers continued to outperform this quarter, delivering high-single digit quantity development. Our core beer portfolio elevated volumes by mid-single digits, and we continued to take a position behind the event of our core plus manufacturers. Non-beer quantity development was led by the efficiency of our premium and wellness manufacturers. Over 70% of our BEES clients are actually additionally BEES Marketplace consumers. Our digital DTC platform, Zé Delivery, fulfilled over 15 million orders in 3Q22, and has reached 4.3 million month-to-month energetic customers.

 

Europe: Double-digit top-line development offset by elevated value pressures

 

• Operating efficiency:
  
  

• Commercial highlights: We proceed to premiumize our portfolio in Europe, with our world and tremendous premium manufacturers each delivering double-digit income development this quarter. Led by the constant execution of our technique, in 9M22 we expanded or maintained market share within the majority of our key markets, in response to our estimates. Our DTC product, PerfectDraft, expanded its shopper base by greater than 20% versus 3Q21.

   

South Africa: Double-digit top- and bottom-line development and extra funding in capability to help development

 

• Operating efficiency:
  

  • 3Q22: Revenue grew by mid-twenties, with mid-single digit income per hl development, primarily pushed by income administration initiatives. Our volumes grew by high-teens, pushed by the execution of our class enlargement levers and supported by a good comparable from a 25 day ban on alcohol gross sales in 3Q21. EBITDA grew by over 30%. Versus 3Q19, volumes grew by low-teens, forward of the business in response to our estimates.
  • 9M22: Revenue grew by greater than 20% with mid-single digit income per hl development and mid-teens enhance in quantity. EBITDA grew by high-twenties.
    
     

• Commercial highlights: We delivered development throughout all segments of our portfolio this quarter, regardless of manufacturing capability constraints limiting our skill to completely service shopper demand. We have invested in extra capability which is anticipated to come back on-line in 4Q22. Our efficiency was led by over 30% income development in our main core model, Carling Black Label. Our premium, tremendous premium and Beyond Beer portfolios all delivered a double-digit enhance in volumes. Over 50% of BEES clients are actually additionally BEES Marketplace customers.

 

China: Underlying shopper demand stays constant, although business impacted bycontinued COVID-19 restrictions

 

• Operating efficiency:
  

  • 3Q22: COVID-19 restrictions continued to disproportionately influence our key areas and gross sales channels. Our volumes grew by 3.6%. Revenue per hl declined by 1.9%, pushed by unfavorable channel and geographic combine, leading to complete income development of 1.7%. EBITDA declined by 2.3%.
  • 9M22: Volumes declined by 2.2% and income per hl grew by 0.7%, resulting in complete income decline of 1.6%. EBITDA declined by 5.1%
    
     

• Commercial highlights: We proceed to take a position behind our industrial technique, targeted on premiumization, channel and geographic enlargement and digital transformation. In our enlargement cities, excluding these impacted by restrictions, Budweiser and our tremendous premium portfolio grew volumes by double-digits. Our BEES platform has expanded to greater than 90 cities with over 10% of our income by means of digital channels in September.

 

Highlights from our different markets

 

• Canada: Our complete quantity outperformed the business. Total income grew by high-single digits this quarter with quantity development of mid-single digits.
• Peru: Fueled by the constant execution of our industrial technique and ongoing portfolio transformation, we delivered document excessive volumes for the quarter. Revenue grew by low-teens with high-single digit income per hl and low-single digit quantity development. Over 50% of BEES clients are actually additionally BEES Marketplace consumers.
• Ecuador: We delivered low-twenties income development with a quantity enhance of low-teens this quarter, pushed by continued enlargement of the beer class and a good comparable from COVID-19 restoration. Over 60% of BEES clients are actually additionally BEES Marketplace consumers.
• Argentina: Volumes grew by high-single digits this quarter, led by our core beer portfolio and world manufacturers. Revenue per hl grew by double-digits, pushed primarily by income administration initiatives in a extremely inflationary surroundings.
• Africa excluding South Africa: In Nigeria, our top-line grew by high-single digits this quarter, pushed by income administration initiatives, although volumes declined as a consequence of a gentle business and ongoing provide chain constraints. In our different key markets, we delivered double-digit income development in 3Q22, pushed by Tanzania, Zambia and Botswana. We are investing in extra capability in Zambia to help development.
• South Korea: Volumes grew by mid-teens this quarter, pushed by our main core model ‘All New Cass’, continued market share positive factors and additional enchancment within the working surroundings. Revenue per hl elevated by mid-single digits leading to double-digit income development.

