Core Insights - Anheuser-Busch has announced a $300 million commitment to create and sustain U.S. manufacturing jobs, with a significant investment of $15 million in its St. Louis Brewery [1][4] - The company aims to drive innovation and build a stronger future for American workers, veterans, and the manufacturing industry through this investment [2][4] - The recent passage of the American Beer Act in Missouri is expected to facilitate long-term economic growth and support for local jobs [2][4] Investment and Development - The investment in St. Louis includes funding for supply chain infrastructure to enhance the transportation of American-grown ingredients and iconic beers [4] - Anheuser-Busch's Technical Excellence Center in St. Louis has trained over 2,000 employees and will now open its doors to local trade schools, marking a significant collaboration with the National Association of Manufacturers' Manufacturing Institute [2][4] - Recent investments across various breweries include enhancements in production capacity and equipment updates, such as in Baldwinsville, NY, and improvements in transportation capabilities in Houston, TX [3][8] Workforce and Community Engagement - The company is expanding its digital credentialing system to help veterans translate their military experience into manufacturing skills, promoting career opportunities for veterans [4] - Anheuser-Busch has a long-standing commitment to supporting American farmers, military, veterans, and first responders, contributing to community welfare through initiatives like emergency drinking water donations [6][7]

Core Insights - Anheuser-Busch is investing over $300 million in U.S. facilities in 2025, with a specific $9 million investment in its Baldwinsville, NY brewery [1][2][5] - The investments are part of the Brewing Futures initiative aimed at creating and sustaining American manufacturing jobs [2][3] - Over the past five years, Anheuser-Busch has invested more than $2 billion in its manufacturing facilities across the U.S. [1][5] Investment Details - The $9 million investment in Baldwinsville will enhance operations and expand production capacity for both traditional beer and fast-growing Beyond Beer products [3][4] - The investment includes maintenance of brewery equipment and updates to refrigeration units [3] - Anheuser-Busch has made nearly $90 million in investments in the Baldwinsville brewery over the past five years [4] Economic Impact - Anheuser-Busch operates over 100 facilities nationwide and employs approximately 65,000 individuals [5] - The company has made over $1.6 billion in capital investments in New York State since 1983 [4] - The company sources over $700 million in high-quality ingredients from American farmers and has purchased more than $7 billion in goods and services from U.S. suppliers [7] Strategic Focus - The Brewing Futures initiative focuses on three key pillars: creating and sustaining manufacturing jobs, advancing technical skills training, and strengthening career opportunities for veterans [8] - Anheuser-Busch emphasizes its commitment to supporting the communities where its employees live and work [4][9]

Market Share & Growth - The company experienced one of its best quarters in years in the US [1] - The company's market share continues to accelerate, reaching an inflection point last year [1] - Mikabultra and Bush Light are leading the company's growth [1] - Michelob Ultra is the fastest-growing brand in the US [1] - Bush Light is the second fastest-growing brand in the US [1] - Michelob Ultra Zero (29 calories zero alcohol beer) and Bush Light Apple (seasonal beer) became the third fastest-growing brands in the US industry within a month [2] Innovation Impact - Innovations are hitting a sweet spot with consumers [1]

