Wrap Text
Anheuser-Busch InBev reports Third Quarter and Nine Months 2017 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: ANB
NYSE ADS Code: BUD
JSE Share Code: ANH
ISIN: BE0974293251
(“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.
Except where otherwise stated, the comments below are based on organic figures and refer to 3Q17 and 9M17 versus the same period of last year.
For a description of the reference base and important disclaimers please refer to pages 13 and 14.
Anheuser-Busch InBev reports Third Quarter and
Nine Months 2017 Results
HIGHLIGHTS
- Revenue: Revenue grew by 3.6% in 3Q17, with revenue per hl growth of 5.0%. On a constant
geographic basis, revenue per hl grew by 5.4%, driven by revenue management initiatives and
continued premiumization. In 9M17, revenue grew by 4.1% with revenue per hl growth of 4.5%. On a
constant geographic basis, revenue per hl grew by 4.6%.
- Volume: Total volumes declined by 1.2% in 3Q17, with our own beer volumes down by 1.5%.
Continued strong growth in Mexico, Argentina, and Africa was more than offset by soft shipment
volumes in the US, primarily driven by the substantial weather impact in many parts of the country, and
Brazil. In 9M17, total volumes declined by 0.3% with own beer volumes up 0.1%.
- Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona,
grew by 1.6% in 3Q17 and by 7.3% in 9M17. Budweiser revenues declined by 2.2%, with 4.4% growth
in revenues outside of the US led by Brazil, South Korea and Chile. Stella Artois revenues grew by
0.9%, driven mainly by continued growth in Argentina and Brazil. Corona revenues grew by 9.6% with
11.2% growth in revenues outside of Mexico, with strong growth in China, Colombia and Ecuador.
- Cost of Sales (CoS): CoS decreased by 1.9% in 3Q17 and by 0.5% on a per hl basis, driven by synergy
capture as well as favorable emerging market exchange rates. On a constant geographic basis, CoS
per hl was flat in 3Q17. In 9M17, CoS increased by 2.0%, by 2.5% on a per hl basis, and by 2.8% on a
constant geographic basis.
- EBITDA increased by 13.8% in 3Q17, driven by revenue growth and continued synergy capture.
EBITDA margin increased by 353 bps to 38.9% in 3Q17. In 9M17, EBITDA grew by 10.7% with EBITDA
margin expanding by 230 bps to 38.0%.
- Net finance results: Net finance costs (excluding non-recurring net finance costs) decreased from
1 226 million USD in 3Q16 to 1 135 million USD in 3Q17 predominantly due to a mark-to-market gain
of 240 million USD in 3Q17, linked to the hedging of our share-based payment programs, compared to
a loss of 57 million USD in 3Q16, resulting in a swing of 297 million USD. Net finance costs were
4 255 million USD in 9M17 compared to 3 171 million USD in 9M16.
- Income taxes: Income tax in 3Q17 was 1 494 million USD compared to an income tax expense of 225
million USD in 3Q16. The normalized effective tax rate (ETR) was 16.7% in 3Q17, compared to a
normalized ETR of 11.7% in 3Q16. The normalized ETR was 19.1% in 9M17, up from 18.2% in 9M16.
- Profit: Normalized profit attributable to equity holders of AB InBev was 2 582 million USD in 3Q17
compared to 1 363 million USD in 3Q16, driven by the organic increase in EBITDA and lower net
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finance costs, partly offset by higher income tax expenses. Normalized profit attributable to equity
holders of AB InBev was 5 913 million USD in 9M17, compared to 3 934 million USD in 9M16.
- Earnings per share (EPS): Normalized EPS increased to 1.31 USD in 3Q17 from 0.83 USD in 3Q16,
primarily due to higher profits. Normalized EPS increased to 3.00 USD in 9M17 from 2.40 USD in 9M16.
- Interim Dividend: The AB InBev board has approved an interim dividend of 1.60 EUR per share for
the fiscal year 2017. Details of ex-coupon, record and payment dates are shown on page 12.