 

Consolidated Income Statement
Figure 3. Consolidated revenue assertion (million USD)
	3Q21	3Q22	Organic
			development
Revenue	14 274	15 091	12.1%
Cost of gross sales	-6 039	-6 860	-20.0%
Gross revenue	8 236	8 232	6.2%
SG&A	-4 379	-4 347	-8.0%
Other working revenue/(bills)	163	170	8.1%
Normalized revenue from operations (normalized EBIT)	4 020	4 055	4.4%
Non-underlying gadgets above EBIT	-73	-165
Net finance revenue/(value)	-1 900	-1 392
Non-underlying web finance revenue/(value)	-747	-65
Share of outcomes of associates	73	81
Income tax expense	-679	-688
Profit	695	1 825
Profit attributable to non-controlling curiosity	444	392
Profit attributable to fairness holders of AB InBev	250	1 433
Normalized EBITDA	5 214	5 313	6.5%
Normalized revenue attributable to fairness holders of AB InBev	1 002	1 629
.
	9M21	9M22	Organic
			development
Revenue	40 106	43 118	11.5%
Cost of gross sales	-17 001	-19 644	-19.0%
Gross revenue	23 105	23 475	5.9%
SG&A	-12 950	-12 963	-6.1%
Other working revenue/(bills)	633	648	9.9%
Normalized revenue from operations (normalized EBIT)	10 788	11 160	5.9%
Non-underlying gadgets above EBIT	-290	-270
Net finance revenue/(value)	-3 948	-3 674
Non-underlying web finance revenue/(value)	-1 046	-51
Share of outcomes of associates	174	210
Non-underlying share of outcomes of associates	–	-1 143
Income tax expense	-1 910	-1 933
Profit	3 768	4 299
Profit attributable to non-controlling curiosity	1 061	1 174
Profit attributable to fairness holders of AB InBev	2 708	3 126
Normalized EBITDA	14 327	14 896	7.0%
Normalized revenue attributable to fairness holders of AB InBev	3 926	4 489

Consolidated different working revenue/(bills) in 9M22elevated by 9.9% primarily pushed by greater authorities grants. In 9M22, Ambev acknowledged 201 million USD revenue in different working revenue associated to tax credit (9M21: 226 million USD). The web influence is offered as a scope change and doesn’t have an effect on the offered natural development charges.

 

Non-underlying gadgets above EBIT & Non-underlying share of outcomes of associates
Figure 4. Non-underlying gadgets above EBIT & Non-underlying share of outcomes of associates (million USD)
	3Q21	3Q22	9M21	9M22
COVID-19 prices	-30	-2	-84	-16
Restructuring	-38	-13	-135	-63
Business and asset disposal (incl. impairment losses)	–	-149	14	-143
AB InBev Efes associated prices	–	-1	–	-48
Acquisition prices / Business mixtures	-5	–	-12	–
SAB Zenzele Kabili prices	–	–	-73	–
Non-underlying gadgets in EBIT	-73	-165	-290	-270
Non-underlying share of outcomes of associates	–	–	–	-1 143

EBIT excludes unfavorable non-underlying gadgets of 165 million USD in 3Q22 and 270 million USD in 9M22. Business and asset disposals in 3Q22 comprise primarily impairment of intangible property and different non-core property bought within the interval.

