Anheuser-Busch InBev beats top-line and bottom-line estimates; reaffirms FY24 outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 08 2024
0mins
Source: SeekingAlpha
Anheuser-Busch InBev Q1 Financial Performance:
- Q1 Non-GAAP EPS of $0.75 beat expectations by $0.09.
- Revenue of $14.55B increased by 2.4% year-over-year, beating estimates by $180M.
- Normalized EBITDA rose by 5.4% to $4,987 million with a margin expansion of 90 bps to 34.3%.
- Total volumes declined by 0.6%, own beer volumes down by 1.3%, and non-beer volumes up by 3.5%.
2024 Outlook for Anheuser-Busch InBev:
- Expects EBITDA growth in line with medium-term outlook of 4-8%.
- Net finance costs projected to be $220 to $250 million per quarter.
- Anticipates an average gross debt coupon of around 4% in FY24.
- Predicts normalized effective tax rate (ETR) to be between 27% to 29% in FY24.
- Forecasts net capital expenditure between $4.0 and $4.5 billion in FY24.
Investor Sentiment on Anheuser-Busch InBev:
- Considered attractive due to valuation and strength of Michelob Ultra.
- Long-term recovery expected despite facing multiple headwinds.
- Viewed as a patient investor's opportunity amid challenges.
- North American headwinds believed to be bottoming out.
Analyst Views on BUD
Wall Street analysts forecast BUD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BUD is 75.00 USD with a low forecast of 75.00 USD and a high forecast of 75.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 69.660
Low
75.00
Averages
75.00
High
75.00
Current: 69.660
Low
75.00
Averages
75.00
High
75.00
About BUD
Anheuser-Busch Inbev SA is a Belgium-based company. The Company is primarily engaged in the manufacturing of beer. The Company operates through six segments: North America, Middle Americas, South America, EMEA, Asia Pacific, Global Export and Holding companies. The Company's brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck's, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company's soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
