ABInBev(US:BUD)2025-10-30 14:00Financial Data and Key Metrics Changes - In Q3 2025, the company achieved top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [7][21][25] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][25] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of mega brands [7][21] Business Line Data and Key Metrics Changes - The premium beer, non-alcohol beer, and beyond beer segments continued to outperform, with the quarterly GMV of the BIS marketplace reaching nearly $1 billion [5][6] - In the U.S., revenue growth in the mid-40s was led by Cutwater, which grew revenue in the triple digits [9] - Michelob Ultra became the number one brand in the industry by volume year to date, gaining market share in all 50 states [9][10] Market Data and Key Metrics Changes - Revenue increased in 70% of the company's markets, with bottom-line growth in four of five operating regions [8][21] - In China, revenue declined by 15.2% due to a soft consumer environment, with the company focusing on enhancing execution and route to market [13][14] - In Brazil, revenue declined by 1.9% driven by unseasonable weather, but market share gains and disciplined management offset the decline [11][12] Company Strategy and Development Direction - The company is focused on consistent execution of its strategy, investing in brand power and innovation to drive market share gains [5][6] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [6][24] - The company aims to leverage partnerships, such as with Netflix, to enhance brand visibility and consumer engagement [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds in China and unseasonable weather in the Americas but expressed confidence in the resilience of the strategy [4][5] - The outlook for the beer category remains positive, with expectations for industry volume growth as conditions normalize [12][41] - The company anticipates a strong performance in 2026, driven by events like the FIFA World Cup in North America [27][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [6][24] - The non-alcohol beer segment is seen as a key growth opportunity, with net revenue growing by 27% [16][86] Q&A Session Summary Question: Thoughts on the $6 billion buyback program - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [30][32] Question: Outlook for global beer volume growth - Management noted that the long-term potential for the beer category is around 1% growth, with opportunities for further growth through beyond beer propositions [34][35] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, citing reduced consumer pressure from lower inflation and the impact of the FIFA World Cup [41][42] Question: Impact of input costs in 2026 - Management did not provide specific guidance on input costs but indicated that hedging policies are in place to manage FX risks [45][47] Question: Consumer improvement in Brazil and Colombia - Management noted that while Brazil faced challenges due to weather, Colombia continued to show strong volume growth and market share gains [56][57] Question: Performance of Cutwater brand - Management highlighted Cutwater's significant growth, becoming one of the top 10 spirits brands in the U.S., and emphasized the brand's potential for further expansion [70][71]