- Combination with SAB: The business integration continues to progress well, with synergies and cost
savings of 336 million USD captured during 3Q17. We are updating our 2.8 billion USD synergy and
cost savings expectation to 3.2 billion USD on a constant currency basis as of August 2016.
Figure 1. Consolidated performance (million USD)
3Q16 3Q16 3Q17 Organic
Reported Reference Base growth
Total Volumes (thousand hls) 121 027 162 944 161 045 -1.2%
AB InBev own beer 111 070 134 913 132 725 -1.5%
Non-beer volumes 9 158 27 241 27 085 -0.9%
Third party products 798 790 1 234 24.9%
Revenue 11 109 14 210 14 740 3.6%
Gross profit 6 716 8 511 9 194 7.1%
Gross margin 60.5% 59.9% 62.4% 208 bps
Normalized EBITDA 4 032 5 039 5 733 13.8%
Normalized EBITDA margin 36.3% 35.5% 38.9% 353 bps
Normalized EBIT 3 214 3 995 4 681 17.6%
Normalized EBIT margin 28.9% 28.1% 31.8% 382 bps
Profit attributable to equity holders of AB InBev 557 2 055
Normalized profit attributable to equity holders of AB InBev 1 363 2 582
Earnings per share (USD) 0.34 1.04
Normalized earnings per share (USD) 0.83 1.31
9M16 9M16 9M17 Organic
Reported Reference Base growth
Total Volumes (thousand hls) 340 803 456 441 466 595 -0.3%
AB InBev own beer 309 950 381 022 380 938 0.1%
Non-beer volumes 28 461 73 099 82 217 -2.9%
Third party products 2 392 2 319 3 440 17.7%
Revenue 31 315 39 736 41 844 4.1%
Gross profit 18 920 23 973 25 624 5.4%
Gross margin 60.4% 60.3% 61.2% 77 bps
Normalized EBITDA 11 505 14 385 15 895 10.7%
Normalized EBITDA margin 36.7% 36.2% 38.0% 230 bps
Normalized EBIT 9 129 11 374 12 741 13.0%
Normalized EBIT margin 29.2% 28.6% 30.4% 245 bps
Profit attributable to equity holders of AB InBev 842 4 963
Normalized profit attributable to equity holders of AB InBev 3 934 5 913
Earnings per share (USD) 0.51 2.52
Normalized earnings per share (USD) 2.40 3.00
Figure 2. Volumes (thousand hls)
3Q16 Scope Organic 3Q17 Organic growth
Reference growth Total Own beer
Base Volume volume
North America 31 912 137 -1 939 30 109 -6.1% -6.2%
Latin America West 27 152 - 21 881 28 012 3.2% 3.4%
Latin America North 28 947 6 -1 010 27 943 -3.5% -4.1%
Latin America South 7 478 - 333 7 811 4.5% 6.8%
EMEA 35 898 240 - 310 35 828 -0.9% -0.5%
Asia Pacific 31 103 -91 24 31 037 0.1% -0.5%
Global Export and Holding Companies 455 - 172 21 304 7.4% 7.4%
AB InBev Worldwide 162 944 100 -2 000 161 045 -1.2% -1.5%
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9M16 Scope Organic 9M17 Organic growth
Reference growth Total Own beer
Base Volume volume
North America 90 351 348 -3 433 87 265 -3.8% -3.9%
Latin America West 79 686 - 71 1 585 81 200 2.0% 2.0%
Latin America North 85 869 1 -1 377 84 493 -1.6% 0.0%
Latin America South 22 297 - 1 333 23 630 6.0% 9.1%
EMEA 93 617 11 681 156 105 454 0.2% 1.5%
Asia Pacific 83 265 - 111 450 83 605 0.5% 0.3%
Global Export and Holding Companies 1 357 - 509 101 948 11.9% 11.9%
AB InBev Worldwide 456 441 11 339 -1 185 466 595 -0.3% 0.1%
MANAGEMENT COMMENTS
Our business continued to deliver solid results this quarter. Revenue grew by 3.6%, driven by revenue
management and premiumization initiatives enhanced by our three global brands’ performances, especially
outside of their home markets.
