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1. Company Snapshot

1.a. Company Description

Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide.It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands.The company was founded in 1366 and is headquartered in Leuven, Belgium.

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1.b. Last Insights on ABI

Anheuser-Busch InBev's recent performance was negatively impacted by declining sales volumes in key markets, particularly China and Brazil. The company's second-quarter sales volumes fell 1.9%, with a sharp 9% drop in Brazil and a slowdown in China. Despite beating profit estimates, the company's revenue missed expectations. Weak demand, industry growth concerns, and rising uncertainties, including US tariffs, have pressured the brewer's volumes. Additionally, peers' disappointing results, such as Carlsberg's missed forecasts and warnings of a tough year, have contributed to the negative sentiment.

1.c. Company Highlights

2. AB InBev's Q3 2025 Earnings: A Mixed Bag

AB InBev's financial performance in Q3 2025 was marked by a mix of positive and negative trends. Revenue per hectoliter grew by 4.8%, driven by disciplined revenue management and premiumization. However, underlying EPS came in at $0.714, missing estimates of $1.02. EBITDA margins improved by 85 basis points, with expansion in four of the company's five operating regions. The company's diversified geographic footprint helped navigate the challenging environment, with profitable growth in the long term.

Publication Date: Nov -01

📋 Highlights
  • Revenue per hectoliter growth:: Achieved 4.8% growth despite headwinds in China and unseasonable weather in the Americas.
  • Cutwater spirits growth:: Mid-40s revenue increase, now one of the top 10 largest U.S. spirits brands.
  • EBITDA margin expansion:: Improved by 85 basis points, with margin growth in four of five operating regions.
  • Capital allocation:: $6 billion share buyback program announced, alongside a $2 billion bond redemption.
  • China revenue decline:: 15.2% drop due to soft consumer demand and weather, but plans to boost investments in mega brands.

Regional Highlights

The company's regional performance was varied, with North America continuing to show portfolio momentum, driven by increased investments in brands. Mexico also reported revenue growth, despite a softer consumer environment and unseasonable weather. In contrast, China saw a 15.2% revenue decline due to a soft consumer environment and unseasonable weather. However, the company is focused on increasing investments in mega brands and improving execution to drive growth.

Beyond Beer Segment

The Beyond Beer segment continues to be a growth driver, with revenue growing in the mid-40s, led by Cutwater, which is now one of the top 10 largest spirits brands in the US. The company sees a huge opportunity in this segment, with a large addressable market outside of the beer category. As Michel Doukeris mentioned, "the average price of Beyond Beer products is higher than equivalent beer products, and they have higher profitability per hectoliter per SKU."

Valuation Metrics

Looking at AB InBev's valuation metrics, the stock trades at a P/E Ratio of 17.19, EV/EBITDA of 9.97, and ROE of 8.45%. These metrics suggest that the market is pricing in moderate growth expectations. With analysts estimating revenue growth at 5.2% next year, the stock may be fairly valued. However, the company's commitment to organic growth, disciplined revenue management, and efficient operating models could potentially drive further upside.

Outlook

AB InBev's guidance for 2025 remains intact, with EBITDA growth expected to be within the 4% to 8% range. The company's diversified portfolio and geographic footprint position it well for long-term growth. While challenges persist in certain regions, the company's focus on premiumization, innovation, and cost management should help drive future growth.

3. NewsRoom

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Is AB InBev (ENXTBR:ABI) Undervalued After Its Recent Period of Steady but Muted Share Price Gains?

Dec -04

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Coors Plans to Spend More on Non-Alcoholic Beer As Drinking Habits Continue to Change. 'We Believe We Can Win Here'

Dec -02

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European Equities Traded in the US as American Depositary Receipts Rise in Monday Trading

Dec -01

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American Rebel Holdings, Inc. (NASDAQ: AREB) Adds C & C Distributors to Advance American Rebel Light Beer’s Distribution-First Growth Strategy in Arkansas

Dec -01

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European Equities Traded in the US as American Depositary Receipts Surge in Wednesday Trading

Nov -26

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Does AB InBev’s 3.6% Weekly Rise Signal Room for Growth in 2025?

