AB InBev’s Q2 Result 2024 showcases a consistent strategy delivering double-digit EBITDA growth and margin expansion. The company reported a 25% increase in underlying EPS. “Our global momentum continued this quarter,” said CEO Michel Doukeris. Revenue grew by 2.7% in Q2 2024, driven by a 3.6% increase in revenue per hectoliter. Despite a 0.8% decline in total volume, normalized EBITDA increased by 10.2%, reaching 5,302 million USD with a margin expansion of 236 basis points.
Revenue and Volume Analysis
In Q2 2024, AB InBev’s Q2 Result 2024 showed revenue increased by 2.7%, with strong performance from megabrands like Corona, which grew 5.6% outside its home market. However, total volumes declined by 0.8%, with own beer volumes down by 1.3% and non-beer volumes up by 3.4%. This decline was primarily due to performance in China and Argentina, which offset growth in Middle Americas, South America, Europe, and Africa.
Strategic Priorities and Market Performance
AB InBev’s Q2 Result 2024 emphasized their three key strategic pillars: leading and growing the category, digitizing and monetizing the ecosystem, and optimizing the business. BEES, their B2B digital platform, saw significant engagement, with 70% of revenue coming through digital channels. In HY24, BEES captured 11.7 billion USD in gross merchandise value, reflecting a 20% increase.
Financial Performance and Outlook
The company reported a normalized EBITDA increase of 10.2% in Q2 2024, driven by production cost efficiencies and disciplined overhead management. AB InBev’s Q2 Result 2024 highlighted a 25% increase in underlying EPS to 0.90 USD. The net debt to normalized EBITDA ratio improved to 3.42x as of June 30, 2024. AB InBev expects EBITDA growth in line with their medium-term outlook of 4-8%.
Market-Specific Highlights
In the United States, AB InBev’s Q2 Result 2024 showed a revenue decline of 0.6%, but EBITDA grew by 17.5%, driven by productivity initiatives and premiumization. Mexico saw mid-single digit top-line growth and low-teens EBITDA growth, while Colombia reported mid-teens revenue growth and high-twenties EBITDA growth. Brazil achieved record high volumes with an 8.0% revenue increase and 28.0% EBITDA growth.
Sustainability and Future Prospects
AB InBev’s Q2 Result 2024 underscored their commitment to sustainability. The company reduced Scopes 1 and 2 emissions by approximately 4% from HY23 and improved their water use efficiency ratio. Looking forward, AB InBev remains focused on leveraging their global leadership and unique advantages to create long-term value and consistent growth.
Outlook for 2024
For the full year 2024, AB InBev’s Q2 Result 2024 expects EBITDA to grow in line with their medium-term outlook of 4-8%, reflecting current assessments of inflation and macroeconomic conditions. The company anticipates net finance costs to range between 220 to 250 million USD per quarter, with an average gross debt coupon of approximately 4%. They also project the effective tax rate (ETR) to be between 27% and 29%, and net capital expenditure to range between 4.0 and 4.5 billion USD.
Regional Insights
AB InBev’s Q2 Result 2024 highlighted key regional performances:
- United States: Despite a revenue decline of 0.6%, EBITDA grew by 17.5% due to productivity initiatives and premiumization.
- Mexico: Mid-single digit revenue growth and low-teens EBITDA growth driven by strong performance of core and above core portfolios.
- Colombia: Record high volumes with mid-teens revenue growth and high-twenties EBITDA growth, led by premium and super premium brands.
- Brazil: Record high volumes with 8.0% revenue increase and 28.0% EBITDA growth, driven by premium brands and digital initiatives.
- Europe: High-single digit bottom-line growth with margin recovery, led by premium and super premium portfolios.
- South Africa: Record high volumes with double-digit growth in both top-line and bottom-line metrics.
- China: Revenue declined by double digits due to a soft industry and adverse weather, but premiumization efforts continued.
Conclusion
AB InBev’s Q2 Result demonstrates the company’s resilience and strategic focus, delivering robust financial performance despite challenges in certain markets. Their continued investment in digital transformation, premiumization, and sustainability positions them well for future growth.