Wrap Text
Anheuser-Busch InBev reports First Quarter 2016 Results
Anheuser-Busch InBev SA/NV
(Incorporated in the Kingdom of Belgium)
Register of Companies Number: 0417.497.106.
Euronext Brussels Share Code: ABI
Mexican Stock Exchange Share Code: ABI
NYSE ADS Code: BUD
JSE Share Code: ANB
ISIN: BE0003793107
(“AB InBev” or “the Company”)
The enclosed information constitutes regulated information as defined in the Belgian Royal Decree of 14 November 2007
regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.
Anheuser-Busch InBev reports First Quarter 2016 Results
Highlights
Except where otherwise stated, the comments below are based on organic figures and refer to 1Q16 versus the same
period of last year. For important notes and disclaimers please refer to page 14.
* Revenue: Revenue grew by 3.1% in the quarter, with revenue per hl growth of 4.9%. On a constant
geographic basis, revenue per hl grew by 5.2% driven by strong premium brand volumes
* Volume: Total volumes declined by 1.7%, with our own beer volumes down by 1.4%. The decline in
own beer volumes was driven by Brazil which, as expected, faced challenging macroeconomic
conditions and a difficult comparable, partly offset by strong results in Mexico
* Global Brands: Combined revenues of our three global brands, Corona, Stella Artois and Budweiser,
grew by 5.9%. This result was led by Corona with growth of over 22%, driven by Mexico, Chile, China
and the UK. Budweiser revenues grew by 0.6%, due to soft volumes in the US and China, partly offset
by good results in Brazil and Russia. Stella Artois revenues declined by approximately 2%, due to the
timing of shipments in the US
* Cost of Sales (CoS): CoS increased by 1.8% in 1Q16 and by 3.6% on a per hl basis. On a constant
geographic basis, CoS per hl increased by 4.0%
* EBITDA grew by 2.5% to 3 462 million USD, with top-line growth being partly offset by the timing of
investments behind our brands. EBITDA margin declined by 20 bps to 36.8%
* Net finance results: Net finance cost (excluding non-recurring net finance results) was 1 219 million
USD in 1Q16 compared to net finance income of 91 million USD in 1Q15. This variance was driven
primarily by an unfavorable mark-to-market adjustment of 138 million USD in 1Q16 linked to the
hedging of our share-based payment programs, compared to a gain of 757 million USD in 1Q15. Net
interest expense also increased by 273 million USD in the quarter, driven mainly by the net cost of the
pre-funding of the proposed combination with SABMiller plc (“SABMiller”)
* Income taxes: Income tax in 1Q16 was 338 million USD with a normalized effective tax rate (ETR) of
23.2%, compared to an income tax expense of 593 million USD in 1Q15 and a normalized ETR of
18.0%. The increase in the normalized ETR in 1Q16 was driven mainly by the swing in the mark-to-
market adjustment linked to the hedging of our share-based payment programs, and country mix
* Profit: Normalized profit attributable to equity holders of AB InBev was 844 million USD in 1Q16
compared to 2 294 million USD in 1Q15, with organic EBITDA growth more than offset by higher net
finance results and unfavorable currency translation
* Earnings per share: Normalized earnings per share (EPS) decreased to 0.51 USD in 1Q16 from 1.40
USD in 1Q15. However, the underlying 1Q16 result was flat with the same period last year, excluding
the mark-to-market adjustment linked to the hedging of our share based payment programs and the
net cost of the pre-funding of the proposed combination with SABMiller, as well as the impact of
unfavorable currency translation
* Proposed combination with SABMiller: We are making good progress towards obtaining the
necessary regulatory clearances for the proposed combination with SABMiller, and continue to expect
the transaction to close in the second half of 2016
Figure 1. Consolidated performance (million USD)
1Q15 1Q16 Organic
growth
Total Volumes (thousand hls) 107 363 104 868 -1.7%
AB InBev own beer 95 089 93 881 -1.4%
Non-beer volumes 11 474 10 259 -5.7%
Third party products 800 728 12.3%
Revenue 10 453 9 400 3.1%
Gross profit 6 253 5 622 3.9%
Gross margin 59.8% 59.8% 49 bp
Normalized EBITDA 3 967 3 462 2.5%
Normalized EBITDA margin 38.0% 36.8% -20 bp
Normalized EBIT 3 213 2 693 -0.6%
Normalized EBIT margin 30.7% 28.6% -110 bp
Profit attributable to equity holders of AB InBev 2 681 132
Normalized profit attributable to equity holders of AB 2 294 844
Earnings per share (USD) 1.63 0.08
Normalized earnings per share (USD) 1.40 0.51
Figure 2. Volumes (thousand hls)
1Q15 Scope Organic 1Q16 Organic growth
growth Total Own beer
Volume volume
North America 27 326 -119 -294 26 913 -1.1% -1.1%
Mexico 9 105 - 1 183 10 288 13.0% 12.9%
Latin America - North 31 282 151 -2 294 29 140 -7.3% -9.0%
Latin America - South 10 092 -575 -501 9 017 -5.3% -2.4%
Europe 8 296 -56 149 8 390 1.8% 2.5%
Asia Pacific 19 757 124 -89 19 792 -0.5% -0.5%
Global Export and Holding Companies 1 504 -196 21 1 330 1.6% 1.6%
AB InBev Worldwide 107 363 -670 -1 824 104 868 -1.7% -1.4%
MANAGEMENT COMMENTS
The first quarter of 2016 saw a strong volume performance in Mexico, as well as improving volume trends
in the US and Europe. However, our business in Brazil experienced one of its most challenging quarters in
many years, as anticipated.
Total revenues for the company grew by 3.1% in the quarter, with strong revenue per hl growth of 4.9%,
driven by our revenue management and premiumization initiatives. Total volumes declined by 1.7%, with
own beer volumes down 1.4%.
Looking at our top four markets:
(i) In the US, industry volumes grew by 0.7% in the quarter, with our own sales-to-retailers (STRs)
down by 0.3%, after adjustment for one extra selling day in 1Q16. Michelob Ultra and our high
end brands delivered strong growth, while Bud Light volume trends also improved during the
quarter
(ii) Mexico delivered strong volume growth of 13.0%, driven by good economic fundamentals, our
own commercial initiatives, the benefit of an earlier Easter compared to 2015, and a favorable
1Q15 comparable
(iii) Our beer volumes in Brazil declined by 10.0%, due to a tough comparable driven mainly by a
very challenging macroeconomic environment in comparison to the first quarter last year. This
weak start to the year was anticipated, and we are retaining our guidance for net revenues in
Brazil to grow by mid to high single digits in the full year. Our beer volume trends in April are
particularly encouraging, trending significantly better compared to the first quarter of this year
(iv) Industry volumes in China remain under pressure, declining by approximately 4% in the quarter.