 

Non-underlying share of outcomes of associates consists of the non-cash impairment of 1 143 million USD the corporate recorded on its funding in AB InBev Efes in 1Q22.

 

Net finance revenue/(value)
Figure 5. Net finance revenue/(value) (million USD)
	3Q21	3Q22	9M21	9M22
Net curiosity expense	-880	-826	-2 709	-2 509
Net curiosity on web outlined profit liabilities	-18	-18	-55	-55
Accretion expense	-161	-215	-427	-551
Mark-to-market	-683	-79	-335	83
Net curiosity revenue on Brazilian tax credit	14	34	102	146
Other monetary outcomes	-171	-287	-524	-788
Net finance revenue/(value)	-1 900	-1 392	-3 948	-3 674

Net finance prices in 9M22 had been positively impacted by the mark-to-market achieve on the hedging of our share-based cost packages. The variety of shares coated by the hedging of our share-based cost packages, and the opening and shutting share costs, are proven in determine 6 under.

 

Figure 6. Share-based cost hedge
	3Q21	3Q22	9M21	9M22
Share worth initially of the interval (Euro)	60.81	51.36	57.01	53.17
Share worth on the finish of the interval (Euro)	49.15	46.75	49.15	46.75
Number of fairness spinoff devices on the finish of the interval (hundreds of thousands)	55.0	55.0	55.0	55.0

Non-underlying web finance revenue/(value)

 

Figure 7. Non-underlying web finance revenue/(value) (million USD)
	3Q21	3Q22	9M21	9M22
Mark-to-market	-567	-65	-284	69
Early termination charge of Bonds and Other	-180	–	-762	-120
Non-underlying web finance revenue/(value)	-747	-65	-1 046	-51

Non-underlying web finance value in 9M22 consists of mark-to-market positive factors on spinoff devices entered into to hedge the shares issued in relation to the Grupo Modelo and SAB mixtures.

 

The variety of shares coated by the hedging of the deferred share instrument and the restricted shares are proven in determine 8, along with the opening and shutting share costs.

 

Figure 8. Non-underlying fairness spinoff devices
	3Q21	3Q22	9M21	9M22
Share worth initially of the interval (Euro)	60.81	51.36	57.01	53.17
Share worth on the finish of the interval (Euro)	49.15	46.75	49.15	46.75
Number of fairness spinoff devices on the finish of the interval (hundreds of thousands)	45.5	45.5	45.5	45.5

Income tax expense
Figure 9. Income tax expense (million USD)
	3Q21	3Q22	9M21	9M22
Income tax expense	679	688	1 910	1 933
Effective tax charge	52.2%	28.3%	34.7%	27.0%
Normalized efficient tax charge	35.1%	27.1%	29.5%	27.2%
Normalized efficient tax charge earlier than MTM	26.5%	26.3%	28.1%	27.5%

The lower in normalized ETR excluding mark-to-market positive factors and losses linked to the hedging of our share-based cost packages in 3Q22 in comparison with 3Q21 and the lower in 9M22 in comparison with 9M21 is pushed by nation combine.

 

Figure 10. Normalized Profit attributable to fairness holders of AB InBev (million USD)
	3Q21	3Q22	9M21	9M22
Profit attributable to fairness holders of AB InBev	250	1 433	2 708	3 126
Net influence of non-underlying gadgets on revenue	752	195	1 218	1 363
Normalized revenue attributable to fairness holders of AB InBev	1 002	1 629	3 926	4 489
Underlying revenue attributable to fairness holders of AB InBev	1 699	1 682	4 290	4 354

Basic, normalized and underlying EPS
Figure 11. Earnings per share (USD)
	3Q21	3Q22	9M21	9M22
Basic earnings per share	0.12	0.71	1.35	1.55
Net influence of non-underlying gadgets on revenue	0.38	0.09	0.61	0.68
Normalized earnings per share	0.50	0.81	1.96	2.23
Underlying earnings per share	0.85	0.84	2.14	2.16
Weighted common variety of peculiar and restricted shares (million)	2 006	2 012	2 006	2 012

