LEADING AMERICAN MANUFACTURER CONTINUES ONGOING INVESTMENTS ACROSS AMERICA, PART OF $300+ MILLION INVESTED IN U.S. FACILITIES IN 2025 BALDWINSVILLE, N.Y., Aug. 5, 2025 /PRNewswire/ -- Anheuser-Busch (NYSE: BUD), a leading American manufacturer and maker of Michelob ULTRA, Busch Light, Budweiser, Bud Light, and Stella Artois, today announced a new $9 million investment in its Baldwinsville, NY brewery. Over the last five years, Anheuser- Busch has invested more than $2 billion in its manufacturing facilities ...

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]

Core Insights - Anheuser-Busch InBev (AB InBev) announced a $17 million investment in its Houston brewery as part of its Brewing Futures program, which includes a total commitment of $300 million for facility investments across the U.S. by 2025 [1][9] - The investment aims to enhance brewing excellence and improve transportation capabilities, ensuring efficient product delivery throughout Texas, building on over $50 million already invested in the Houston site in the past three years [2][4] - AB InBev's Brewing Futures initiative focuses on creating a sustainable workforce, supporting job creation, and advancing opportunities for veterans in the manufacturing sector [3] Investment and Economic Impact - The Houston brewery has been a key operational hub for nearly 60 years, with AB InBev and its distributor partners investing over $2.3 billion in capital projects in Texas to date [4] - The company employs nearly 1,000 individuals across four facilities in Texas, significantly contributing to the local economy and the American brewing industry [4] - Nationally, AB InBev operates over 100 facilities and employs 65,000 Americans, having invested nearly $2 billion in facility upgrades over the past five years [5] Growth Strategy - AB InBev is experiencing strong revenue momentum driven by consumer demand for its diverse brand portfolio and strategic pricing initiatives [7] - The company is focusing on expanding its premium and super-premium beer offerings, with brands like Corona and Stella Artois performing well internationally [8] - AB InBev is also diversifying into new categories such as ready-to-drink beverages and hard seltzers, while enhancing its digital platforms for better customer engagement [10]

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]

Financial Data and Key Metrics Changes - In the full year 2024, total Budweiser APAC volumes decreased by 8.8% and revenue decreased by 7%, while revenue per hectoliter grew by 2% [18] - Normalized EBITDA decreased by 6.3%, but the normalized EBITDA margin increased by 21 basis points [18] - Cost of sales increased by 0.7% on a per hectoliter basis, driven by cost management initiatives and commodity tailwinds [19] Business Line Data and Key Metrics Changes - In China, volumes decreased by 11.8% in 2024, with revenue and revenue per hectoliter decreasing by 13% and 14% respectively [19] - In APAC East, volumes increased by 3.6% in the full year, with revenue and revenue per hectoliter increasing by 12% and 8.7% respectively [20] - In South Korea, total market share reached its highest level in over a decade, with significant growth in brands like Kas and Casa [14][19] Market Data and Key Metrics Changes - The business in China faced challenges due to weak consumer sentiment and a decline in on-premise channels [10] - In India, the net revenue of the premium and triple premium portfolio grew by almost 20% in both the fourth quarter and the full year [15] - The in-home channel's volume and revenue contribution increased, reflecting ongoing efforts to premiumize this channel [12] Company Strategy and Development Direction - The company is focused on market share growth in China, with a clear strategy to prioritize Budweiser and adapt to current consumption trends [11][32] - The geographic expansion strategy for the Budweiser brand remains on track, with distribution expanding from 220 cities to 235 cities in 2024 [11] - The company aims to leverage technology to enhance commercial capabilities and drive value creation [13] Management's Comments on Operating Environment and Future Outlook - Management noted a soft consumer environment in China, impacting overall beer market performance [26] - There is confidence in capturing a disproportionate share of category and profit growth in China, despite current challenges [36] - The company plans to continue focusing on premiumization and expanding its distribution network in the in-home channel [99] Other Important Information - The company announced a dividend of $750 million for the full year 2024, representing a 7% increase versus the prior year [21] - The number of carbon-neutral breweries in China doubled to six, with significant reductions in carbon emissions and water usage [16] Q&A Session Summary Question: Recent sales performance in China and inventory management - Management acknowledged a soft consumer environment impacting sales, with proactive inventory management contributing to volume decline [26][29] Question: Strategic focus in China post-management change - The top priority for 2025 is market share growth, with a focus on Budweiser and adapting to current consumption trends [32] Question: Balancing market share recovery with margin and premiumization - The company aims to prioritize market share growth while maintaining long-term margin goals through operational efficiencies and brand mix [45][46] Question: Premiumization strategy and consumer trends - The company has a strong activation plan for Budweiser and is focusing on health and wellness trends with innovations like Zero Sugar [51][52] Question: In-home penetration strategy and challenges - The in-home channel is crucial for growth, with strategies focused on distribution and leveraging partnerships to enhance market presence [99][100] Question: Long-term growth pillars and geographic expansion - Geographic expansion remains a key strategic pillar, with tailored strategies based on market maturity and consumer demand [104]