However, our own volumes continue to perform ahead of the industry, declining by 1.1% in the
quarter, helped by our focus on the Core Plus, Premium and Super Premium segments
Total company EBITDA grew by 2.5% in the quarter, with top-line growth being partly offset by an
increase of 13.5% in sales and marketing investments. This additional investment behind our brands is
consistent with our FY16 guidance of an increase of high single to low double digits, weighted towards the
first half of the year.
Normalized earnings per share in 1Q16 was 0.51 USD, down from 1.40 USD in 1Q15. However, the
underlying 1Q16 result was flat with the same period last year, excluding the mark-to-market adjustment
linked to the hedging of our share based payment programs and the net cost of the pre-funding of the
proposed combination with SABMiller, as well as the impact of unfavorable currency translation
(Figure 16).
We expect the macroeconomic environment to remain challenging in a number of our markets. However,
we have solid plans in place to address these challenges, and remain cautiously optimistic for the rest of
the year. Consequently, we have not made any changes to our previous FY16 guidance.
Proposed combination with SABMiller
We are making good progress towards obtaining the necessary regulatory clearances for the proposed
combination with SABMiller.
As a reminder:
(i) In November last year, we announced an agreement with SABMiller’s board on the terms of a
recommended acquisition of the entire issued and to be issued share capital of SABMiller
(ii) At the same time, we announced an agreement with Molson Coors Brewing Company regarding
a complete divestiture of SABMiller’s interest in MillerCoors LLC in the US, as well as the global
Miller brand
(iii) In China, we have entered into an agreement to sell SABMiller’s interest in China Resources
Snow Breweries to China Resources Beer (Holdings) Co. Ltd
‘s
(iv) In Europe, we have accepted a binding offer from Asahi to acquire certain of SABMiller’s
European premium brands and their related businesses. We have also committed to dispose of
SABMiller’s Central and Eastern European assets
(v) In South Africa, we have announced an agreement with the South African Government on the
public interest conditions that will be recommended to the Competition Commission and
Competition Tribunal
(vi) We have launched a secondary listing of AB InBev on the Johannesburg Stock Exchange
(vii) We have substantially completed the pre-funding of the proposed transaction following a series
of bond issuances in the first quarter of 2016, and partially cancelled our commitments under
the Senior Acquisition Facilities
We continue to expect the transaction to close in the second half of 2016.
2016 OUTLOOK
Unless otherwise stated, the 2016 outlook refers to AB InBev on a standalone basis, and excludes the
impact of the proposed combination with SABMiller.
(i) Top-line:
* Total AB InBev: We expect revenue per hl to grow organically ahead of inflation, on a constant
geographic basis, as a result of our revenue management initiatives and continued
improvements in mix
* In the US: We expect industry volumes to continue to improve in FY16. We expect our own
sales-to-wholesalers (STWs) and sales-to-retailers (STRs) to converge on a full year basis. We
expect further improvement in our net revenue per hectoliter performance, supported by
favorable brand mix
* In Mexico: We expect another year of solid growth in industry volumes, driven by a favorable
macro environment and our own commercial initiatives
8 In Brazil: We expect the economy to remain challenging in FY16. We expect our own net
revenues to grow organically by mid to high single digits in FY16
* In China: We expect industry volumes to remain under pressure in FY16. We expect our own
volumes to perform better than the industry, driven by our premium and super premium brands
(ii) Cost of Sales: We expect CoS per hl to increase by mid-single digits on a constant geographic
basis, driven by unfavorable foreign exchange transactional impacts, and growth in our premium
brands.
(iii) Distribution expenses: We expect distribution expenses per hl to increase organically by high
single digits, driven by the growth in our premium brands, as well as an increase in own distribution
in Brazil, both of which we expect to be more than offset by the increase in net revenue.
(iv) Sales and Marketing investments: We expect sales and marketing investments to grow by high
single to low double digits, weighted towards the first half of the year, as we continue to invest
behind our brands and global platforms for the long term.
(v) Net Finance Costs: We expect the average rate of interest on net debt in FY16, excluding the
impact of the proposed combination with SABMiller, to be in the range of 3.5% to 4.0%. Net pension
interest expense and accretion expenses are expected to be approximately 30 and 85 million USD
per quarter, respectively. Other financial results will continue to be impacted by any gains and losses
related to the hedging of our share-based payment programs. The net cost of the pre-funding of the
SABMiller purchase price, resulting from the bond issuances in 1Q16, including the Euro bond issue
at the end of March, will be accounted for in net interest expense and is expected to amount to
approximately 450 million USD in a full quarter.
(vi) Effective Tax Rate: We expect the normalized ETR in FY16 to be in the range of 22% to 24%. We
expect the normalized ETR to be in the range of 23% to 25% in the period 2017-2018, and in the
range of 25% to 27% thereafter. Our normalized ETR guidance continues to exclude the impact of
any future gains and losses related to the hedging of our share-based payment programs. For the
avoidance of doubt, our guidance on normalized ETR excludes the impact of the proposed
combination with SABMiller, and the impact of the pre-funding of the purchase price for which no tax
deduction is expected to be reported.
(vii) Net Capital Expenditure: We expect net capital expenditure of approximately 4.0 billion USD in
FY16. This represents a reduction of approximately 300 million USD compared to FY15, driven by
favorable foreign exchange translation, which offsets increased investments in our consumer and
commercial initiatives and in capacity expansion.
(viii) Debt: Approximately one third of AB InBev’s gross debt is denominated in currencies other than the
US dollar, principally the Euro. Our optimal capital structure remains a net debt to EBITDA ratio of
around 2x. Following the completion of the combination with SABMiller, deleveraging to around this
level will be a priority.
BUSINESS REVIEW
United States
Key performance indicators
Figure 3. United States (million USD)
1Q15 1Q16 Organic
growth
Total volumes (thousand hls) 25 504 24 980 -1.2%
Revenue 3 256 3 202 0.0%
Normalized EBITDA 1 288 1 290 2.1%
Normalized EBITDA margin 39.6% 40.3% 82 bp
We estimate that industry STRs in the United States returned to growth in 1Q16, increasing by 0.7%,
after adjusting for one extra selling day in the quarter. Our own STRs were down 0.3%, leading to an
estimated decline in total market share of approximately 45 bps, a 20 bps improvement over the FY15
trend. Our sales to wholesalers (STWs) were down 1.2% in the quarter, due to planned adjustments to
wholesaler inventories in the normal course of business. We continue to expect our STRs and STWs to
converge on a full year basis.
Bud Light volume trends improved in the quarter, with some initial benefits from the new “Bud Light Party”
campaign that was launched during Super Bowl 50 in February. The launch of the brand’s refreshed visual
brand identity in April should provide further momentum. Bud Light STRs declined by just over 1% in the
quarter, with an estimated total market share loss of approximately 35 bps.