Figure 12. Key parts – Normalized Earnings per share in USD
	3Q21	3Q22	9M21	9M22
Normalized EBIT earlier than hyperinflation	2.01	2.02	5.40	5.58
Hyperinflation impacts in normalized EBIT	–	-0.01	-0.02	-0.03
Normalized EBIT	2.01	2.02	5.38	5.55
Mark-to-market (share-based cost packages)	-0.34	-0.04	-0.17	0.04
Net finance value	-0.61	-0.65	-1.80	-1.87
Income tax expense	-0.37	-0.36	-1.01	-1.01
Associates & non-controlling curiosity	-0.19	-0.15	-0.45	-0.48
Normalized EPS	0.50	0.81	1.96	2.23
Mark-to-market (share-based cost packages)	0.34	0.04	0.17	-0.04
Hyperinflation impacts in EPS	0.01	-0.01	0.01	-0.03
Underlying EPS	0.85	0.84	2.14	2.16
Weighted common variety of peculiar and restricted shares (million)	2 006	2 012	2 006	2 012

Reconciliation between revenue attributable to fairness holders and normalized EBITDA

 

Figure 13. Reconciliation of normalized EBITDA to revenue attributable to fairness holders of AB InBev (million USD)
	3Q21	3Q22	9M21	9M22
Profit attributable to fairness holders of AB InBev	250	1 433	2 708	3 126
Non-controlling pursuits	444	392	1 061	1 174
Profit	695	1 825	3 768	4 299
Income tax expense	679	688	1 910	1 933
Share of results of associates	-73	-81	-174	-210
Non-underlying share of outcomes of associates	–	–	–	1 143
Net finance (revenue)/value	1 900	1 392	3 948	3 674
Non-underlying web finance (revenue)/value	747	65	1 046	51
Non-underlying gadgets above EBIT	73	165	290	270
Normalized EBIT	4 020	4 055	10 788	11 160
Depreciation, amortization and impairment	1 194	1 259	3 539	3 736
Normalized EBITDA	5 214	5 313	14 327	14 896

Normalized EBITDA and normalized EBIT are measures utilized by AB InBev to exhibit the corporate’s underlying efficiency.

 

Normalized EBITDA is calculated excluding the next results from revenue attributable to fairness holders of AB InBev: (i) non-controlling curiosity; (ii) revenue tax expense; (iii) share of outcomes of associates; (iv) non-underlying share of outcomes of associates; (v) web finance value; (vi) non-underlying web finance value; (vii) non-underlying gadgets above EBIT; and (viii) depreciation, amortization and impairment.

 

Normalized EBITDA and normalized EBIT usually are not accounting measures below IFRS accounting and shouldn’t be thought-about as an alternative choice to revenue attributable to fairness holders as a measure of operational efficiency, or an alternative choice to money stream as a measure of liquidity. Normalized EBITDA and normalized EBIT wouldn’t have a normal calculation technique and AB InBev’s definition of normalized EBITDA and normalized EBIT might not be akin to that of different firms.

 

