Core Viewpoint - The research service "Asia Value & Moat Stocks" targets value investors looking for Asia-listed stocks that exhibit a significant disparity between market price and intrinsic value, focusing on deep value balance sheet bargains and wide moat stocks [1] Group 1: Investment Focus - The service emphasizes deep value balance sheet bargains, which include net cash stocks, net-nets, low price-to-book (P/B) stocks, and sum-of-the-parts discounts [1] - It also highlights wide moat stocks, which are characterized by strong earnings power at a discount, including high-quality businesses and hidden champions [1] Group 2: Market Emphasis - The primary focus of the investment ideas is on the Hong Kong market, providing a range of watch lists with monthly updates for investors [1]

Shares of Anheuser-Busch InBev SA/NV (BUD) , alias AB InBev, have been doing well for a while, thanks to its robust strategic measures. Over the past three months, BUD shares have gained 25%, comfortably outperforming the broader Consumer Staples sector and the Zacks Beverages - Alcohol industry’s growth of 15.3% and 5.5%, respectively. The stock also surpassed the S&P 500 index’s drop of 10.2% in the same period.BUD’s Growth Efforts Bode WellThe company’s relentless execution, investment in brands and acce ...

Anheuser-Busch InBev SA/NV (BUD) , alias AB InBev, has been doing well for a while, thanks to its robust strategic measures. The company’s pricing actions, continued premiumization and other revenue-management initiatives have been yielding.Over the past three months, BUD shares have gained 26.2%, comfortably outperforming the broader Consumer Staples sector and the Zacks Beverages - Alcohol industry’s growth of 3.3% and 0.5%, respectively. The stock also surpassed the S&P 500 index’s drop of 4.4% in the sa ...

Financial Performance - The company reported total revenue of USD 59.8 billion in 2024, with 27.9% (USD 16.7 billion) coming from its Brazilian subsidiary Ambev and 10.5% (USD 6.2 billion) from Budweiser APAC[80]. - The company recognized a non-cash impairment charge of USD 1,143 million related to its investment in the AB InBev Efes joint venture as of June 30, 2022[70]. - The ongoing conflict between Russia and Ukraine has adversely affected the company's financial performance and operations, leading to increased risks and potential disruptions[69]. - The company has experienced higher commodity and logistics costs in recent years, which may continue to impact its operations and profitability[86]. - Approximately 65% of the company's 2024 revenue is expected to come from developing markets, including countries like Brazil, China, and Mexico[119]. - The company faces potential negative impacts on operating income due to increased water costs and regulatory changes related to water usage[91]. - The beverage industry is experiencing increased competition and changing consumer preferences, which could lead to reduced margins and profitability[123]. - The company is subject to various tax regulations, including excise taxes, which can significantly impact revenue and profitability[137]. Risk Factors - The company is facing challenges in divesting its non-controlling interest in AB InBev Efes due to sanctions and restrictions imposed by various governments[72]. - The company is exposed to risks related to the availability and price of raw materials, which can be affected by geopolitical instability and inflationary pressures[85]. - The company’s ability to manage currency risks and commodity price fluctuations is critical, as derivative instruments may not provide complete protection over the medium to long term[87]. - The company’s operations are significantly impacted by energy price volatility, which can challenge profitability in certain markets[90]. - The company is exposed to risks associated with minority investments in developing markets, which may limit control over operations and compliance[106]. - The company faces significant financial risks in developing markets, including political instability, inflation, and currency devaluation, which could adversely affect its operating results[120]. - Continued volatility in operating currencies may decrease the company's net assets and impact its financial condition and operating results[121]. - The company is exposed to risks from negative publicity and regulatory changes regarding health concerns related to alcohol consumption, potentially impacting demand and profitability[129]. - Regulatory restrictions aimed at reducing the availability of alcohol products could materially affect the company's business and financial condition[130]. - Compliance with antitrust and competition laws poses risks, with potential regulatory scrutiny affecting operations in multiple jurisdictions[142]. Operational Challenges - The company relies on third-party suppliers for key raw materials, and disruptions in supply could adversely affect production and financial results[101]. - The consolidation of retailers may pressure the company to lower prices, potentially reducing profitability in key markets[100]. - The company has limited suppliers for certain packaging materials, increasing the risk of supply chain disruptions[105]. - The company must fulfill commitments related to previous acquisitions to maintain regulatory compliance, which may affect operations[118]. - The company may face challenges in identifying suitable acquisition targets due to regulatory and market limitations[114]. - The company’s marketing efforts may be constrained by regulations on advertising, which could reduce the value of its brands and related revenues[153]. - The company’s operations are subject to environmental regulations that could result in substantial liabilities, impacting its financial condition[163]. Sustainability and Compliance - The company has set a goal to achieve net zero emissions across its value chain by 2040, which requires ongoing investment and may expose it to reputational risks if not achieved[160]. - The company has committed to sustainability goals, including smart agriculture and water stewardship, which may require additional investments and compliance efforts[160]. - The company faces potential liability and costs associated with compliance with anti-corruption laws and regulations, which could impact its reputation and profitability[144]. - The company has been cited in ongoing investigations related to business partners managed by former government officials, which may affect its operations[146]. Employee Relations - The United States organization has approximately 5,300 hourly brewery workers represented predominantly by the International Brotherhood of Teamsters, with collective bargaining agreements effective from March 1, 2024, to February 28, 2029[168]. - Approximately 1,300 hourly employees at certain company-owned distributorships and packaging plants are also represented by unions, which could impact production due to potential work stoppages or slowdowns[168]. - The company emphasizes the importance of recruiting and retaining skilled employees to support product development and marketing efforts[178]. Cybersecurity and Data Protection - Cybersecurity incidents and disruptions to information systems could lead to revenue loss, additional costs, and regulatory scrutiny, highlighting the importance of robust cybersecurity measures[169][170]. - The company has experienced several cybersecurity incidents in 2024, but none had a material impact on business operations or data security[174]. - The company is subject to various privacy and data protection laws, including the General Data Protection Regulation in the EU and the California Consumer Privacy Act, which may require costly changes to business practices[175][176]. - The company faces risks from natural disasters and public health crises, which could disrupt operations and negatively impact financial results[177]. Shareholder Considerations - The market price of the company's Ordinary Shares and ADSs may be volatile due to various factors, including financial performance expectations and market conditions[181][182]. - The company may not guarantee future dividend payments, as these will depend on business outlook, cash flow, and financial performance, particularly in light of increased debt from the SAB combination[187]. - Future equity issuances may dilute the holdings of current shareholders or ADS holders, potentially affecting the market price of Ordinary Shares or ADSs[190]. - Registration and sales of Ordinary Shares could increase the number of shares sold in the public market, adversely affecting the market price and increasing volatility[193]. - Investors may experience dilution if they cannot participate in equity offerings, and certain shareholders may not be entitled to exercise rights unless registered under relevant laws[194]. - ADS holders may not be able to exercise their voting rights unless they withdraw the underlying Ordinary Shares[196]. - The company is a Belgian public limited liability company, and shareholders may not enjoy certain rights and protections typically afforded to U.S. company shareholders[200]. - As a "foreign private issuer," the company is exempt from certain U.S. securities laws, resulting in less publicly available information compared to U.S. public companies[204]. - It may be difficult for investors outside Belgium to serve process on or enforce foreign judgments against the company due to the location of assets and non-resident board members[205].

