BUD

• Overall Business Performance

  • The company maintained global business momentum to start 2026, delivering solid top and bottom-line results with an all-time record high Q1 EPS. Gained or maintained share in 75% of operating markets, and was the number one share gainer in total alcohol in the U.S.
  • Growth is driven by mega brands, non-alcohol beer, and the Beyond Beer portfolio, with 40% of total company revenue coming from double-digit growing premium, balanced choice, and Beyond Beer segments.

• Category & Strategic Pillar 1: Lead and Grow the Category

  • Global beer (plus Beyond Beer) gained 70 basis points of total alcohol share between 2025 and 2026, and has gained over 300 basis points of total alcohol share since 2019. Beer participation remains broadly stable, with a long runway for future growth supported by favorable demographics and economic expansion.
  • Corona grew revenue 16% outside Mexico and delivered double-digit volume growth across 32 markets, continuing to drive global premiumization. The non-alcohol beer segment, led by Coronacero globally and Michelob UltraZero in the U.S., outperformed industry with 27% revenue growth, with ~60% of volume coming from new consumers and new consumption occasions.

• Strategic Pillar 2: Digitize and Monetize the Ecosystem

  • The company leverages AI to drive commercial execution, reaching over 20 billion annualized AI-driven consumer touchpoints to improve revenue management and brand delivery.
  • The digital Biz marketplace and D2C platform continue to scale rapidly, with third-party GMV growing 55% YoY. The company is in early stages of commercializing third-party products on its D2C platforms, with positive early cash flow and profitability.

• Strategic Pillar 3: Optimize Business Operations

  • Disciplined resource allocation and overhead management offset transactional headwinds to maintain stable margins while increasing sales and marketing investment. Management expects long-term margin expansion from continued premiumization, disciplined revenue management, and an efficient operating model.
  • The balance sheet remains strong: no bonds mature in 2026, weighted average debt maturity is 13 years, and Moody's recently upgraded the company's credit rating from A3 to A2, providing strong capital allocation flexibility.
  • Management continues to invest in supply chain sustainability focused on agriculture, water stewardship, energy, and emissions reduction.

• Management reaffirms its full-year 2026 outlook for 4-8% EBITDA growth, maintaining the original guidance range provided prior to Q1.
• FIFA World Cup 2026 is expected to contribute 20 to 30 basis points of full-year global volume growth, with marketing and sales investment spread across Q2 and Q3, with heavier spending in Q2 for anticipation campaigns.
• COGS cost pressures are expected to be concentrated in H1 2026 (especially Q1), with pressures easing through H2 as hedging impacts play out. Pre-emptive revenue and cost management actions have been taken to balance full-year results, resulting in a more balanced full-year performance overall.
• Management expects price CPI (price per hectolitre) growth to remain resilient for the full year, aligned with the company's policy of pricing with inflation; if inflation accelerates, the company will adjust pricing plans accordingly. Mix benefits from premiumization and Beyond Beer growth are expected to continue compounding revenue growth through the year.

AB InBev reports overall Q1 2026 total beer volumes increased 1.2%, total revenue up 5.8%, underlying EPS up 20.8% to $0.97, and EBITDA up 5.3% with flat margins. Geographic segment performance:

1. North America (U.S.): STR volume grew from share gains in beer and Beyond Beer; Beyond Beer portfolio delivered high 60% revenue growth, led by Cutwater which grew triple-digit revenue and was the number one share gaining spirit brand.
2. Middle Americas: Mexico achieved record high Q1 volumes with high single-digit top-line and mid single-digit bottom-line growth; Colombia achieved record high volumes driving double-digit top and bottom-line growth; Brazil achieved record high beer volumes with double-digit bottom-line growth, led by premium/super premium brands that delivered low 20% volume growth.
3. Europe: Volumes grew low single digits, with market share gains and premiumization offsetting a soft industry to deliver both top and bottom-line growth.
4. South Africa: Record-high volumes drove mid-single-digit top-line growth, with premium/super premium brands growing volumes mid-20%.
5. APEC (China): Volumes declined 1.5% against a slightly growing industry, with early signs of improving performance after increased investment to rebuild momentum. By product portfolio: Mega brands net revenue grew 8.2%; non-alcohol beer portfolio delivered 27% revenue growth; the Biz digital marketplace grew total annualized GMV 15% to $14.6 billion, with third-party GMV growing 55% to $1.1 billion; the D2C platform served 12 million consumers and generated $139 million in revenue, with annualized third-party marketplace GMV of $160 million. 70% of total company EBITDA is generated from emerging and developing markets.