Our Budweiser marketing campaign, built around the brand’s quality and heritage credentials, continues to
resonate with consumers. Budweiser STRs declined by low single digits in the quarter, in line with FY15
trends, further extending the brand's best trends in over a decade. Market share was down approximately
25 bps, based on our estimates.
Our portfolio of Above Premium brands performed very well in 1Q16, gaining approximately 50 bps of total
market share in the quarter, based on our estimates. The strongest performance came from Michelob Ultra
with volumes up over 20%, continuing its double digit growth in recent quarters. Our other Above
Premium brands also performed well, led by Stella Artois and Goose Island. We continued to expand our
craft business in 1Q16, closing the Four Peaks and Breckenridge acquisitions and announcing the
acquisition of Devils Backbone Brewing Company. Our near beer portfolio also contributed to the share
trend improvement in the quarter due to positive initial results from our new brands, particularly Best
Damn.
We are also working more closely than ever with our wholesalers, as part of our “Winning Together”
platform. This continues to be one of our major priorities, focusing on increasing our engagement and
collaboration with our wholesaler partners. In 2016, we will continue to build on this success to drive our
relationship to a new level.
US beer-only revenue per hl grew by 1.3% in the quarter, driven primarily by our revenue management
initiatives. US EBITDA increased by 2.1% to 1 290 million USD in 1Q16, despite the timing of sales and
marketing investments which are weighted towards the first half of the year. EBITDA margin increased by
82 bps to 40.3%.
Mexico
Key performance indicators
Figure 4. Mexico (million USD)
1Q15 1Q16 Organic
growth
Total volumes (thousand hls) 9 105 10 288 13.0%
Revenue 893 854 16.3%
Normalized EBITDA 417 371 10.3%
Normalized EBITDA margin 46.8% 43.4% -237 bp
Mexico delivered strong results in the first quarter. Our own volumes increased by 13.0%, supported by a
favorable consumer environment and our own commercial initiatives. Our volumes also benefitted from an
earlier Easter compared to last year, and a favorable 1Q15 comparable when our volumes grew by only
2.1%. Highlights in the quarter included Corona’s 90th birthday celebrations, Victoria’s Mexican heritage
campaign leading to improved preference among young adults, and the Bud Light NFL program which
helped to drive double digit volume growth. We will continue to invest behind our brands and programs
which are helping to create new and exciting consumption occasions.
Beer revenue per hl grew by 2.7% in 1Q16, due to favorable brand mix, driven by the growth of Bud
Light, Stella Artois and the Rita’s, as well as our revenue management initiatives.
Mexico EBITDA increased by 10.3% to 371 million USD in the quarter, driven by the strong top-line result.
EBITDA margin declined by 237 bps to 43.4%, given the timing of our sales and marketing investments.
Brazil
Key performance indicators
Figure 5. Brazil (million USD)
1Q15 1Q16 Organic
growth
Total volumes (thousand hls) 29 295 26 808 -8.5%
Beer volumes 22 079 19 867 -10.0%
Non-beer volumes 7 215 6 941 -3.8%
Revenue 2 271 1 576 -4.0%
Normalized EBITDA 1 189 810 -5.8%
Normalized EBITDA margin 52.3% 51.4% -96 bp
Our Brazil business had its most challenging quarter in many years. Our total volumes were down 8.5% in
the quarter, with beer volumes declining by 10.0%. This decline was due to a tough comparable driven
mainly by a challenging macroeconomic environment in comparison to the first quarter last year. Volumes
were also impacted by an earlier Carnival holiday in 2016, which symbolizes the end of the peak summer
season for many consumers, and price increases to mitigate adjustments to state and federal taxes. We
experienced some estimated market share loss in the quarter, due to regional competitive dynamics, but
expect these share losses to be short term in nature. Our soft drinks volumes were down 3.8% due to
industry weakness.
Despite these headwinds, our premium and near beer brands, which now account for more than 10% of
our total beer volumes, collectively delivered double digit volume growth. This growth was led by
Budweiser, Stella Artois, Corona, Original and Skol Beats Senses.
Brazil beer revenue per hl increased by 6.0% in the quarter, reflecting our revenue management
initiatives, increased own distribution volumes and premium brand mix, partly offset by growth in our
returnable bottle mix. Growth of returnable bottles is an important component of our affordability strategy,
allowing us to achieve an attractive consumer price point, without negatively impacting profitability.
We continue to expect net revenues in Brazil to grow by mid to high single digits in FY16, with our
commercial focus being to maintain a healthy balance between volume and revenue per hl.
Brazil EBITDA declined by 5.8% in 1Q16 to 810 million USD, with a margin decrease of 96 bps to 51.4%.
This result was driven mainly by the decline in revenue, partly offset by efficiencies in cost of sales and
administrative expenses.
China
Key performance indicators
Figure 6. China (million USD)
1Q15 1Q16 Organic
growth
Total volumes (thousand hls) 16 793 16 630 -1.1%
Revenue 997 964 0.9%
Normalized EBITDA 259 260 3.8%
Normalized EBITDA margin 26.0% 27.0% 76 bp
We estimate that China beer industry volumes declined by approximately 4% in the quarter, due to
economic headwinds. Our own beer volumes faced a tough comparable, declining by 1.1% compared to a
growth of 4.7% in 1Q15. Our market share increased by approximately 45 bps, based on our estimates,
reaching an average of 19.0% in the quarter.
We continue to believe the Core Plus, Premium and Super Premium segments have the greatest long term
growth potential in the industry. Our brands in these segments represent more than 50% of our total
China volumes, and are well positioned, with strong brand health metrics.
Revenue per hl grew by 2.1% in the quarter, with the benefit of favorable brand mix being partly offset by
unfavorable regional mix driven by poor weather and industry weakness, particularly in the south and east
of the country.
China EBITDA grew by 3.8% and EBITDA margin improved by 76 bps to 27.0% in 1Q16.
Highlights from our other markets
Canada had another good quarter, with our beer volumes increasing by almost 1%, with a stable market
share, based on our estimates. Corona and Stella Artois delivered particularly strong results.
Our own beer volumes in Europe were up 2.5% in the quarter, with net revenue up 4.6%, driven mainly
by the growth of our premium brands, especially in France, Italy, the Netherlands, Russia and
Ukraine. In the UK, volumes of our own products grew by low single digits, driven by strong
performances from our Stella Artois and Corona activations. Own beer volumes in Belgium were down
mid-single digits, due to a soft industry and some estimated market share losses. In Germany, own beer
volumes also declined by mid-single digits, due to industry weakness and some share loss, although the
volumes of our focus brands grew in the quarter, driven by a strong Beck’s performance. Beer volumes in
Russia were flat in the quarter, driven by our premiumization initiatives.