Financial Performance - Total revenue for FY24 reached 59,768 million USD, a 2.7% increase year-over-year, with revenue per hectoliter growth of 4.3%[2] - Underlying profit for FY24 was 7,061 million USD, up from 6,158 million USD in FY23, reflecting a strong performance despite non-underlying items[5] - Normalized EBITDA increased by 8.2% to 20,958 million USD in FY24, with a normalized EBITDA margin expansion of 179 basis points to 35.1%[4] - Revenue for FY24 increased by 2.7% to 59,768 million USD, with a gross profit of 33,024 million USD, reflecting a gross margin of 55.3%[32] - Profit attributable to equity holders of AB InBev for FY24 was $5,855 million, up from $5,341 million in FY23[56] - The profit for the period increased from 6,891 million USD in FY23 to 7,416 million USD in FY24, reflecting a growth of approximately 7.6%[61] Cash Flow and Debt Management - The company achieved a free cash flow generation of 11.3 billion USD in FY24, an increase of 2.5 billion USD compared to FY23[20] - Cash flow from operating activities rose to 15,055 million USD in FY24, up from 13,265 million USD in FY23, driven by higher profits and improved working capital management[62] - Free cash flow increased by 2,537 million USD to reach 11,320 million USD in FY24[61] - Net debt decreased to 60.6 billion USD as of December 31, 2024, down from 67.6 billion USD a year earlier, resulting in a net debt to normalized EBITDA ratio of 2.89x[63] - Total liquidity as of December 31, 2024, was 21.5 billion USD, consisting of 10.1 billion USD in committed long-term credit facilities and 11.4 billion USD in cash and short-term investments[65] Investments and Capital Expenditures - The company invested 7.2 billion USD in sales and marketing in FY24 to support its megabrands and platforms, contributing to a 4.6% revenue increase from these brands[16] - Cash outflow from investing activities decreased to 3,259 million USD in FY24 from 4,390 million USD in FY23, primarily due to lower capital expenditures[62] - The company allocated approximately 44% of FY24 capital expenditures to production facilities, 40% to logistics and commercial investments, and 16% to administrative improvements[62] Market Performance and Growth - BEES Marketplace generated 2.5 billion USD in gross merchandise value (GMV) in FY24, a 57% increase compared to FY23, with 36 million orders processed[11][22] - The Beyond Beer segment accounted for 2% of total revenue in FY24, with key brands like Cutwater and Nütrl showing double-digit growth[22] - The premium and super premium portfolio contributed approximately 57% of FY24 revenue, highlighting the company's focus on premiumization[39] - In Brazil, the above core beer brands delivered low-teens volume growth, driven by Budweiser and Corona[39] - In South Korea, revenue grew by low-teens in FY24, driven by high-single digit volume growth and revenue management initiatives[44] - In Canada, revenue grew by high-single digits in Q4 2024, with mid-single digit volume growth led by brands like Michelob Ultra and Corona[45] - In Nigeria, revenue grew by strong double-digits in both Q4 2024 and FY24, with beer volumes increasing by low-teens[45] Dividends and Shareholder Returns - The company proposed a full-year dividend of 1.00 EUR per share for FY24, representing a 22% increase from FY23, pending shareholder approval[21] - Dividends paid decreased from $3.01 billion in 2023 to $2.67 billion in 2024, a reduction of approximately 11.3%[79] Taxation and Regulatory Impact - The effective tax rate (ETR) for FY25 is expected to be between 26% and 28%[31] - The effective tax rate for FY24 was 31.1%, an increase from 25.2% in FY23, influenced by changes in tax legislation in Brazil[54] Operational Efficiency - The company is focusing on market expansion and new product development to drive future growth[75] - The company plans to enhance its operational efficiency through strategic initiatives and potential acquisitions[75]