• In China, the company still needs to improve execution, expand in-home channel presence, and increase participation in fast-growing industry segments to rebuild full momentum after a period of weak performance.
• Recent energy price increases may lead to delayed inflationary pressure on consumers, with impacts expected to hit between 3-6 months, potentially creating new cost and demand headwinds for the company through the end of 2026 if inflation reaccelerates.
• Long-term category narratives suggesting stagnating global beer demand are countered by company results, but regional competitive pressures remain, especially in high-growth premium segments in markets like Brazil.
• All forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, as detailed in the company's 2025 20F annual report filed with the SEC.

Q: The portfolio now has stable core business and scaled, high-momentum growth segments. How does management view portfolio strategy from here, and what is the split between mix and traditional pricing levers for revenue per capita growth?

A: Management continues rebalancing the portfolio globally toward fast-growing segments to meet consumer demand, with over 40% of current revenue coming from double-digit growing premium, balanced choice, and Beyond Beer segments. Stronger portfolio mix and traditional revenue management levers work in combination, with mix being the primary driver of Q1 revenue growth.

Q: What changes from five years ago have driven the recent consistent strong results, and is this performance sustainable?

A: The biggest change is a long-term focus on investing for sustained growth rather than quarterly results, with consistent investment in the portfolio, mega brands, and digital capabilities. Digital transformation has enabled data-driven front-line decision making, and improved operational and commercial efficiency makes investment spending work harder, leading to consistent share gains and growing momentum that management expects to continue.

Q: How will consumer demand in the U.S. be impacted by recent higher gas prices, what is the expected Q2 STW/STR dynamic ahead of the FIFA World Cup, and how does the newly acquired Beatbox complement the existing Beyond Beer portfolio?

A: Inflationary pressure from higher energy costs will likely have a 3-6 month delayed impact on consumers, but conditions remain manageable at present and management is prepared to adjust to changing conditions. Historically, STW/STR mismatches in Q2 driven by summer demand will converge in the second half of the year, so no unusual inversion is expected. Beatbox is fully complementary to existing RTD brands like Cutwater, offering a non-carbonated option that serves different consumer occasions and profiles with no expected cannibalization, and will benefit from AB InBev's U.S. distribution scale.

Q: How much of U.S. Q1 growth comes from Beyond Beer, is the segment gross margin accretive, and can Cutwater sustain growth after a high 2025 base?

A: Beyond Beer is a key contributor to U.S. rebalancing, with the segment 10 years in development and currently all brands growing double digits or more with low household penetration leaving significant room for expansion. While gross margin percentage is lower than core beer due to smaller scale, Beyond Beer delivers 20-30% more profit per unit in absolute terms than premium beer, with margins improving as the segment gains operating leverage. Cutwater is the fastest growing and top share gaining spirit brand in the U.S., with strong unmet demand that management expects to sustain growth.

Q: What is the expected contribution of the FIFA World Cup to growth, how will SG&A investment be phased, and is current price mix growth resilient for the full year?

A: Historically, FIFA adds 20-30 basis points of full-year global volume, with heavier marketing investment in Q2 for anticipation campaigns and spending spread across both Q2 and Q3. Management's policy is to price with inflation, so if inflation reaccelerates, pricing will adjust accordingly, and structural mix gains from growth in premium and Beyond Beer are expected to continue supporting resilient revenue growth for the full year.