Financial Data and Key Metrics Changes - EBITDA increased by 6.5% with continued margin expansion [6][10] - Revenue per hectoliter growth accelerated by 4.9% [6] - Underlying EPS grew by 8.7% in U.S. Dollar terms and 17.4% in constant currency [10][25] - Free cash flow increased by $5 billion compared to last year [26] Business Line Data and Key Metrics Changes - Non-alcohol beer portfolio revenues increased by 33% [8] - In the U.S., volumes grew by low teens in spirits-based drinks, led by Cutwater and Neutrol [12] - In Brazil, revenue declined by 1.9% due to volume performance, while EBITDA increased by 5.3% [13] - In Europe, volumes were flat, but revenue and EBITDA grew by mid-single digits [14] Market Data and Key Metrics Changes - In China, revenue declined by 6.2% with underperformance in volumes [16] - In Mexico, volumes grew by low single digits, outperforming the industry [12] - Revenue increased in 70% of markets, with top and bottom line growth across four of five operating regions [11] Company Strategy and Development Direction - The company continues to invest in mega brands and platforms, with $3.6 billion spent on sales and marketing in the first half of the year [18] - Focus on premiumization and innovation to drive growth in the beer category [20] - The company aims to optimize its business through disciplined revenue management and operational efficiency [25] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth of the industry despite short-term volume challenges [37][90] - The company is focused on improving execution in China and leveraging opportunities in the off-premise channel [66] - Management anticipates a recovery in consumer confidence and purchasing power, which could positively impact volumes [56] Other Important Information - The company has a diversified geographic footprint, which has proven to be a strength in delivering consistent results [11] - The net debt to EBITDA ratio improved to 3.27 times, reflecting progress in deleveraging [27] Q&A Session Summary Question: Concerns about volume growth in fiscal 2025 - Management acknowledged the volume decline but emphasized confidence in long-term growth potential and the ability to navigate challenges [35][37] Question: Margin improvement sustainability - Management indicated that margin improvements are expected to be sustainable, driven by disciplined revenue management and operational efficiencies [39][40] Question: Key learnings from U.S. market performance - Management highlighted the importance of consistent long-term planning and investment in brands that align with consumer trends [46][48] Question: Consumer slowdown in Mexico and Brazil's volume decline - Management noted that while Mexico outperformed the industry, consumer confidence is lower than historical levels, impacting overall performance [55][56][68] Question: On-premise channel progress in China - Management reported that the on-premise channel remains weak, but there is growth in the off-premise channel, presenting opportunities for improvement [64][66] Question: Plans for category activation around FIFA 2026 - Management sees significant opportunities for category activation during major events like FIFA 2026 and the Winter Olympics, leveraging past experiences for better ROI [91][93]

Financial Data and Key Metrics Changes - EBITDA increased by 6.5% with continued margin expansion [7] - Revenue per hectoliter growth accelerated by 4.9% compared to last year [7] - Overall revenue increased by 3% this quarter versus last year [10] - Underlying EPS grew by 8.7% in U.S. Dollar terms and 17.4% in constant currency [10][25] - Free cash flow increased by $5 billion compared to last year [26] - Net debt to EBITDA ratio improved to 3.27 times from 3.42 times year over year [27] Business Line Data and Key Metrics Changes - Non-alcohol beer portfolio revenues increased by 33% [8] - In the U.S., Michelob Ultra and Busch Light were the top two volume share gainers in the industry [12] - In Brazil, revenue declined by 1.9% due to volume performance [13] - In Colombia, record high volumes drove high single-digit top and bottom line growth [13] - In Europe, volumes were flat, but revenue grew due to premiumization [14] Market Data and Key Metrics Changes - Volumes declined by 1.9% globally, impacted by soft industry performance in China and Brazil [9] - In China, revenue declined by 6.2% with underperformance in volumes [16] - Revenue increased in 70% of markets, with top and bottom line growth across four of five operating regions [11] Company Strategy and Development Direction - The company continues to invest in mega brands and platforms, with $3.6 billion invested in sales and marketing in the first half of the year [17] - Focus on premiumization and innovation to drive growth in the beer category [20] - The company aims to optimize its business and improve margins through disciplined revenue management and operational efficiency [25] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth of the industry despite short-term volume challenges [36] - The company expects to deliver on its 2025 outlook of 4% to 8% EBITDA growth [29] - Management highlighted the importance of consumer confidence and economic recovery in driving future growth [56] Other Important Information - The company is focusing on digital platforms to enhance consumer engagement and drive new consumption occasions [22] - The company is committed to increasing investments in mega brands and expanding its non-alcohol beer portfolio [21] Q&A Session Summary Question: Concerns about volume growth and long-term outlook - Management acknowledged the volume decline but emphasized the strength of their global footprint and consistent performance in other KPIs [36][37] Question: Margin improvement sustainability - Management indicated that margin improvements are expected to be sustainable, driven by operational efficiencies and disciplined cost management [39][40] Question: Key learnings from U.S. market performance - Management highlighted the importance of consistent long-term planning and strategic investments in brands to drive growth [46][47] Question: Consumer slowdown in Mexico and Brazil - Management noted that while there are challenges, underlying demand remains strong, and they are monitoring consumer confidence closely [54][56] Question: On-premise channel performance in China - Management reported that the on-premise channel remains weak, but there is growth in the off-premise channel, presenting opportunities for improvement [62] Question: Future marketing opportunities with FIFA 2026 - Management expressed optimism about leveraging major events like FIFA 2026 to drive category growth and brand momentum [88][90]

