AB InBev Bounces Back in Q1 2021 As Revenue Grew By 17.2%

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Anheuser-Busch InBev (AB InBev), the world’s largest brewer, said its revenue grew by 17.2% with revenue per hl growth of 3.7%, driven by ongoing premiumization and revenue management initiatives.

The company said the total volumes grew by 13.3%, with own beer up by 14.9% and non-beer up by 4.0% in which combined revenues of our global brands, Budweiser, Stella Artois and Corona, increased by 29.5% and by 46.4% outside their home markets.

Healthy revenue growth translated to an EBITDA increase of 14.2%. Positive brand mix and ongoing cost discipline were somewhat offset by anticipated pressures from transactional FX and commodity headwinds, channel and packaging mix, and an increase in our SG&A as a result of higher variable compensation accruals, which are recorded by a quarter at the zone level depending on operational performance.

Underlying profit (normalized profit attributable to equity holders of AB InBev excluding mark-to-market gains and losses linked to the hedging of our share-based payment programs and the impact of hyperinflation) was 1 099 million USD in 1Q21 compared to 1 015 million USD in 1Q20. Normalized profit attributable to equity holders of AB InBev was 1013 million USD in 1Q21 versus -845 million USD in 1Q20.

Underlying EPS (normalized EPS excluding mark-to-market gains and losses linked to the hedging of our share-based payment programs and the impact of hyperinflation) was 0.55 USD in 1Q21, an increase from 0.51 USD in 1Q20. Normalized EPS in 1Q21 was 0.51 USD, an increase from -0.42 USD in 1Q20.

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Africa outside of South Africa:

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Underlying consumer demand remains resilient in many of our markets, though the operating environment remains challenging due to ongoing COVID-19 related restrictions.

In Nigeria, Ab InBev delivered mid-single-digit beer volume growth, though growth was held back by supply chain constraints. The brewer also grew volumes in Mozambique and Zambia, although volumes were lower in Tanzania and Uganda.

Carlos Brito, CEO commented,

“Our business is off to a very strong start in 2021. We delivered top-line ahead of pre-pandemic levels, as beer volumes were up by 2.8% versus 1Q19 with healthy revenue per hl growth. EBITDA increased by 14.2% year-over-year, even in the context of ongoing COVID-19 related restrictions.

Today, we announced that I will be stepping down from AB InBev after 32 incredible years, effective July 1st when Michel Doukeris will succeed me as AB InBev’s next CEO. My proudest moments during these years have been to watch our people grow and our company develop.

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Together, we built the leading and most profitable global brewer, with the best brands, and more importantly, the best people. It has been a privilege and an honour to be part of this team of 164 000 inspirational colleagues around the world. I am very excited about the future of our business under Michel’s leadership and congratulate him on the appointment as CEO of this amazing company.”

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