Notes

To facilitate the understanding of AB InBev’s underlying efficiency, the analyses of development, together with all feedback on this press launch, except in any other case indicated, are primarily based on natural development and normalized numbers. In different phrases, financials are analyzed eliminating the influence of adjustments in currencies on translation of international operations, and scope adjustments. Scope adjustments signify the influence of acquisitions and divestitures, the beginning or termination of actions or the switch of actions between segments, curtailment positive factors and losses and yr over yr adjustments in accounting estimates and different assumptions that administration doesn’t take into account as a part of the underlying efficiency of the business. All references per hectoliter (per hl) exclude US non-beer actions. Whenever offered on this doc, all efficiency measures (EBITDA, EBIT, revenue, tax charge, EPS) are offered on a “normalized” foundation, which implies they’re offered earlier than non-underlying gadgets. Non-underlying gadgets are both revenue or bills which don’t happen usually as a part of the conventional actions of the Company. They are offered individually as a result of they’re vital for the understanding of the underlying sustainable efficiency of the Company as a consequence of their measurement or nature. Normalized measures are extra measures utilized by administration and mustn’t change the measures decided in accordance with IFRS as an indicator of the Company’s efficiency. We are reporting the outcomes from Argentina making use of hyperinflation accounting, ranging from the 3Q18 outcomes launch through which we accounted for the hyperinflation influence for the primary 9 months of 2018. The IFRS guidelines (IAS 29) require us to restate the year-to-date outcomes for the change within the common buying energy of the native forex, utilizing official indices earlier than changing the native quantities on the closing charge of the interval. These impacts are excluded from natural calculations and are recognized individually within the annexes throughout the column labeled “Hyperinflation restatement” for the quarter and throughout the column “Currency translation” yr up to now. In 9M22, we reported a optimistic influence on the revenue attributable to fairness holders of AB InBev of 52 million USD. The influence in 9M22 normalized EPS was 0.03 USD. Values within the figures and annexes could not add up, as a consequence of rounding. 3Q22 and 9M22 EPS relies upon a weighted common of two 012 million shares in comparison with a weighted common of two 006 million shares for 3Q21 and 9M21.

 

Legal disclaimer

This launch comprises “forward-looking statements”. These statements are primarily based on the present expectations and views of future occasions and developments of the administration of AB InBev and are naturally topic to uncertainty and adjustments in circumstances. The forward-looking statements contained on this launch embody statements aside from historic details and embody statements usually containing phrases comparable to “will”, “may”, “should”, “believe”, “intends”, “expects”, “anticipates”, “targets”, “estimates”, “likely”, “foresees” and phrases of comparable import. All statements aside from statements of historic details are forward-looking statements. You mustn’t place undue reliance on these forward-looking statements, which mirror the present views of the administration of AB InBev, are topic to quite a few dangers and uncertainties about AB InBev and are depending on many elements, a few of that are exterior of AB InBev’s management. There are vital elements, dangers and uncertainties that would trigger precise outcomes and outcomes to be materially completely different, together with, however not restricted to, the consequences of the COVID-19 pandemic and uncertainties about its influence and length and the dangers and uncertainties referring to AB InBev described below Item 3.D of AB InBev’s Annual Report on Form 20-F filed with the SEC on 18 March 2022. Many of those dangers and uncertainties are, and shall be, exacerbated by the COVID-19 pandemic and the continuing battle in Russia and Ukraine and any worsening of the worldwide business and financial surroundings. Other unknown or unpredictable elements might trigger precise outcomes to vary materially from these within the forward-looking statements. The forward-looking statements needs to be learn along with the opposite cautionary statements which are included elsewhere, together with AB InBev’s most up-to-date Form 20-F and different studies furnished on Form 6-Okay, and another paperwork that AB InBev has made public. Any forward-looking statements made on this communication are certified of their entirety by these cautionary statements and there may be no assurance that the precise outcomes or developments anticipated by AB InBev shall be realized or, even when considerably realized, that they are going to have the anticipated penalties to, or results on, AB InBev or its business or operations. Except as required by regulation, AB InBev undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case. The third quarter 2022 (3Q22) and 9 month (9M22) monetary information set out in Figure 1 (apart from the quantity info), Figures 3 to five, 7, 9, 10 and 13 of this press launch have been extracted from the group’s unaudited condensed consolidated interim monetary statements as of and for the 9 months ended 30 September 2022, which have been reviewed by our statutory auditors PwC Réviseurs d’Entreprises SRL / PwC Bedrijfsrevisoren BV in accordance with the requirements of the Public Company Accounting Oversight Board (United States). Financial information included in Figures 6, 8 11 and 12 have been extracted from the underlying accounting information as of and for the 9 months ended 30 September 2022 (apart from the quantity info). References on this doc to supplies on our web sites, comparable to www.bees.com, are included as an support to their location and usually are not included by reference into this doc.

