BELGIUM – AB InBev, the world’s largest brewer, has reported a 2.7 percent year-over-year increase in revenue for the second quarter of 2024, reaching US$15.33 billion, up from US$15.12 billion in the previous year.
The company attributed this growth to strong performance in its digital platforms and key brands.
Approximately 70 percent of AB InBev’s revenue during the quarter was generated through its B2B digital platforms, with the BEES platform’s monthly active user base reaching 3.8 million.
In the megabrands category, combined revenues increased by 3.3 percent, led by Corona, which saw a 5.6 percent revenue growth outside of its home market.
However, the combined revenue of AB InBev’s global brands declined by 1.7 percent outside their home markets.
The overall above-core beer portfolio showed slight revenue growth, driven by Corona, global brands in South Africa, and the double-digit growth of Modelo in Mexico and Spaten in Brazil.
Normalized EBITDA increased by 10.2 percent to US$5.3 billion, with a normalized EBITDA margin expansion of 236 basis points to 34.6%.
“Our global momentum continued this quarter. The strength of our diversified footprint and consumer demand for our megabrands delivered another quarter of broad-based top-and bottom-line growth,” said Michel Doukeris, CEO of AB InBev.
“EBITDA grew by double digits, and the continued optimization of our business drove a 25% increase in Underlying EPS.”
Underlying profit rose to US$1.81 billion, up from US$1.45 billion in the previous year. Despite these gains, total volumes during the quarter experienced a 0.8 percent decline, with own beer volumes down by 1.3 percent and non-beer volumes up by 3.4 percent.
In Africa, revenue grew in aggregate by high single digits, driven by growth in Zambia, Uganda, and Tanzania.
South Africa saw low-teen revenue growth, with revenue per hectoliter growing by high single digits due to pricing actions and continued premiumization.
In Nigeria, total volumes recorded mid-teen growth, cycling a soft industry, with revenue growing by strong double digits ahead of industry estimates, driven by revenue management initiatives in a highly inflationary environment.
Looking ahead to 2024, AB InBev expects EBITDA growth in line with its medium-term outlook of 4-8 percent, reflecting the current assessment of inflation and other macroeconomic conditions.
Earlier, the company announced a US$7 million investment in its Fairfield brewery in California, aimed at infrastructure improvements, including roofing updates, equipment overhauls, new lighting, and structural repairs.
Additionally, AB InBev began production of its popular beer brand, Corona Extra, at its Hasseröder brewery in Germany. Corona Extra recently reclaimed the title of the world’s most valuable beer brand, with a brand value of US$1.4 billion.
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