ABInBev(US:BUD)2025-10-30 14:02Financial Data and Key Metrics Changes - In Q3 2025, the company reported 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 mega brands [8][22] 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 [5][9] 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 [7][8] - 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 EUR 0.15 per share, reflecting confidence in long-term growth [7][22] - The company aims to enhance its execution in China and strengthen its route to market, particularly in the in-home channels [13][14] 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 that the FIFA World Cup in North America in 2026 will provide significant opportunities for growth [25][40] Other Important Information - The company reported strong free cash flow generation, which has increased capital allocation flexibility [6][22] - The partnership with Netflix was announced, aiming to create co-marketing campaigns and enhance consumer experiences [16] 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 [27][29] Question: Outlook for global beer volume growth - Management noted that the potential for category growth remains around 1% under normal conditions, with opportunities for expansion in developing markets [30][31] Question: Volume growth outlook 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 in 2026 - Management stated that they do not provide specific guidance on cost of goods sold but highlighted that hedging policies are in place to manage FX impacts [43][45] Question: Performance 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 [52][76] Question: Beyond beer category growth - Management indicated that beyond beer now represents around 2% of total volume and is growing rapidly, with higher profitability compared to traditional beer SKUs [81][82] Question: Gross margin performance - Management attributed gross margin performance to a strong brand portfolio and operational efficiencies, with ongoing opportunities for improvement [84][85]