AB InBev Q2 Earnings Beat Estimates, Revenues Miss on Soft Volumes

Core Insights - Anheuser-Busch InBev SA/NV (AB InBev) reported second-quarter 2025 results with earnings per share (EPS) exceeding estimates and showing year-over-year improvement, while revenues declined and missed consensus estimates [1][2][3] Financial Performance - Underlying EPS was 98 cents, an increase of 8.7% year over year, driven by 10.2% EBIT growth and optimized net finance costs, surpassing the Zacks Consensus Estimate of 94 cents [2][6] - Revenues totaled $15 billion, missing the Zacks Consensus Estimate of $15.33 billion and reflecting a 2.1% year-over-year decline, although organic revenue grew by 3% across 70% of markets [3][4] - Revenue per hectoliter improved by 4.9% year over year, supported by revenue-management initiatives [4][6] Volume and Market Performance - Total organic volume decreased by 1.9%, with a 2.2% decline in own-beer volume, partially offset by a 0.3% increase in non-beer volume, primarily affected by soft market conditions in China and Brazil [4][6] - Excluding China and Brazil, volume increased by 0.7%, indicating strong momentum in other markets [7] Brand Performance - Megabrands, particularly Corona, contributed to a 5.6% revenue increase, with Corona seeing a 7.7% revenue rise outside of Mexico [6][7] - The Beyond Beer portfolio recorded a 6.4% revenue rise, driven by significant growth in brands like Cutwater and Nütrl in the U.S. [9] Cost Management - Cost of sales decreased by 3.1% to $6.6 billion, while SG&A expenses fell by 3.9% year over year to $4.6 billion [9][11] - Normalized EBITDA was $5.3 billion, nearly flat year over year, with an organic growth of 6.5% and an expanded EBITDA margin of 35.3% [11] Future Outlook - For 2025, AB InBev anticipates EBITDA growth of 4-8%, with projected net capital expenditure between $3.5 billion and $4 billion [13]