Anheuser-Busch InBev SA/NV Q4 FY2025 earnings call

Michel Doukeris stated that AB InBev executed its strategy with discipline, delivering dollar-based EPS growth, margin expansion, and solid free cash flow. The company strengthened its operating model, enhanced portfolio brand power, and formed new long-term partnerships. Regionally, North America's business built momentum, Middle Americas showed positive growth, Europe had market share gains, and APAC underwent adjustments. The beer category has a long growth runway, with mega brands leading growth, accounting for 57% of total revenues. Non-alcohol beer and Beyond Beer portfolios grew, and BEES captured $53 billion in gross merchandising value, with Marketplace GMV at $3.5 billion. Investments in sales and marketing averaged over $7 billion per year since 2021, and innovations contributed 11% of total revenue in 2025.

In 2025, Beyond Beer revenue increased by 23%, non-alcohol beer revenue grew by 34%, and BEES Marketplace GMV surged 61% to reach $3.5 billion. In North America, the business gained share in beer and spirits, with Beyond Beer portfolio growth accelerating. In Middle Americas, Mexico saw mid-single-digit top and bottom-line growth, Colombia achieved double-digit EBITDA growth, and Brazil's momentum improved in the fourth quarter with premium and super premium beer brands gaining market share. In Europe, market share gains and premiumization offset a softer industry. In APAC, China's revenue declined by low teens, but market share trend improved in the fourth quarter.

AB InBev expects EBITDA to grow between 4% and 8% on an organic basis in 2026. Net CapEx is projected to be between $3.5 billion and $4 billion, and the normalized effective tax rate is expected to be between 26% and 28%.

Potential risks include a constrained consumer environment, unseasonal weather, currency fluctuations, and competitive dynamics that could impact financial performance.

Q: Last year beer was described as a passion point, this year as playing an important role in bringing people together. How to balance a message about moderate consumption?

A: Beer brings people together for celebration, and the company invests in platforms and brands to enable memorable moments. Beer helps people exchange ideas, socialize, and enjoy moments, which is an important aspect.

Q: More optimistic about 2026, how much is due to strategy vs cyclical factors?

A: 2025 was a complex year, but momentum reaccelerated in the fourth quarter. The strategy, including initiatives like balanced choices, premiumization, non-alcohol beer, Beyond Beer, and BEES marketplace, is working as planned, and the midterm outlook remains unchanged.

Q: What are the lessons from the US market turnaround and how to apply them to other markets?

A: Consistency is key. In the US, the team has been working consistently, investing, and rebalancing the portfolio. In China, the business was reorganized due to market changes, focusing on off-trade and inland distribution, with a focus on right focus, consistency, and investment.

Q: Update on China's commercial execution, specifically off-trade channel penetration?

A: The O2O channel is accelerating, but there is still room for improvement in off-premise distribution. The on-trade channel is relatively stable, and the industry showed relative stabilization last year.

Q: Brazil's momentum, including January performance?

A: Weather improved in Brazil, brands have strong demand, and the beginning of 2026 has been positive, with normal weather and strong brand demand.

Q: Outlook for Beyond Beer in the US and innovation pipeline?

A: Beyond Beer in the US is growing rapidly, with brands like Cutwater performing well. There is significant growth potential, with plans to expand via M&A and new brands.

Q: US margins and revenue management strategy?

A: Margins are managed via mix and revenue, with pricing in line with inflation. COGS is hedged, and the company invests to accelerate business momentum in the US.

Q: BEES marketplace scaling and profitability?

A: BEES marketplace is a growth opportunity, with the 3P part scaling fast and being more profitable, addressing underserved customers and CPGs' growth needs.

Q: Non-alcohol beer growth vs peers and RTDs export plans?

A: Non-alcohol beer growth is due to superior products, strong brands, and sponsorships. RTDs have global expansion plans, with Flying Fish expanding globally and Cutwater expanding to other markets.