Core Insights - Anheuser-Busch announced a new investment of $4.2 million in its Williamsburg brewery, building on a total of $2 billion invested over the past five years to support job creation and economic growth in local communities [1][4]. Investment Details - The latest investment aims to enhance brewing excellence and sustain good-paying manufacturing jobs in the American beer industry [2]. - Anheuser-Busch has made continuous investments in its Virginia facility, including a $6.5 million investment in 2024 [2]. Economic Impact - The Williamsburg brewery has been operational since 1972 and has received over $1.1 billion in capital investments in Virginia to date [3]. - Anheuser-Busch employs over 750 individuals across five facilities in Virginia, reinforcing its role as a key economic driver in the state [3]. - The company has invested nearly $2 billion in over 100 facilities across the U.S. in the last five years, contributing to the creation and sustainability of American manufacturing jobs [4]. Commitment to Local Communities - Anheuser-Busch emphasizes its commitment to quality products and local community contributions through its investments [4]. - The company sources 99% of the beers sold in the U.S. from domestic production, with 99% of ingredients coming from American farmers [4].

Core Insights - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions, highlighting the inherent risks involved in trading [3]. Group 1 - The analysis is intended solely for informational purposes and should not be interpreted as professional investment advice [3]. - There is a clear disclaimer regarding the lack of any stock, option, or derivative positions in the companies mentioned, indicating a neutral stance [2]. - The article expresses the author's personal opinions and does not reflect any business relationships with the companies discussed [2].

Core Insights - Anheuser-Busch InBev's stock experienced a significant increase following its quarterly earnings report, indicating a positive momentum for long-term shareholders [1] - The company reported a record annual revenue of $59.8 billion, surpassing the previous year's record of $59.4 billion, with a 2.5% year-over-year increase in fourth-quarter revenue [1][3] - Despite a slight decline in overall volume, revenue growth was attributed to increased sales of premium brands such as Corona, Michelob ULTRA, and Stella Artois [2][3] Revenue and Earnings Performance - Anheuser-Busch achieved a 4% increase in earnings per share (EPS) for the full year 2024, indicating strong pricing power despite lower overall volume [3] - The flagship Budweiser brand saw a remarkable 50% year-over-year volume increase in Brazil, showcasing regional strength [3] Market Trends and Consumer Behavior - The alcohol industry faces challenges from societal trends, including the impact of GLP-1 weight-loss drugs and a shift among Gen-Z consumers towards alcohol alternatives [5][6] - Despite these challenges, beer remains the preferred alcoholic beverage, holding 47.2% of the market share, with Anheuser-Busch expanding into no-alcohol and beyond beer categories [6] Valuation and Stock Performance - Anheuser-Busch's current forward price-to-earnings (P/E) ratio is around 17x, with a price-to-sales ratio of 1.7, reflecting valuations similar to those in 2020 [7] - The stock recently broke above its 200-day simple moving average, a bullish indicator, with a consensus price target of $64, approximately 5% below its 52-week high [8] Dividend and Shareholder Returns - In 2024, Anheuser-Busch raised its dividend by 42%, increasing from 62 cents to 81 cents per share, and management recommended a dividend of $1.00 per share, a 14% year-over-year increase [9][10] - The company's annual dividend payments constitute less than 33% of its annual free cash flow, indicating a strong cash position while also engaging in a $2 billion share buyback program [10]

Group 1 - The article emphasizes the importance of rational value investing, akin to the strategies employed by Warren Buffett [1] - It highlights the author's long-term experience in investment portfolio management and consulting, indicating a focus on thorough analysis [1] - The content is presented as opinion pieces, with a clear disclaimer that it does not constitute investment advice [3] Group 2 - The author has a beneficial long position in the shares of BUD, suggesting a personal investment interest in the company [2] - There is no compensation received for the article, indicating an independent perspective on the analysis provided [2] - The article does not reflect the views of Seeking Alpha as a whole, underscoring the individual nature of the opinions expressed [4]

FY & 4Q24 Results February 26, 2025 4 of top 10 Super Bowl ads Legal disclaimer Certain statements contained in this report that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the future filings of the Company with the competent securities regulators or other authorities, in press releases, and in oral and written statements made by or with the approval of t ...