 

Conference name and webcast

 

Investor Conference name and webcast on Thursday, 27 October 2022:

3.00pm Brussels / 2.00pm London / 9.00am New York

 

Registration particulars:

Webcast (listen-only mode):

AB InBev 3Q & 9M22 Results Webcast

To be part of by telephone, please use one of many following two telephone numbers:

Toll-Free: 877-407-8029

Toll: 201-689-8029

 

About Anheuser-Busch InBev

Anheuser-Busch InBev is a publicly traded firm (Euronext: ABI) primarily based in Leuven, Belgium, with secondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) inventory exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). As an organization, we dream huge to create a future with extra cheers. We are at all times seeking to serve up new methods to satisfy life’s moments, transfer our business ahead and make a significant influence on this planet. We are dedicated to constructing nice manufacturers that stand the take a look at of time and to brewing the most effective beers utilizing the best substances. Our numerous portfolio of properly over 500 beer manufacturers consists of world manufacturers Budweiser®, Corona® and Stella Artois®; multi-country manufacturers Beck’s®, Hoegaarden®, Leffe® and Michelob ULTRA®; and native champions comparable to Aguila®, Antarctica®, Bud Light®, Brahma®, Cass®, Castle®, Castle Lite®, Cristal®, Harbin®, Jupiler®, Modelo Especial®, Quilmes®, Victoria®, Sedrin®, and Skol®. Our brewing heritage dates again greater than 600 years, spanning continents and generations. From our European roots on the Den Hoorn brewery in Leuven, Belgium. To the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle Brewery in South Africa throughout the Johannesburg gold rush. To Bohemia, the primary brewery in Brazil. Geographically diversified with a balanced publicity to developed and creating markets, we leverage the collective strengths of roughly 169,000 colleagues primarily based in practically 50 international locations worldwide. For 2021, AB InBev’s reported income was 54.3 billion USD (excluding JVs and associates).

 

Annex 1

 

AB InBev Worldwide	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	151 629	–	–	–	5 655	157 284	3.7%
of which AB InBev personal beer	131 354	1 885	–	–	4 557	137 796	3.4%
Revenue	14 274	-118	-966	193	1 708	15 091	12.1%
Cost of gross sales	-6 039	3	462	-81	-1 205	-6 860	-20.0%
Gross revenue	8 236	-115	-504	112	503	8 232	6.2%
SG&A	-4 379	111	311	-49	-341	-4 347	-8.0%
Other working revenue/(bills)	163	-1	-12	6	14	170	8.1%
Normalized EBIT	4 020	-5	-206	69	176	4 055	4.4%
Normalized EBITDA	5 214	-12	-302	76	337	5 313	6.5%
Normalized EBITDA margin	36.5%					35.2%	-183 bps
North America	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	28 137	1	–	–	-362	27 775	-1.3%
Revenue	4 342	–	-23	–	122	4 442	2.8%
Cost of gross sales	-1 625	-2	8	–	-180	-1 800	-11.1%
Gross revenue	2 717	-2	-15	–	-58	2 642	-2.1%
SG&A	-1 189	-22	8	–	61	-1 142	5.1%
Other working revenue/(bills)	16	3	–	–	-13	6	-70.3%
Normalized EBIT	1 544	-22	-6	–	-11	1 506	-0.7%
Normalized EBITDA	1 743	-21	-7	–	-29	1 686	-1.6%
Normalized EBITDA margin	40.1%					37.9%	-174 bps
Middle Americas	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	35 591	19	–	–	1 705	37 314	4.8%
Revenue	3 163	-13	-66	–	490	3 574	15.5%
Cost of gross sales	-1 117	6	27	–	-311	-1 395	-28.0%
Gross revenue	2 047	-7	-39	–	179	2 180	8.8%
SG&A	-759	4	15	–	-139	-880	-18.4%
Other working revenue/(bills)	5	–	–	–	-2	3	–
Normalized EBIT	1 292	-3	-24	–	38	1 303	2.9%
Normalized EBITDA	1 572	-3	-29	–	91	1 631	5.8%
Normalized EBITDA margin	49.7%					45.6%	-421 bps
South America	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	39 399	106	–	–	1 140	40 644	2.9%
Revenue	2 459	33	-459	193	661	2 887	27.0%
Cost of gross sales	-1 291	-11	219	-81	-359	-1 522	-27.9%
Gross revenue	1 168	22	-240	112	302	1 364	26.0%
SG&A	-705	-40	132	-49	-192	-854	-26.2%
Other working revenue/(bills)	48	-4	-3	6	17	64	32.1%
Normalized EBIT	511	-22	-112	69	128	574	26.4%
Normalized EBITDA	716	-22	-148	76	172	795	25.0%
Normalized EBITDA margin	29.1%					27.5%	-41 bps

