ABInBev(US:BUD)2024-05-08 17:40Financial Data and Key Metrics Changes - The company reported an underlying EPS of $0.75, reflecting a 16% increase compared to the previous year [6][19] - EBITDA grew by 5.4%, with a margin expansion of 90 basis points, aligning with the medium-term growth ambition [7][18] - Total revenue increased by 2.6%, while revenue per hectoliter rose by 3.3% due to revenue management initiatives [19] Business Line Data and Key Metrics Changes - The super-premium portfolio in South Africa achieved double-digit volume growth, driven by brands like Corona and Stella Cero [2] - In North America, the beer industry showed resilience, with dollar sales continuing to grow year-over-year [20] - The premium and super-premium brands in Colombia grew volumes by over 20%, led by Corona [21] Market Data and Key Metrics Changes - In China, total volumes declined by mid-single digits, but the premium portfolio, particularly Budweiser, continued to grow [22] - The company achieved record high first-quarter volumes in South Africa, outperforming the industry in both beer and total alcohol [2] - In Brazil, the company reported mid-single-digit top line growth and double-digit bottom line growth, with volumes increasing by 4.4% [50] Company Strategy and Development Direction - The company aims to lead and grow the category through a focused portfolio of megabrands, which are expected to drive the majority of growth [51] - The digital transformation is seen as a key opportunity for generating additional profitability and revenue streams [18] - The company is focused on optimizing its business and enhancing operational efficiencies to drive margin expansion [25][65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to activate the category through major events like the Olympics and Copa America [28] - The company remains disciplined in capital allocation, focusing on maximizing long-term value creation for shareholders [55][123] - Management noted that while there are challenges in certain markets, the long-term fundamentals remain strong, particularly in premiumization trends [76][136] Other Important Information - The company achieved a water use efficiency ratio of 2.55 hectoliters per hectoliter, progressing towards its 2025 sustainability goals [5] - The company completed a $1 billion share buyback program and executed an additional $200 million buyback from Altria [41] - The company generated approximately $11 billion in gross merchandising value through its digital platforms, marking a 23% year-over-year increase [23] Q&A Session All Questions and Answers Question: Is the data showing significant share gains on-premise for Michelob ULTRA accurate? - Management confirmed that Michelob ULTRA has reached an all-time high share and is gaining momentum, supported by strong activation plans for the summer [60][62] Question: How does the company view the current trading environment in April compared to Q1? - Management indicated that April volumes were slightly worse than Q1, but it is too early to call any deterioration, attributing some of the changes to the Easter shift [142] Question: What is the company's strategy regarding capital allocation and share repurchase activity? - Management emphasized a disciplined approach to capital allocation, focusing on maximizing shareholder value while continuing to evaluate opportunities for debt reduction and share buybacks [122][152]