Latin America South delivered solid financial results, despite pressure on beer volumes, mainly driven by
a weak consumer environment. Corona and MixxTail saw good growth, especially in Argentina.
In South Korea, beer volumes were up low single digits in the quarter, leading to an estimated market
share gain, driven by our successful “Cass Freshness” campaign and the performance of our premium
brand portfolio.
CONSOLIDATED INCOME STATEMENT
Figure 7. Consolidated income statement (million USD)
1Q15 1Q16 Organic
growth
Revenue 10 453 9 400 3.1%
Cost of sales -4 200 -3 778 -1.8%
Gross profit 6 253 5 622 3.9%
Distribution expenses -1 059 -939 -5.5%
Sales and marketing expenses -1 586 -1 598 -13.5%
Administrative expenses -645 -555 4.5%
Other operating income/(expenses) 250 163 -9.4%
Normalized profit from operations
(normalized EBIT) 3 213 2 693 -0.6%
Non-recurring items above EBIT -9 -34
Net finance income/(cost) 91 -1 219
Non-recurring net finance income/(cost) 395 - 684
Share of results of associates 1 1
Income tax expense -593 -338
Profit 3 098 419
Profit attributable to non-controlling interest 417 287
Profit attributable to equity holders of AB InBev 2 681 132
Normalized EBITDA 3 967 3 462 2.5%
Normalized profit attributable to equity
holders of AB InBev 2 294 844
Revenue
Consolidated revenue grew by 3.1% in 1Q16, with revenue per hl growth of 4.9%. This result was driven
by our revenue management and premiumization initiatives. On a constant geographic basis revenue per
hl grew by 5.2%.
Cost of Sales (CoS)
Total CoS increased by 1.8%, and by 3.6% on a per hl basis. This increase was driven primarily by
unfavorable foreign exchange transactional impacts, higher depreciation from recent investments, and
product mix. These increases were partly offset by procurement savings and efficiencies. On a constant
geographic basis, CoS per hl increased by 4.0%.
Distribution expenses
Distribution expenses grew by 5.5% and by 7.3% on a per hl basis. This increase compared to 1Q15 was
driven by increased own distribution in Brazil, which is more than offset by the increase in net revenues,
the growth of our premium and near beer brands, and inflationary increases in Latin America South.
Sales and marketing investments
Sales and marketing investments increased by 13.5%, driven by increased support for our brands, our
premiumization initiatives, and the expansion of the near beer category.
Administrative expenses
Administrative expenses decreased by 4.5% due mainly to timing of variable compensation accruals and
other efficiencies.
Other operating income
Other operating income declined by 9.4% due to lower government incentives related to our reduced
revenues in Brazil.
Non-recurring items above EBIT
Figure 8. Non-recurring items above EBIT (million USD)
1Q15 1Q16
Restructuring -18 -20
Acquisition costs / Business combinations - -18
Business and asset disposal 9 4
Impact on profit from operations -9 -34
Normalized profit from operations excludes negative non-recurring items of 34 million USD, primarily due
to restructuring and acquisition costs related to the proposed combination with SABMiller.
Net finance income/(cost)
Figure 9. Net finance income/(cost) (million USD)
1Q15 1Q16
Net interest expense - 408 - 681
Net interest on net defined benefit liabilities -30 - 29
Accretion expense -76 - 143
Other financial results 605 - 366
Net finance income/(cost) 91 -1 219
Net finance costs (excluding non-recurring net finance costs) were 1 219 million USD in 1Q16 compared
to an income of 91 million USD in 1Q15. This decrease was driven primarily by other financial results
which includes an unfavorable mark-to-market adjustment of 138 million USD in 1Q16, linked to the
hedging of our share-based payment programs, compared to a gain of 757 million USD in 1Q15. Net
interest expenses increased by 273 million USD mainly as a result of the issuance of bonds in January and
March 2016 in connection with the pre-funding of the SABMiller combination. Accretion expenses increased
by 67 million USD due to one-off interest charges on legal claims that became payable during 1Q16.
The number of shares covered by the hedging of our share-based payment programs, and the opening and
closing share prices, are shown in figure 10 below.
Figure 10. Share-based payment hedge
1Q15 1Q16
Share price at the start of the period (Euro) 93.86 114.40
Share price at the end of the period (Euro) 113.80 109.25
Number of derivative equity instruments at the
end of the period (millions) 35.4 37.7
Non-recurring net finance income/(cost)
Figure 11. Non-recurring net finance income/(cost) (million USD)
1Q15 1Q16
Mark-to-market (Grupo Modelo deferred share instrument) 395 -84
Mark-to-market (Portion of the FX hedging of the purchase price of
the proposed combination with SABMiller that does not qualify for -599
hedge accounting)
Other mark-to-market (Restricted shares and euro bonds) 125
Other - -126
Non-recurring net finance income/(cost) 395 -684
Non-recurring net finance costs were 684 million USD in 1Q16 compared to an income of 395 million
USD in 1Q15. Non-recurring net finance cost in 1Q16 includes a negative mark-to-market adjustment of
599 million USD related to the portion of the FX hedging of the purchase price of the proposed
combination with SABMiller that does not qualify for hedge accounting under IFRS rules.
Other mark-to-market adjustments were driven by derivative instruments entered into to hedge part of
the Restricted shares to be issued in relation to the proposed combination with SABMiller, as well as the
hedging, into US dollars, of the 13.25 billion Euro bonds issued on 29 March 2016 as part of the pre-
funding of the SABMiller purchase price.
The 1Q16 result also includes a mark-to-market loss of 84 million USD resulting from the derivative
instruments entered into to hedge the deferred share instrument issued in a transaction related to the
combination with Grupo Modelo. The deferred share instrument was hedged at an average price of
approximately 68 Euro per share. The number of shares covered by the hedging of the deferred share
instrument, and the opening and closing share prices, are shown in figure 12.
Other non-recurring net finance costs of 126 million USD relates to accelerated accretion expenses
following the cancellation, in January 2016, of 42.5 billion USD of the 2015 committed senior acquisition
facilities, as well as commitment fees for the facilities.
Figure 12. Deferred share instrument hedge
1Q15 1Q16
Share price at the start of the period (Euro) 93.86 114.40
Share price at the end of the period (Euro) 113.80 109.25
Number of derivative equity instruments at the
end of the period (millions) 23.1 23.1
Income tax expense
Figure 13. Income tax expense (million USD)
1Q15 1Q16
Income tax expense 593 338
Effective tax rate 16.1% 44.7%
Normalized effective tax rate 18.0% 23.2%
Income tax expense in 1Q16 was 338 million USD with a normalized effective tax rate (ETR) of 23.2%,
compared to an income tax expense of 593 million USD in 1Q15 and a normalized ETR of 18.0%. The
increase in the normalized ETR in 1Q16 is mainly due to the swing, between 1Q15 and 1Q16, in the mark-
to-market adjustment linked to the hedging of our share-based payment programs, and country mix.
