AB-InBev reports first quarter results 2019

For the first quarter of 2019, AB-InBev reported a strong start to the new year. According to their management comments published in early May, revenue grew by 5.9 % driven by volume growth of 1.3 % (own beer +1.0 %, non-beer +4.9 %) and revenue per hl growth of 4.6 %. The top-line result was driven by healthy performances in several of the key markets, including Brazil, China, the US, Europe, Colombia and Nigeria, with especially strong volume growth from markets such as Brazil, Nigeria, Europe, Peru and Colombia.

This was partially offset by softer volume results in markets such as South Africa and Argentina, where the consumer remains under pressure due to challenging macroeconomic conditions. Furthermore, the results were held back by the later timing of the Easter holiday in markets for which this is an important consumption occasion, including the US, Mexico, Colombia, South Africa and Australia. Management expects this impact to normalize on a half year basis.

Brazil led the way in volume growth this quarter across all segments of the portfolio, with both its beer and non-beer businesses growing by double digits. The performance in the US was improved through an evolved commercial strategy focused on premiumization and innovation. Leveraging the momentum built throughout last year, top-line growth in 1Q19 was supported by the best market share trend performance in the past 25 quarters with an estimated market share decline of only 10 bps.

Globally, top-line and bottom line performance continues to benefit from positive brand mix driven by the growth of an unparalleled portfolio of premium brands. Global brands grew revenues by 8.5% and by 14.0% outside of their home markets, while High End Company grew revenues by 19.9 %.

EBITDA grew by 8.2 % in 1Q19 with margin expansion of 86 bps to 39.6 %. This was driven by operating leverage from the solid top-line result as well as favorable brand mix, ongoing cost discipline and continued synergies from the SAB combination, partially offset by significant commodity and transactional currency headwinds.

Good progress was made toward the 2025 sustainability goals launched in March 2018, reducing carbon emission across the value chain by 4.5% over the last year.

The full report including figures and tables is available from ab-inbev.com/investors.