Financial Performance - The company experienced EBITDA growth of 6.5% in 2Q25[10] - EBITDA margin expanded by 116 bps[10, 11, 75] - Underlying USD EPS increased by 8.7%[10, 11] - H1 Free Cash Flow was up by $0.5 billion year-over-year[10, 81] Revenue and Volume - Revenue per hl accelerated by 4.9% in 2Q25[10, 11, 15] - Total revenue increased by 3.0% in 2Q25[11] - Total volumes decreased by 1.9% in 2Q25[11] Regional Performance - North America saw organic revenue growth of 2.2% and organic EBITDA growth of 4.5%[18, 21] - Middle Americas experienced organic revenue growth of 5.1% and organic EBITDA growth of 6.9%[18, 24] - South America's organic revenue grew by 3.6% and organic EBITDA by 7.2%[18, 28] - EMEA had organic revenue growth of 5.2% and organic EBITDA growth of 9.5%[18, 33] - Asia Pacific's revenue declined by 4.5% and organic EBITDA declined by 4.8%[18, 40] Brand and Innovation - No-alcohol beer revenue increased by 33%[10, 61] - BEES Marketplace GMV grew by 63% to $785 million[10, 66, 68] Debt and Outlook - Net finance costs are expected to be between $190 million and $220 million per quarter[93] - The average gross debt coupon is approximately 4%[93, 91]

Core Viewpoint - Anheuser-Busch announces a $300 million investment in U.S. manufacturing facilities, reinforcing its commitment to job creation and economic prosperity [1][5][12] Group 1: Investment and Economic Impact - The company has invested nearly $2 billion over the past five years and plans to invest an additional $300 million in 2025 [6][7] - This investment aims to create and sustain manufacturing jobs, enhance operations, and meet evolving consumer demand [7][12] Group 2: Workforce Development - Anheuser-Busch is expanding its Technical Excellence Center model, which has benefited over 1,200 employees since 2022, with a new facility in Columbus, OH [8][9] - The company is partnering with local trade schools to provide access to technical training for students and educators, thereby developing a talent pipeline for manufacturing careers [9][10] Group 3: Support for Veterans - Anheuser-Busch is leading the industry by adopting a new digital credentialing system to help veterans transition into manufacturing careers [10][11] - More than 10% of the company's workforce consists of veterans, with a nearly 100% retention rate [11]

Core Insights - Anheuser-Busch has produced its 100 millionth can of emergency drinking water, highlighting its commitment to disaster relief efforts since 1988 [1][4] - The company is investing over $6 million to enhance capabilities at its Fort Collins brewery, which will improve the production of both beer and emergency drinking water [3][4] Investment and Production - The $6 million investment aims to strengthen Anheuser-Busch's brewing and packaging capabilities, further supporting its disaster relief initiatives [3] - Anheuser-Busch's breweries in Fort Collins, Colorado, and Cartersville, Georgia, are dedicated to producing emergency drinking water year-round to ensure availability during disasters [4] Partnerships and Community Impact - Anheuser-Busch collaborates with the American Red Cross and the National Volunteer Fire Council (NVFC) to deliver emergency drinking water to communities in need [5][6] - The company plans to deliver 1.5 million cans of emergency drinking water to over 630 volunteer fire departments across 45 states as part of its annual campaign [5] Historical Context - Anheuser-Busch has paused beer production at all 12 of its U.S. breweries at various times to produce emergency drinking water, demonstrating its long-standing commitment to community support [4] - More than 10% of the 100 million cans produced have been distributed to fire departments, providing essential resources and cost savings for these organizations [6]