ABInBev(US:BUD)2025-10-30 14:02Financial Data and Key Metrics Changes - In Q3 2025, the company experienced top-line growth of 0.9% and EBITDA growth of 3.3%, with margin expansion of 85 basis points [8][21] - Underlying EPS increased by 1% in U.S. dollars and 0.3% in constant currency, reaching $0.99 per share [21][22] - Revenue per hectoliter increased by 4.8%, driven by disciplined revenue management and a portfolio of premium brands [8][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][8] - In the U.S., the portfolio saw a revenue increase in the mid-40s, 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%, with volumes underperforming the industry due to a soft consumer environment [13] - In Brazil, revenue declined by 1.9% due to unseasonable weather and a softer consumer environment, but market share gains were achieved [11][12] Company Strategy and Development Direction - The company is focused on executing its strategic priorities, including investments in brands and innovations to drive market share gains [4][5] - A $6 billion share buyback program was approved, alongside an interim dividend of €0.15 per share, reflecting confidence in long-term growth [7][22] - The partnership with Netflix aims to create co-marketing campaigns and enhance consumer experiences, integrating beer with entertainment [16] 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][40] - The company anticipates a significant opportunity in 2026 with the FIFA World Cup in North America, which is expected to enhance brand visibility and consumer engagement [25][41] Other Important Information - The company is actively managing its debt portfolio, announcing the redemption of $2 billion of outstanding bonds [7][22] - The growth of the non-alcohol beer segment is seen as a key opportunity, with the portfolio growing by 27% [15][81] Q&A Session Summary Question: Thoughts on the $6 billion buyback program and its implications for capital allocation - Management indicated that the buyback program reflects improved balance sheet flexibility and is part of a disciplined capital allocation strategy [27][29] Question: Outlook for global beer volume growth - Management noted that the medium-term outlook for global beer is around 1% growth, with potential for further growth through beyond beer propositions [28][30] Question: Volume growth expectations for 2026 - Management expressed optimism for volume growth in 2026, particularly with the FIFA World Cup and improving consumer sentiment [40][41] Question: Impact of input costs and FX on 2026 - Management stated that while they do not provide specific guidance on costs, they hedge 12 months ahead and expect a more normalized environment in 2026 [43][45] Question: Performance in Latin America, particularly Brazil and Colombia - Management highlighted that while Brazil faced challenges due to weather, Colombia continued to show strong performance and volume growth [52][53] Question: Insights on the Champions League sponsorship and ROI - Management emphasized the importance of integrating brands with major events and cultural moments to enhance long-term brand positioning [62][63] Question: Success of Cutwater and its sustainability - Management noted that Cutwater has become a top 10 spirits brand in the U.S., driven by consistent brand building and strategic investments [66][67]