Nov -26

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Can AB InBev's Premiumization and Digital Acceleration Aid Growth?

Nov -24

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Target, Amazon, and Home Depot face holiday sales boycott

Nov -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Beer Business

Expected Growth: 3.0%

Anheuser-Busch InBev's beer business growth is driven by 3.0% increase in global beer consumption, expansion in emerging markets, premiumization trend, and strategic acquisitions. The company's diversified portfolio, operational efficiency, and strong distribution network also contribute to its growth. Furthermore, innovative product offerings and marketing strategies enhance its market position.

Non-Beer Business (Soft Drinks and Other Business)

Expected Growth: 3.0%

The Non-Beer Business of Anheuser-Busch InBev, comprising Soft Drinks and Other Business, grew 3.0%. This growth was driven by increased demand for low- and no-calorie beverages, expansion into new markets, and successful product innovations, particularly in the soft drinks portfolio, contributing to the segment's positive performance.

7. Detailed Products

Budweiser

A classic American-style lager beer, brewed with a combination of barley malts and rice.

Bud Light

A light, crisp, and refreshing lager beer, brewed with a combination of barley malts and rice.

Stella Artois

A Belgian pilsner beer, brewed with a combination of Saaz and Styrian Golding hops.

Corona

A light, refreshing Mexican lager beer, brewed with a combination of barley malts and corn.

Modelo Especial

A Mexican pilsner beer, brewed with a combination of barley malts and corn.

Michelob Ultra

A low-carb, low-calorie lager beer, brewed with a combination of barley malts and rice.

Elysian

A craft beer brand offering a range of beer styles, including IPAs, stouts, and sours.

Golden Road

A craft beer brand offering a range of beer styles, including IPAs, lagers, and ales.

8. Anheuser-Busch InBev SA/NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Anheuser-Busch InBev SA/NV is moderate due to the presence of alternative beverages such as wine, spirits, and soft drinks. However, the company's strong brand portfolio and distribution network help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand recognition and customer loyalty. Additionally, the company's large scale of operations and diversified product portfolio make it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the company's dependence on a few large suppliers for raw materials such as barley, hops, and corn. However, the company's large scale of operations and long-term contracts with suppliers help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the brewing industry, including the need for significant capital investment and regulatory approvals. Additionally, the company's strong brand recognition and distribution network make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The intensity of rivalry in the brewing industry is high due to the presence of several large players, including Heineken, Carlsberg, and Molson Coors. The company faces intense competition in terms of pricing, product innovation, and marketing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.85%
Debt Cost 6.83%
Equity Weight 51.15%
Equity Cost 8.21%
WACC 7.53%
Leverage 95.50%

11. Quality Control: Anheuser-Busch InBev SA/NV passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Imperial Brands

A-Score: 7.7/10

Value: 5.8

Growth: 5.3

Quality: 6.3

Yield: 9.4

Momentum: 9.5

Volatility: 9.7

1-Year Total Return ->

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Coca-Cola Europacific Partners

A-Score: 6.0/10

Value: 3.6

Growth: 6.0

Quality: 5.0

Yield: 6.2

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Carlsberg

A-Score: 5.3/10

Value: 4.3

Growth: 4.8

Quality: 4.9

Yield: 5.6

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Heineken

A-Score: 5.1/10

Value: 7.1

Growth: 4.0

Quality: 3.2

Yield: 5.0

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Heineken

A-Score: 4.4/10

Value: 4.2

Growth: 4.2

Quality: 3.6

Yield: 3.8

Momentum: 2.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
AB InBev

A-Score: 4.4/10

Value: 6.4

Growth: 3.0

Quality: 6.1

Yield: 0.6

Momentum: 2.0

Volatility: 8.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

52.72$

Current Price

52.72$

Potential

-0.00%

Expected Cash-Flows