The increase in the reported ETR from 16.1% in 1Q15 to 44.7% in 1Q16, is due to the unfavorable impact
on profit before tax, of the negative mark-to-market adjustment related to the hedging of the purchase
price of the proposed combination with SABMiller.
Profit attributable to non-controlling interest
Profit attributable to non-controlling interest decreased from 417 million USD in 1Q15 to
287 million USD in 1Q16, due to currency translation effects and the unfavorable operating performance of
Ambev in the first quarter.
Normalized Profit and Profit
Figure 14. Normalized Profit attribution to equity holders of AB InBev (million USD)
1Q15 1Q16
Profit attributable to equity holders of AB InBev 2 681 132
Non-recurring items, after taxes, attributable to equity holders
of AB InBev 8 28
Non-recurring finance (income)/cost, after taxes, attributable
to equity holders of AB InBev -395 684
Normalized profit attributable to equity holders of
AB InBev 2 294 844
Normalized profit attributable to equity holders of AB InBev decreased to 844 million USD in 1Q16 from
2 294 million USD in 1Q15, with organic EBITDA growth more than offset by higher net finance costs and
the impact of unfavorable currency translation.
Profit attributable to equity holders of AB InBev decreased to 132 million USD in 1Q16, compared to
2 681 million USD in 1Q15.
Normalized and Basic EPS
Figure 15. Earnings per share (USD)
1Q15 1Q16
Basic EPS 1.63 0.08
Non-recurring items, after taxes, attributable to equity holder of AB
InBev, per share - 0.01
Non-recurring finance (income)/cost, after taxes, attributable to
equity holders of AB InBev, per share -0.23 0.42
Normalized EPS 1.40 0.51
Normalized earnings per share (EPS) decreased to 0.51 USD in 1Q16 from 1.40 USD in 1Q15. However,
the underlying 1Q16 result was flat with the same period last year, excluding the impact of unfavorable
currency translation, the mark-to-market adjustment linked to the hedging of our share based
compensation programs and the net cost of the pre-funding of the SABMiller purchase price.
Figure 16. Reconcilation - Normalized Earnings per share in USD
1Q15 1Q16
Normalized EBIT attributable to equity holders of AB InBev 1 1.60 1.59
Income tax expense 1 -0.28 -0.21
Other1 -0.38 -0.45
Normalized EPS before currency translation, mark-to-market and
0.94 0.93
prefunding of the proposed combination with SABMiller
Year over Year currency translation -0.15
Net cost of the pre-funding of the SABMiller purchase price -0.19
Mark-to-market (Hedging of our share-based payment programs) 0.46 -0.08
Normalized EPS 1.40 0.51
1
5
at 201 fo reign exchange rate
Figure 17. Reconcilation - Basic Earnings per share in USD
1Q15 1Q16
EBIT attributable to equity holders of AB InBev 1 1.59 1.56
1
Income tax expense -0.28 -0.21
Other1 -0.38 -0.43
Basic EPS before currency translation, mark-to-market and 0.93 0.92
prefunding of the proposed combination with SABMiller
Year over Year currency translation -0.14
Net cost of the pre-funding of the SABMiller purchase price -0.19
Mark-to-market (Hedging of our share-based payment programs) 0.46 -0.08
Mark-to-market (Grupo Modelo deferred share instrument) 0.24 -0.05
Mark-to-market (Portion of the FX hedging of the purchase price of the
proposed combination with SABMiller that does not qualify for hedge -0.37
accounting)
Other mark-to-market (derivative instruments entered into to hedge part of
the Restricted shares to be issued as well as the hedging, into USD, of the 0.08
13.25 billion euro bonds, issued in March)
Accelerated accretion expenses following the cancellation, in January 2016,
of 42.5 billion USD of the 2015 committed senior acquisition facilities and -0.08
commitment fees
Acquisition costs / Business combinations -0.01
Basic EPS 1.63 0.08
1
5
at 201 fo reign exchange rate
Reconciliation between profit attributable to equity holders and normalized EBITDA
Figure 18. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB
InBev (million USD)
1Q15 1Q16
Profit attributable to equity holders of AB InBev 2 681 132
Non-controlling interests 417 287
Profit 3 098 419
Income tax expense 593 338
Share of result of associates -1 -1
Net finance (income)/cost - 91 1 219
Non-recurring net finance (income)/cost -395 684
Non-recurring items above EBIT (incl. non-recurring impairment) 9 34
Normalized EBIT 3 213 2 693
Depreciation, amortization and impairment 754 769
Normalized EBITDA 3 967 3 462
Normalized EBITDA and normalized EBIT are measures utilized by AB InBev to demonstrate the company’s
underlying performance.
Normalized EBITDA is calculated excluding the following effects from profit attributable to equity holders of
AB InBev: (i) non-controlling interest; (ii) income tax expense; (iii) share of results of associates; (iv) net
finance cost; (v) non-recurring net finance cost; (vi) non-recurring items above EBIT (including non-
recurring impairment); and (vii) depreciation, amortization and impairment.
Normalized EBITDA and normalized EBIT are not accounting measures under IFRS accounting and should
not be considered as an alternative to profit attributable to equity holders as a measure of operational
performance, or an alternative to cash flow as a measure of liquidity. Normalized EBITDA and normalized
EBIT do not have a standard calculation method and AB InBev’s definition of normalized EBITDA and
normalized EBIT may not be comparable to that of other companies.
RECENT EVENTS
Further Partial Cancellation of Committed Senior Acquisition Facilities
On 4 April 2016 AB InBev announced that it had voluntarily cancelled a further 12.5 billion USD of the
commitments available under the 2015 Senior Facilities Agreement relating to the proposed combination
with SABMiller, following AB InBev’s debt capital market issuances in March under its EMTN program. As a
result, the total committed amount available under the 2015 Senior Facilities Agreement is 20.0 billion
USD, comprised of 10.0 billion USD under a five-year term facility and 10.0 billion USD under a disposals
bridge facility, the latter of which is expected to be repaid in full from the proceeds of certain disposals
related to the proposed acquisition of SABMiller.
Shareholders Agreement
Since 2004, a Shareholders Agreement between Stichting Anheuser-Busch InBev, EPS, EPS Participations,
BRC and Rayvax Société d'Investissements has provided for equal voting and control rights of BRC and
EPS over Stichting Anheuser-Busch InBev and indirectly, over the Anheuser-Busch InBev shares held by
such controlling shareholders. As at 31 December 2015, Stichting Anheuser-Busch InBev and the entities
acting in concert with it together held 52.77% of the voting rights of Anheuser-Busch InBev, with 41.28%
being held by Stichting Anheuser-Busch InBev itself. The controlling shareholders' structure of Anheuser-
Busch InBev is described in the company's annual report.