EMEA	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	22 124	24	–	–	1 576	23 724	7.1%
Revenue	2 136	-63	-272	–	310	2 110	14.9%
Cost of gross sales	– 984	-3	141	–	-219	-1 065	-22.1%
Gross revenue	1 152	-66	-132	–	91	1 045	8.4%
SG&A	-704	67	90	–	-79	-627	-12.3%
Other working revenue/(bills)	58	1	-7	–	-2	50	-4.1%
Normalized EBIT	506	1	-49	–	10	468	1.9%
Normalized EBITDA	754	-7	-83	–	79	744	10.6%
Normalized EBITDA margin	35.3%					35.3%	-135 bps
Asia Pacific	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	26 020	1	–	–	1 589	27 610	6.1%
Revenue	1 901	-27	-131	–	132	1 876	7.1%
Cost of gross sales	-825	-1	59	–	-121	-889	-14.7%
Gross revenue	1 076	-28	-72	–	11	987	1.1%
SG&A	-603	26	39	–	-11	-549	-1.9%
Other working revenue/(bills)	28	–	-2	–	10	36	35.0%
Normalized EBIT	500	-2	-35	–	10	474	1.9%
Normalized EBITDA	673	-2	-45	–	11	638	1.7%
Normalized EBITDA margin	35.4%					34.0%	-180 bps
Global Export and Holding Companies	3Q21	Scope	Currency Translation	Hyperinflation restatement	Organic Growth	3Q22	Organic Growth
Total volumes (thousand hls)	360	-150	–	–	8	217	3.7%
Revenue	272	-47	-16	–	-7	202	-3.2%
Cost of gross sales	-196	14	8	–	-14	-189	-7.9%
Gross revenue	76	-33	-8	–	-22	14	-50.2%
SG&A	-418	76	27	–	19	-296	5.3%
Other working revenue/(bills)	7	–	–	–	5	12	64.3%
Normalized EBIT	-334	43	19	–	2	-270	0.7%
Normalized EBITDA	-245	43	10	–	12	-181	5.3%

Annex 2

 

