AB InBev (BUD) Tops on Q2 Earnings & Revenues on Robust Demand

Core Viewpoint - Anheuser-Busch InBev SA/NV (AB InBev) reported strong second-quarter 2024 results, with revenues and earnings exceeding expectations and showing year-over-year improvement, driven by robust consumer demand and a diversified market presence [1][2][3]. Financial Performance - The underlying EPS for Q2 2024 was 90 cents, a 25% increase from 72 cents in the same quarter last year, surpassing the Zacks Consensus Estimate of 84 cents [2]. - Revenues reached $15.3 billion, up 1.4% year-over-year, exceeding the Zacks Consensus Estimate of $15.2 billion, with organic revenue growth of 2.7% [3]. - The company achieved a 3.6% year-over-year improvement in revenue per hectoliter (hl) on an organic basis, although total organic volume declined by 0.8% [6]. Brand Performance - The megabrands, including Budweiser, Corona, Stella Artois, and Michelob Ultra, collectively grew by 3.3% year-over-year outside their home markets, with Corona leading at a 5.6% increase [7]. Digital Transformation - AB InBev's digital platforms, including BEES and Zé Delivery, contributed approximately 70% to revenues in Q2 2024, with BEES reaching 3.8 million monthly active users [8]. Cost and Expenses - The cost of sales decreased by 3.6% to $6.8 billion, while SG&A expenses rose by 2.3% to $4.8 billion [9]. - Normalized EBITDA was $5.3 billion, reflecting an 8% year-over-year increase, with an EBITDA margin expansion of 210 basis points to 34.6% [11]. Future Outlook - For 2024, AB InBev anticipates EBITDA growth of 4-8%, with net capital expenditures projected at $4-$4.5 billion, focusing on innovation and consumer-centric initiatives [13][14].