On 12 April 2016 AB InBev announced that its controlling shareholders had entered into an amended and
restated Shareholders Agreement on 11 April 2016. The amendment and restatement provides that, upon
(and subject to) the completion of the reverse merger of Anheuser-Busch InBev into the Belgian company
which will be the surviving entity of the group following the acquisition of SABMiller, the term of the
Shareholders Agreement will be extended by an additional ten years to 27 August 2034.
Public Interest Commitment in South Africa
On 14 April AB InBev announced that it had concluded an agreement with the South African Government
in relation to the public interest conditions that will be recommended to the Competition Commission and
Competition Tribunal in connection with the proposed acquisition of SABMiller by AB InBev.
The package of commitments addresses employment, localization of production and inputs used in the
production of beer and cider, empowerment in the company, long-term commitments to South Africa and
participation of small beer brewers in the local market. In a groundbreaking commitment, AB InBev has
undertaken to ensure that at no point in the future will there be involuntary job losses in South Africa as a
result of the transaction. In addition, the company has committed to maintain its total permanent
employment levels in South Africa as at the date of closing, for a period of five years.
The company also agreed to invest ZAR 1 billion to support small-holder farmers as well as to promote
enterprise development; local manufacturing, exports and jobs; the reduction of the harmful use of alcohol
(including making available locally produced low and no-alcohol choices for consumers) and green and
water-saving technologies. As part of the ZAR 1 billion commitment, AB InBev will finance 800 new
emerging farmers and 20 new commercial farmers to produce barley, hops, maize and malt for the
company, with the strategic intent to create additional jobs in the agricultural supply chain. The company
committed to expand the production of barley to be malted and to turn a current net import of barley to a
net export of malt (the processed form of grain used in beer brewing). The commitment will also support
other enterprise development initiatives, including through coaching and business incubation and the
localization of inputs into the production of beer, which range from agricultural inputs to packaging.
In addition, AB InBev undertook to work closely with government to reduce the harmful use of alcohol,
including through introducing and promoting no-alcohol and lower alcohol products to the South African
market to encourage consumers to make lower alcohol choices, including through brewing these products
locally where possible.
The company also agreed to support broad-based empowerment and will maintain South African
Breweries’ current Zenzele share-scheme which provides opportunities for black South Africans (including
employees) to participate as shareholders, until the scheme expires in 2020. The company will table a
proposal within two years of closure of the deal that will set out its long-term empowerment commitments
beyond 2020.
As a further indication of its long-term commitment to investment in the country, AB InBev's regional
head-office for Africa will be located in Johannesburg and a secondary listing on the Johannesburg Stock
Exchange has already been completed.
The agreement also includes commitments by AB InBev to support the participation of small craft-beer
producers in local markets.
It is expected that the agreement between the South African Government and AB InBev will expedite the
merger proceedings before the South African Competition Authorities. In terms of process going forward,
the agreement will be provided to the Competition Commission for consideration as part of its assessment
of the competition and public interest impact of the proposed acquisition. That assessment will culminate
in a recommendation by the Commission to the Competition Tribunal.
Acceptance of Asahi’s offer to acquire part of SABMiller’s European Business
On 10 February 2016, AB InBev announced that it had received a binding offer from Asahi Group Holdings,
Ltd (“Asahi”) to acquire certain of SABMiller’s European premium brands and their related businesses
(excluding certain rights in the United States).
On 19 April 2016, AB InBev announced that it had accepted this offer from Asahi, following completion of
the relevant employee information and consultation processes applicable to the sale of these brands and
businesses.
The acquisition by Asahi of these premium brands and related businesses, comprised of the Peroni,
Grolsch and Meantime brand families and related businesses in Italy, the Netherlands, the UK and
internationally, is conditional on the successful closing of the recommended acquisition of SABMiller by AB
InBev and the approval by the European Commission of Asahi as a purchaser of the business.
AB InBev updates European Union remedies package for recommended acquisition of SABMiller
On 29 April 2016 AB InBev announced that it had submitted an updated package of commitments to the
European Commission in line with its approach to proactively address potential regulatory considerations.
AB InBev has offered the entirety of assets of SABMiller in Central and Eastern Europe (Hungary, Romania,
Czech Republic, Slovakia and Poland) for divestment in addition to Peroni, Grolsch and Meantime and their
related businesses. These assets include a number of top brands in their markets and are expected to
attract considerable interest from potential buyers.
In line with AB InBev’s ambition to close the overall transaction during the second half of 2016, the
company has made this additional commitment in Phase 1 of the European Commission enquiry.
The proposed divestments are subject to review and approval by the European Commission and will be
conditional on the successful closing of the recommended acquisition of SABMiller by AB InBev, as
announced on 11 November 2015.
The divestment process in Europe will be carried out in the framework of the relevant employee
information and consultation requirements and the ongoing dialogue with employee representative bodies.
NOTES
AB InBev’s 1Q16 and 1Q15 reported numbers are based on unaudited interim consolidated financial statements
prepared in accordance with IFRS. Unless otherwise indicated, amounts are presented in million USD.
To facilitate the understanding of AB InBev’s underlying performance, the analyses of growth, including all comments in
this press release, unless otherwise indicated, are based on organic growth and normalized numbers. In other words,
financials are analyzed eliminating the impact of changes in currencies on translation of foreign operations, and scope
changes. Scope changes represent the impact of acquisitions and divestitures, the start or termination of activities or
the transfer of activities between segments, curtailment gains and losses and year over year changes in accounting
estimates and other assumptions that management does not consider as part of the underlying performance of the
business.
All references per hectoliter (per hl) exclude US non-beer activities. To eliminate the effect of geography mix, i.e. the
impact of stronger volume growth coming from countries with lower revenue per hl, and lower Cost of Sales per hl, we
are also presenting, where specified, organic growth per hectoliter figures on a constant geographic basis. When we
make estimations on a constant geographic basis, we assume each country in which we operate accounts for the same
percentage of our global volume as in the same period of the previous year.
Whenever presented in this document, all performance measures (EBITDA, EBIT, profit, tax rate, EPS) are presented on
a “normalized” basis, which means they are presented before non-recurring items. Non-recurring items are either
income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented
separately because they are important for the understanding of the underlying sustainable performance of the Company
due to their size or nature. Normalized measures are additional measures used by management, and should not replace
the measures determined in accordance with IFRS as an indicator of the Company’s performance. Values in the figures
and annexes may not add up, due to rounding.
1Q16 EPS is based upon a weighted average of 1 641 million shares compared to 1 642 million shares for 1Q15.