AB InBev Worldwide	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	432 027	–	–	14 331	446 358	3.3%
of which AB InBev personal beer	378 989	– 7	–	10 506	389 488	2.8%
Revenue	40 106	-346	-1 215	4 573	43 118	11.5%
Cost of gross sales	-17 001	6	573	-3 222	-19 644	-19.0%
Gross revenue	23 105	-340	-641	1 351	23 475	5.9%
SG&A	-12 950	324	433	-771	-12 963	-6.1%
Other working revenue/(bills)	633	-19	-8	42	648	9.9%
Normalized EBIT	10 788	-35	-216	622	11 160	5.9%
Normalized EBITDA	14 327	-56	-361	986	14 896	7.0%
Normalized EBITDA margin	35.7%				34.5%	-143 bps
North America	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	81 389	1	–	-2 166	79 223	-2.7%
Revenue	12 382	–	-40	293	12 634	2.4%
Cost of gross sales	-4 705	-8	15	-450	-5 149	-9.6%
Gross revenue	7 677	-8	-26	-158	7 486	-2.1%
SG&A	-3 539	-24	15	126	-3 421	3.6%
Other working revenue/(bills)	31	9	–	-6	34	-15.6%
Normalized EBIT	4 169	-23	-11	-38	4 098	-0.9%
Normalized EBITDA	4 756	-21	-13	-62	4 660	-1.3%
Normalized EBITDA margin	38.4%				36.9%	-137 bps
Middle Americas	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	103 570	41	–	5 727	109 338	5.5%
Revenue	9 057	-40	-173	1 424	10 267	15.8%
Cost of gross sales	-3 171	15	67	-930	-4 020	-29.5%
Gross revenue	5 885	-25	-106	493	6 248	8.4%
SG&A	-2 336	18	40	-234	-2 511	-10.1%
Other working revenue/(bills)	9	–	1	-19	-9	–
Normalized EBIT	3 558	-6	-65	240	3 728	6.8%
Normalized EBITDA	4 397	-6	-76	377	4 691	8.6%
Normalized EBITDA margin	48.5%				45.7%	-303 bps
South America	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	111 327	257	–	5 875	117 459	5.3%
Revenue	6 605	85	-259	1 789	8 220	27.1%
Cost of gross sales	-3 382	-23	123	-1 034	-4 315	-30.6%
Gross revenue	3 223	62	-135	755	3 905	23.3%
SG&A	-1 960	-100	72	-476	-2 463	-23.4%
Other working revenue/(bills)	336	-29	3	67	376	55.8%
Normalized EBIT	1 599	-67	-60	345	1 818	26.2%
Normalized EBITDA	2 163	-67	-89	454	2 461	24.1%
Normalized EBITDA margin	32.7%				29.9%	-64 bps

EMEA	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	62 665	53	–	3 968	66 686	6.3%
Revenue	5 899	-188	-519	858	6 050	15.0%
Cost of gross sales	-2 781	-8	264	-542	-3 066	-19.4%
Gross revenue	3 118	-196	-254	316	2 984	10.8%
SG&A	-2 200	194	186	-149	-1 968	-7.4%
Other working revenue/(bills)	151	2	-13	-2	138	-1.3%
Normalized EBIT	1 069	–	-81	166	1 154	15.5%
Normalized EBITDA	1 815	-24	-147	293	1 936	16.4%
Normalized EBITDA margin	30.8%				32.0%	36 bps
Asia Pacific	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	72 101	2	–	891	72 995	1.2%
Revenue	5 401	-81	-193	220	5 347	4.1%
Cost of gross sales	-2 381	-1	85	-247	-2 544	-10.4%
Gross revenue	3 020	-82	-108	-27	2 803	-0.9%
SG&A	-1 729	79	61	41	-1 548	2.5%
Other working revenue/(bills)	91	–	-2	13	103	14.1%
Normalized EBIT	1 382	-3	-48	27	1 358	1.9%
Normalized EBITDA	1 915	-3	-62	20	1 870	1.1%
Normalized EBITDA margin	35.5%				35.0%	-106 bps
Global Export and Holding Companies	9M21	Scope	Currency Translation	Organic Growth	9M22	Organic Growth
Total volumes (thousand hls)	975	-354	–	36	657	5.8%
Revenue	763	-122	-30	-10	601	-1.6%
Cost of gross sales	-582	31	19	-19	-551	-3.4%
Gross revenue	182	-91	-11	-29	50	-32.0%
SG&A	-1 187	156	58	-79	-1 052	-7.5%
Other working revenue/(bills)	15	–	2	-10	7	–
Normalized EBIT	-990	65	49	-118	-995	-12.5%
Normalized EBITDA	-718	65	27	-96	-722	-14.4%

 

 

 

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