Our EBITDA growth rate accelerated, up by 13.8% in 3Q17 and by 10.7% in 9M17, driven by solid top-line
growth and disciplined cost management including synergy capture.
We are also very proud of the 164 awards, of which 52 are gold medals, won at major beer competitions
by AB InBev this year to date. Our most awarded brewery so far this year is 4 Pines from Australia, with an
amazing 39 awards. We believe our impressive portfolio of high quality beers is key in enabling us to grow
the global beer category.
On 11 October 2017, we celebrated the first anniversary of our combination with SAB. We came together,
learned from one another, and grew into a better, stronger company. Our integration continues to progress
well, and as a result we have further increased our synergy guidance by 400 million USD to 3.2 billion USD,
to be delivered within the same four year period following the close of the combination (by October 2020).
These incremental synergies will be derived predominately from Best Practice Sharing and
Procurement/Engineering Savings.
As we enter the final months of the year, we will continue to push ourselves toward a strong finish. We have
plenty of opportunities ahead of us, and look forward with excitement to further building on our dream of
bringing people together for a better world.
United States
We estimate that industry STRs in the United States declined by 1.7% in 3Q17 and by 1.3% in 9M17. Our
own STRs were down 3.4% in the quarter and down 3.1% in 9M17, while our STWs were down 6.4% in
the quarter and down 4.0% in 9M17. The gap between STWs and STRs is attributable to disruptions from
major hurricanes in Texas and Florida, but we expect this gap to be reduced in 4Q17 as STWs and STRs
tend to converge on a full year basis. Our revenues, which are based on our STWs, decreased by 5.6% in
3Q17 and by 2.8% in 9M17. Revenue per hl grew by 0.9% in 3Q17 and by 1.3% in 9M17.
Our Above Premium brand portfolio accelerated this quarter, gaining approximately 50 bps of total market
share (40 bps in 9M17). Michelob Ultra grew volumes by double-digits and was the top share gainer in the
US for the tenth consecutive quarter, achieving the highest quarterly share gain in the past five years. Stella
Artois had another strong quarter, as one of the top three fastest growing import brands on an STR basis,
and our craft portfolio continues to gain share of segment.
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The Premium and Premium Light segments continue to underperform the industry. Budweiser and Bud
Light market share declined by 45 and 95 bps this quarter, respectively.
Budweiser’s “American Summer” campaign and the return of the “America” packaging contributed to
upward trends in brand health and led to Budweiser becoming the leading brand in the industry in ad
awareness and consideration growth in 3Q17. We plan to leverage this momentum into the fourth quarter,
when we will bring a seasonal Budweiser variant that celebrates the repeal of Prohibition with one of our
heritage recipes.
In 3Q17, we launched Bud Light’s new Quality campaign and an array of new content tied to the Friendship
platform, which was well-received by consumers and positively impacted brand equity. We have been
customizing content to identify with consumers at a more local level, and as we see improvement in
activated markets, we will continue to expand the program.
Our Value brand portfolio, led by the Busch brand family, also performed well this quarter.
We are driving the momentum behind our SpikedSeltzer and Teavana brands, as we expand our portfolio
beyond traditional beer. Teavana is now the number one super premium ready-to-drink tea in the markets
where we launched earlier this year, and SpikedSeltzer continues to grow share and volume.
