ABInBev(BUD) - 2025 Q4 - Annual Report

Financial Performance - Underlying EPS increased by 6.0% to 3.73 USD in FY25, with a constant currency increase of 9.4%[6] - Revenue for FY25 decreased by 0.8% to 59,320 million USD, impacted by unfavorable currency translation, while 4Q25 revenue increased by 4.8% to 15,555 million USD[2] - Normalized EBITDA for FY25 increased by 4.9% to 21,223 million USD, with a margin expansion of 101 bps to 35.8%[4] - Free cash flow generation reached 11.3 billion USD in FY25, reflecting solid financial performance[15] - Profit attributable to equity holders increased to $1,959 million in 4Q25 and $6,837 million in FY25, reflecting strong operational performance[60] - The profit for the period increased to 8,477 million USD in FY25 from 7,416 million USD in FY24, reflecting a growth of approximately 14.3%[65] - The effective tax rate improved to 24.3% in 4Q25 and 26.1% in FY25, down from 34.8% and 31.1% respectively in the previous year[54] Revenue and Volume Trends - Volumes declined by 2.3% in FY25, with beer volumes down by 2.6% and non-beer volumes down by 0.4%[3] - The total volumes for FY25 decreased by 2.3% to 561,100 thousand hls, with beer volumes declining by 2.6%[34] - In the United States, AB InBev gained market share in beer and spirits, driven by Michelob Ultra and Cutwater, with mid-single digit revenue growth in FY25[35] - In Mexico, revenue per hl increased by 2.0% in FY25, despite a revenue decline of 1.3%[36] - Colombia achieved record high volumes and margin expansion, resulting in double-digit bottom-line growth[37] - In Europe, revenue grew by high-single digits in FY25, with EBITDA increasing by low-teens and margin expansion driven by cost management[39] - In China, FY25 revenue declined by 11.3% due to an 8.6% drop in volumes, with a focus on rebuilding momentum and growth[42] - In other African markets, revenue grew by low-teens and volumes by low-single digits, with Mozambique and Zambia reaching their highest market share in five years[44] Cost and Expenses - Cash flow from operating activities decreased to 14,883 million USD in FY25 from 15,055 million USD in FY24, primarily due to working capital movements[68] - Cash outflow from financing activities increased to 11,450 million USD in FY25, driven by higher dividends and increased share buybacks compared to 9,854 million USD in FY24[68] - The company's SG&A expenses rose to $4,786 million in Q4 2025, marking a 1.2% increase from Q4 2024[81] - SG&A expenses are expected to decrease to $18.133 billion in FY25, reflecting a 0.7% reduction compared to FY24[83] Debt and Liquidity - The net debt to normalized EBITDA ratio improved to 2.87x as of December 31, 2025, down from 2.89x in the previous year[7] - Net debt increased to 60.9 billion USD as of December 31, 2025, with a net debt to normalized EBITDA ratio of 2.87x, compared to the optimal target of around 2x[66] - Total liquidity as of December 31, 2025, was 22.0 billion USD, consisting of 11.9 billion USD in cash and cash equivalents and 10.1 billion USD available under committed long-term credit facilities[68] Dividends and Shareholder Returns - A final dividend of 1.00 EUR per share has been proposed, representing a 15% increase compared to FY24[25] - The proposed final dividend for FY25 is 1.00 EUR per share, subject to shareholder approval, balancing capital allocation priorities and returning cash to shareholders[71] - Dividends paid increased significantly from $2,672 million in 2024 to $4,543 million in 2025, an increase of 70%[87] Future Outlook - The company expects EBITDA growth in FY26 to align with a medium-term outlook of 4-8%[33] - The company is focusing on market expansion and new product development to drive future growth[82]