Legal Disclaimer
This release contains “forward-looking statements”. These statements are based on the current expectations and views
of future events and developments of the management of Anheuser-Busch InBev and are naturally subject to
uncertainty and changes in circumstances. The forward-looking statements contained in this release include, among
other things, statements relating to Anheuser-Busch InBev’s proposed acquisition of SABMiller and other statements
other than historical facts. Forward-looking statements include statements typically containing words such as “will”,
“may”, “should”, “believe”, “intends”, “expects”, “anticipates”, “targets”, “estimates”, “likely”, “foresees” and words of
similar import. All statements other than statements of historical facts are forward-looking statements. You should not
place undue reliance on these forward-looking statements, which reflect the current views of the management of
Anheuser-Busch InBev, are subject to numerous risks and uncertainties about Anheuser-Busch InBev and SABMiller and
are dependent on many factors, some of which are outside of Anheuser-Busch InBev’s control. There are important
factors, risks and uncertainties that could cause actual outcomes and results to be materially different, including the
satisfaction of the pre-conditions and the conditions to the transactions described herein, the ability to obtain the
regulatory approvals related to the transactions and the ability to satisfy any conditions required to obtain such
approvals, and the risks and uncertainties relating to Anheuser-Busch InBev described under Item 3.D of Anheuser-
Busch InBev’s Annual Report on Form 20-F (“Form 20-F”) filed with the US Securities and Exchange Commission
(“SEC”) on 14 March 2016. Other unknown or unpredictable factors could cause actual results to differ materially from
those in the forward-looking statements. There can be no certainty that the proposed transactions will be completed on
the terms described herein or at all.
The forward-looking statements should be read in conjunction with the other cautionary statements that are included
elsewhere, including Anheuser-Busch InBev’s most recent Form 20-F and other reports furnished on Form 6-K, and any
other documents that Anheuser-Busch InBev or SABMiller have made public. Any forward-looking statements made in
this communication are qualified in their entirety by these cautionary statements and there can be no assurance that
the actual results or developments anticipated by Anheuser-Busch InBev will be realized or, even if substantially
realized, that they will have the expected consequences to, or effects on, Anheuser-Busch InBev or its business or
operations. Except as required by law, Anheuser-Busch InBev undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
Future SEC Filings and This Filing: Important Information
In the event that AB InBev and SABMiller implement a transaction relating to the acquisition of SABMiller by AB InBev,
AB InBev or Newbelco SA/NV (a Belgian limited liability company formed for the purposes of such transaction) may be
required to file relevant materials with the SEC. Such documents, however, are not currently available. INVESTORS ARE
URGED TO READ ANY DOCUMENTS REGARDING SUCH POTENTIAL TRANSACTION IF AND WHEN THEY BECOME
AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain a free copy of
such filings without charge, at the SEC’s website (http://www.sec.gov) once such documents are filed with the SEC.
Copies of such documents may also be obtained from AB InBev, without charge, once they are filed with the SEC.
Notice to US investors
US holders of SABMiller shares should note that the steps of any transaction requiring approval by SABMiller
shareholders may be implemented under a UK scheme of arrangement provided for under English company law. If so,
it is expected that any shares to be issued under the transaction to SABMiller shareholders would be issued in reliance
upon the exemption from the registration requirements of the US Securities Act of 1933, provided by Section 3(a)(10)
thereof and would be subject to UK disclosure requirements (which are different from those of the United States). The
transaction may instead be implemented by way of a takeover offer under English law. If so, any securities to be issued
under the transaction to SABMiller shareholders will be registered under the US Securities Act, absent an applicable
exemption from registration. If the transaction is implemented by way of UK takeover offer, it will be done in
compliance with the applicable rules under the US Exchange Act of 1934, including any applicable exemptions provided
under Rule 14d-1(d) thereunder.
This filing shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
The first quarter 2016 (1Q16) financial data set out in Figure 1 (except for the volume information), Figures 7 to 9, 11,
13 to 15 and 18 of this press release have been extracted from the group’s unaudited condensed consolidated interim
financial statements as of and for the three months ended 31 March 2016, which have been reviewed by our statutory
auditors Deloitte Bedrijfsrevisoren BCVBA in accordance with the standards of the Public Company Accounting Oversight
Board (United States). The auditors concluded that, based on their review, nothing had come to their attention that
caused them to believe that those interim financial statements were not presented fairly, in all material respects, in
accordance with IAS 34 “Interim Financial Reporting”, as issued by the IASB and as adopted by the European Union.
Financial data included in Figures 3 to 6, 10, 12 and 16 to 17 have been extracted from the underlying accounting
records as of and for the three months ended 31 March 2016 (except for the volume information).
CONFERENCE CALL AND WEBCAST
Investor Conference call and Webcast on Wednesday, 4 May 2016:
3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode)
http://event.on24.com/r.htm?e=1117085&s=1&k=26BE3F08A99F242A291C465F498785BD
Conference call (with interactive Q&A)
http://www.directeventreg.com/registration/event/21562772
ANHEUSER-BUSCH INBEV CONTACTS
Media Investors
Marianne Amssoms Graham Staley
Tel: +1-212-573-9281 Tel: +1-212-573-4365
E-mail: marianne.amssoms@ab-inbev.com E-mail: graham.staley@ab-inbev.com
Karen Couck Lauren Abbott
Tel: +1-212-573-9283 Tel: +1-212-573-9287
E-mail: karen.couck@ab-inbev.com E-mail: lauren.abbott@ab-inbev.com
Kathleen Van Boxelaer Heiko Vulsieck
Tel: +32-16-27-68-23 Tel: +32-16-27-68-88
E-mail: kathleen.vanboxelaer@ab-inbev.com E-mail: heiko.vulsieck@ab-inbev.com
4 May 2016
Sponsor: Deutsche Securities SA Proprietary Limited
About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with a secondary listing
on the Mexico (MEXBOL: ABI) and South Africa (JSE: ANB) stock exchanges and with American Depositary Receipts on
the New York Stock Exchange (NYSE: BUD). It is the leading global brewer and one of the world’s top five consumer
products companies. Beer, the original social network, has been bringing people together for thousands of years and
the company’s portfolio of well over 200 beer brands continues to forge strong connections with consumers. This
includes global brands Budweiser®, Corona® and Stella Artois®; international brands Beck’s®, Leffe® and
Hoegaarden®; and local champions Bud Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Victoria®, Modelo
Especial®, Michelob Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Cass® and Jupiler®.
Anheuser-Busch InBev’s dedication to quality goes back to a brewing tradition of more than 600 years and the Den
Hoorn brewery in Leuven, Belgium, as well as the pioneering spirit of the Anheuser & Co brewery, with origins in St.
Louis, USA since 1852. Geographically diversified with a balanced exposure to developed and developing markets,
Anheuser Busch InBev leverages the collective strengths of more than 150 000 employees based in 26 countries
worldwide. In 2015, AB InBev realized 43.6 billion US dollar revenue. The company strives to be the Best Beer
Company Bringing People Together For a Better World. For more information, please visit: www.ab-inbev.com.
