Anheuser-Busch InBev Reports Third Quarter 2024 Financial Results
Anheuser-Busch InBev (NYSE: BUD) has reported its financial results for the third quarter of 2024, showcasing a significant performance in several key metrics.
Key Financial Metrics
| Metric | 3Q24 | YoY Change | Consensus Estimates |
|---|---|---|---|
| Underlying Earnings per Share (EPS) | $0.98 | 14% | $0.89 |
The company's performance indicated strong gains in Underlying EPS, which rose by 14%, surpassing the consensus estimate of $0.89. This growth was driven by increases in market share in 60% of the markets, pricing strategies, and premiumization efforts.
Revenue Performance by Segment
| Segment | Revenue Growth |
|---|---|
| United States | 1.8% |
| Mexico | Flattish |
| Colombia | High-single digits |
| Brazil | 5.2% |
| Europe | Flattish |
| South Africa | Low-teens |
| China | -16.1% |
The revenue performance varied significantly across different regions. Brazil and South Africa posted strong growth, whereas China experienced a decline in revenue due to a soft industry environment. The diversified global footprint has been pivotal in mitigating challenges in specific markets.
Key Developments and Operational Highlights
- Announced a $2 billion share buyback program to be completed within the next 12 months.
- BEES digital platform captured $12.1 billion in gross merchandise value (GMV), a 14% increase versus 3Q23.
- BEES Marketplace's tremendous growth with GMV of $630 million, rising 51% compared to 3Q23.
Management Comments
Michel Doukeris, CEO of AB InBev, highlighted the company's strong execution of its strategy which led to a 7.1% EBITDA increase. He remains confident in the ability to deliver on the raised FY24 EBITDA growth outlook of 6-8%, leveraging consumer demand for megabrands.
Dividend and Share Repurchase Program
The Board has approved a $2 billion share repurchase plan, part of its strategic capital allocation to enhance shareholder value.
Forward Guidance
For 2024, the company anticipates EBITDA growth between 6-8% amidst expected inflationary pressures and macroeconomic factors.
Stock Price Movement
Post-earnings release, Anheuser-Busch InBev's stock observed a decline of approximately -1.79%, reflective of mixed investor sentiment.
This quarter encapsulates AB InBev's resilience and adaptability through its global segmentation approach, continuous strategic investments, and digitalization initiatives.
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