AB InBev Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Earnings Per Share (EPS): Underlying EPS increased by 6% to $3.73, with a 9.4% increase in constant currency.

EBITDA Growth: Grew by 4.9%, with a margin expansion of 101 basis points.

Revenue: Increased by 2%, driven by a 4.4% rise in revenue per hectoliter.

Free Cash Flow: Solid generation allowed for a 15% increase in dividends and a $6 billion share buyback program.

Debt Management: Reduced net debt by $2.7 billion, achieving a leverage ratio of 2.87x.

2Strategic Updates and Business Highlights

Brand Performance: Mega brands and premium portfolio outperformed overall business growth, with Beyond Beer revenue up 23% and non-alcohol beer up 34%.

BEES Marketplace: Gross Merchandise Value (GMV) increased by 61% to $3.5 billion, highlighting strong growth in the third-party segment.

Market Share Gains: Notable share gains in the U.S. beer market, particularly with Michelob Ultra and Busch Light.

Geographic Performance: Revenue growth in 65% of markets; strong performance in North America, Mexico, and Brazil, while challenges persisted in China.

3Forward Guidance and Outlook

2026 EBITDA Growth: Expected to grow between 4% and 8% on an organic basis.

Capital Expenditures: Projected to be between $3.5 billion and $4 billion, with an emphasis on maintaining efficiency.

Dividend Policy: Proposed final dividend of EUR 1 per share, continuing a progressive dividend strategy.

4Bad News, Challenges, or Points of Concern

Volume Performance: Overall volumes were below potential, although there was improved momentum in December.

China Market: Revenue declined by low teens, with a need to adjust inventory and focus on off-trade channels to regain market share.

Competitive Pressures: High inflation in Brazil affected consumer spending, although weather normalization helped improve dynamics towards the end of the year.

5Notable Q&A Insights

Consumer Engagement: CEO Michel Doukeris emphasized the role of beer in social gatherings and the importance of marketing to enhance brand visibility.

U.S. Market Strategy: Doukeris discussed the successful turnaround in the U.S. market, focusing on consistent investment and brand portfolio rebalancing.

China's Recovery: There are signs of stabilization in the Chinese market, with improvements in Budweiser brand power and off-trade channel penetration.

Beyond Beer Growth: The company sees significant potential in the Beyond Beer segment, with plans for further innovation and market expansion.

Marketplace Profitability: The BEES Marketplace is expected to scale further, particularly in the higher-margin third-party segment. Overall, AB InBev demonstrated resilience in a challenging consumer environment, with strategic investments and brand strength positioning the company for future growth despite some ongoing challenges in key markets.