Anheuser-Busch InBev NV Q1 FY2025 earnings call

• Global business momentum continued with reliable growth, EBITDA at top end of outlook. - US portfolio building momentum, increasing brand investments. No-alcohol beer up 34%. BEERS marketplace GMV up 53%. - Volume decline due to calendar factors, but revenue up from brand strength. - Key regions: North America US gained market share; Middle Americas Mexico, Colombia did well; South America Brazil had record volumes; Europe premium brands strong; South Africa gained share; China industry improved but underperformed. - Strategic pillars: Leading and growing category with 50+ mega brands, Corona grew 11.2% outside Mexico, non-alcohol beer up 34%. Digitize and monetize ecosystem: BEES GMV $11.6B, up 10%, 32M orders; DTC digital platforms had 19.2M orders, revenue up 12%. Optimize business: EBITDA margins improved 218 basis points, EPS $0.81, up 7.1% in US dollars and 20.2% constant currency.

Global business had consistent growth. EBITDA grew 7.9% at top end of outlook range. In US, portfolio building momentum with brand investments. No-alcohol beer portfolio up 34% in revenue. BEERS marketplace GMV up 53% to $645M. Underlying US dollar EPS up 7%, constant currency up 20%. Volume declined 2.2% due to calendar factors, but revenue up 1.5% from brand strength and premiumization. Revenue increased in ~50% of markets. Middle Americas, South America, Africa, Europe had double-digit bottom line growth. In North America, US portfolio gained market share in beer and spirits-based RTDs. Middle Americas: Mexico had mid-single digit revenue growth, double-digit EBITDA growth; Colombia had record volumes and margin expansion. South America: Brazil had record volumes and margin expansion. Europe: Premium and super premium brands contributed 60% of revenue. South Africa: Gained share in beer and beyond beer. China: Industry improved sequentially but underperformed due to softness in key regions and on-trade channel.

• Maintained 2025 outlook of 4% to 8% EBITDA growth. - First quarter results position well to deliver on full-year outlook. - Looking ahead, summer and rest of year to activate category with mega brands and global platforms.

Q: Rob Ottenstein asked about US strategy, share gain sustainability, productivity programs, and investment in mature US market.

A: Michel Doukeris said US is key market with portfolio at inflection point, market share gain continuing, productivity improvements ongoing, and investment makes sense for long-term growth with momentum building and innovation pipeline.

Q: Sanjeet Aujla asked about China channel mix and volume growth outlook.

A: Michel Doukeris said China industry improving sequentially, on-trade weaker, off-trade better, and underlying volume momentum good with outlook for improvement in Q2 and rest of year.

Q: Simon Hales asked about broader consumer environment, US new launches like Michelob Ultra Zero.

A: Michel Doukeris said consumer sentiment monitored, behavior shows beer resilient, non-alcohol and innovations like Michelob Ultra Zero and Busch Light Apple driving growth. Fernando Tennenbaum added on outlook and cost leverage.

Q: Edward Mundy asked about category growth strategy nuance and P&L leverage.

A: Michel Doukeris explained balanced choices and innovation driving category growth, Fernando Tennenbaum talked about P&L leverage from CapEx and debt reduction.

Q: Sarah Simon asked about Mexico market and Europe San Miguel scope.

A: Michel Doukeris said Mexico consumer behavior normal, underlying trends positive; Fernando Tennenbaum explained Europe scope related to phasing and financial factors.

Q: Chris Pitcher asked about China off-trade focus and Argentina business.

A: Michel Doukeris said China off-trade growth possible with strong brands, Argentina business improving with macroeconomic recovery.

Q: Trevor Stirling asked about younger consumer trends in emerging markets.

A: Michel Doukeris said participation normalizing across regions with balanced choices portfolio catering to different tastes.

Q: Gen Cross asked about SG&A reduction in regions and finance costs.

A: Fernando Tennenbaum said SG&A optimization ongoing, finance costs reduced due to leverage reduction.

Q: Olivier Nicolai asked about US consumer weakness and margin improvement.

A: Fernando Tennenbaum talked about margin improvement tailwind and transactional cost dynamics; Michel Doukeris said US participation normal, portfolio well positioned.

Q: Mitch Collett asked about Beyond Beer growth.

A: Michel Doukeris said Beyond Beer growth due to portfolio streamlining, brand strength, and global rollouts of brands like Cutwater, Nutrl.