ABInBev(BUD)2025-03-12 20:08Financial 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 5,341 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 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]