Annex 1
AB InBev Worldwide 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 107 363 - 670 - -1 824 104 868 -1.7%
of which AB InBev own beer 95 089 81 - -1 289 93 881 -1.4%
Revenue 10 453 - 61 -1 310 317 9 400 3.1%
Cost of sales -4 200 60 436 - 75 -3 778 -1.8%
Gross profit 6 253 - - 874 243 5 622 3.9%
Distribution expenses -1 059 2 174 - 57 - 939 -5.5%
Sales and marketing expenses -1 586 8 194 - 212 -1 598 -13.5%
Administrative expenses - 645 - 11 71 29 - 555 4.5%
Other operating income/(expenses) 250 - 21 - 45 - 22 163 -9.4%
Normalized EBIT 3 213 - 22 - 480 - 19 2 693 -0.6%
Normalized EBITDA 3 967 - 20 - 585 99 3 462 2.5%
Normalized EBITDA margin 38.0% 36.8% -20 bp
North America 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 27 326 - 119 - - 294 26 913 -1.1%
Revenue 3 601 - 38 - 40 9 3 532 0.3%
Cost of sales -1 475 43 10 65 -1 358 4.6%
Gross profit 2 126 4 - 30 74 2 175 3.5%
Distribution expenses - 316 2 8 4 - 301 1.4%
Sales and marketing expenses - 500 - 1 8 - 75 - 568 -15.1%
Administrative expenses -126 - 10 2 11 - 123 8.1%
Other operating income/(expenses) 16 - 10 - 5 11 81.4%
Normalized EBIT 1 200 - 14 - 11 19 1 194 1.6%
Normalized EBITDA 1 381 - 13 - 13 28 1 384 2.1%
Normalized EBITDA margin 38.3% 39.2% 70 bp
Mexico 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 9 105 - - 1 183 10 288 13.0%
Revenue 893 -6 - 176 144 854 16.3%
Cost of sales - 244 - 1 50 - 49 - 243 -20.5%
Gross profit 649 -7 - 126 95 611 14.7%
Distribution expenses -97 - 1 20 - 18 - 96 -18.8%
Sales and marketing expenses -171 10 36 - 51 - 176 -31.9%
Administrative expenses -103 - 16 12 - 76 11.1%
Other operating income/(expenses) 52 - 14 - 6 - 2 29 -5.9%
Normalized EBIT 330 - 12 - 60 35 292 10.8%
Normalized EBITDA 417 - 12 - 77 43 371 10.3%
Normalized EBITDA margin 46.8% 43.4% -237 bp
Latin America - North 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 31 282 151 - -2 294 29 140 -7.3%
Revenue 2 489 13 - 610 - 48 1 845 -1.9%
Cost of sales - 819 - 7 197 - 1 - 629 -0.1%
Gross profit 1 670 6 - 413 - 49 1 216 -2.9%
Distribution expenses - 321 - 1 84 - 6 - 244 -1.9%
Sales and marketing expenses - 296 - 77 - 12 - 231 -3.9%
Administrative expenses -129 - 29 15 - 85 11.7%
Other operating income/(expenses) 168 - - 37 - 32 98 -19.2%
Normalized EBIT 1 092 5 - 260 - 83 755 -7.6%
Normalized EBITDA 1 267 5 - 313 - 43 916 -3.4%
Normalized EBITDA margin 50.9% 49.6% -77 bp
Annex 1
Latin America - South 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 10 092 - 575 - - 501 9 017 -5.3%
Revenue 918 - 18 - 305 154 749 17.2%
Cost of sales -331 14 92 - 18 - 243 -5.7%
Gross profit 587 -4 - 213 136 506 23.4%
Distribution expenses -83 3 35 - 27 - 72 -33.5%
Sales and marketing expenses -95 - 34 - 28 - 90 -30.0%
Administrative expenses -32 - 10 - 3 - 25 -11.0%
Other operating income/(expenses) -5 - - 1 8 2 -
Normalized EBIT 372 - 1 - 135 85 321 23.0%
Normalized EBITDA 417 -1 - 152 101 364 24.2%
Normalized EBITDA margin 45.4% 48.6% 280 bp
Europe 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 8 296 - 56 - 149 8 390 1.8%
of which AB InBev own beer 7 967 - 56 - 200 8 111 2.5%
Revenue 775 -5 - 65 35 740 4.6%
Cost of sales - 342 - 31 - 18 - 329 -5.3%
Gross profit 433 -5 -34 17 411 4.0%
Distribution expenses - 86 - 1 8 - 9 - 88 -10.5%
Sales and marketing expenses - 193 - 17 - 20 - 196 -10.2%
Administrative expenses - 80 - 6 6 - 68 7.7%
Other operating income/(expenses) 1 2 - - 6 - 2 -
Normalized EBIT 75 - 4 -2 - 11 57 -15.7%
Normalized EBITDA 154 -4 -9 -7 134 -4.7%
Normalized EBITDA margin 19.9% 18.1% -175 bp
Asia Pacific 1Q15 Scope Currency Organic 1Q16 Organic
translation growth growth
Total volumes (thousand hls) 19 757 124 - -89 19 792 -0.5%
Revenue 1 294 11 -73 25 1 258 1.9%
Cost of sales - 650 - 6 37 -53 - 672 -8.1%
Gross profit 644 5 -36 -28 586 -4.3%
Distribution expenses - 107 - 1 6 - - 102 0.2%
Sales and marketing expenses - 280 2 16 -5 - 268 -1.6%
Administrative expenses - 77 - 4 1 - 72 1.8%
Other operating income/(expenses) 11 - - 1 8 19 67.9%
Normalized EBIT 191 6 -11 -23 163 -11.6%
Normalized EBITDA 340 6 -20 11 338 3.3%
Normalized EBITDA margin 26.3% 26.9% 35 bp
Global Export and Holding 1Q15 Scope Currency Organic 1Q16 Organic
Companies translation growth growth
Total volumes (thousand hls) 1 504 - 196 - 21 1 330 1.6%
Revenue 483 - 18 -41 -2 422 -0.5%
Cost of sales - 339 18 17 -1 - 305 -0.3%
Gross profit 144 - -23 -3 117 -2.4%
Distribution expenses - 50 1 14 - 2 - 37 -3.7%
Sales and marketing expenses - 51 - 2 5 -22 - 70 -42.4%
Administrative expenses - 97 - 4 -12 - 106 -12.6%
Other operating income/(expenses) 8 - - -2 7 -22.6%
Normalized EBIT - 46 - 1 - - 41 - 89 -74.2%
Normalized EBITDA - 10 -1 -2 -33 - 46 -
Date: 04/05/2016 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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