Overall, we estimate a decline in total market share of approximately 80 bps in 3Q17, representing a
sequential improvement on 2Q17 and in line with 9M17. Our market share remains under pressure while
we continue to balance the share and profitability equation. However, we are encouraged by the share
growth of our Above Premium brands, as well as the improved responses to the new content in our
marketing campaigns. Our premiumization strategy and tight cost management enabled the continued
expansion of our gross profit margin, which grew by 94 bps to 62.0%, as well as the delivery of EBITDA
margin expansion of 211 bps to 42.2% in the quarter, the highest level in thirteen quarters. However, the
hurricanes accounted for an estimated 2 pp reduction to EBITDA growth in the quarter, resulting in an
EBITDA decline of 0.7% versus 3Q16. In 9M17, EBITDA grew by 0.7% with EBITDA margin expansion of
145 bps to 41.6%.
Mexico
Our business in Mexico continued to perform well in the quarter, with double-digit revenue growth driven
by mid-single digit volume and revenue per hl growth, in line with the year to date performance, despite the
negative impact of the earthquakes that hit Mexico during the month of September.
Victoria and Corona Extra each secured growth in the core segment, while Bud Light and the Modelo Family
converted high consumer engagement on special occasions into volume growth in the core plus segment.
With respect to our global brand portfolio, we continue to sharpen the premium positioning of Budweiser,
while Stella Artois benefitted from continued communication surrounding food pairing.
EBITDA grew by 8.3% in Mexico in 3Q17, with margin compression of 110 bps to 42.7%. As in previous
quarters, operating leverage was constrained by the impact of currency devaluation on our CoS as well as
elevated distribution costs caused by the combined effect of a 30% increase in fuel costs at the beginning
of the year and pressure on the production grid to meet regional and global demand. In 9M17, EBITDA
grew by 9.3% with margin contraction of 18 bps to 42.7%.
Colombia
In Colombia, our revenue grew by 6.7% in 3Q17, driven by revenue per hl growth of 6.6%. Our non-beer
volumes performed very well, growing by 10.3%, due to a favorable comparable and enhanced by a
successful national promotion of Pony Malta. Our beer volumes declined by 1.4%, as the macroeconomic
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environment remains challenging with consumer confidence and real disposable income under continued
pressure.
The Aguila brand performed well this quarter, with a new “Days of Soccer” campaign focused on driving
consumption on weekday occasions as well as the launch of a new equity campaign. Our local premium
brand, Club Colombia, also had a strong quarter as a result of successful brand variants such as Trigo and
Oktoberfest. Our global brands continued their rapid growth, with Corona leading the way and becoming
the country’s biggest international premium brand by volume.
Our EBITDA in Colombia grew by 4.7% in 3Q17, with margin contraction of 95 bps. This result was driven
by top-line growth and synergy capture, partially offset by the phasing of sales and marketing investments
as well as the release of certain provisions in the prior year. In 9M17, EBITDA grew by 4.6% with margin
expansion of 132 bps.
Brazil
In Brazil, our revenue grew by 8.6% in 3Q17 with net revenue per hl growth of 13.1% and a volume decline
of 4.0%. Beer volumes were down by 5.4% in the quarter, impacted by an industry that is still in recovery
and by the fact that in the prior year, price increases were delayed until the fourth quarter, creating a difficult
comparable.
In 9M17, revenue increased by 2.0% with net revenue per hl growth of 4.0% and a volume decline of 1.9%.
Beer volumes were down by 1.1%, outperforming the industry thus far this year.
Revenue per hl growth was aided by double-digit growth in our high end portfolio with continued strong
growth in all three global brands, especially Budweiser. With respect to our local brands, the core plus
portfolio also grew by double-digits, led by Brahma Extra and Bohemia. Our Brazilian portfolio received the
most awards of any of our markets at the World Beer Awards in the UK during the quarter, reinforcing the
quality credentials of our national beers.
Our revenue management initiatives implemented during 3Q17 contributed to the increase in net revenue
per hl that, along with an improved cost performance, translated into EBITDA growth of 14.5%. Strong
EBITDA growth in our beer business partly offset by an EBITDA decline in our non-beer business, which
was heavily impacted by commodity price escalation in the quarter. We retain our previous guidance for a
flattish to low single digit increase in CoS per hl in the second half of 2017. Our EBITDA margin expanded
by 201 bps to 39.0% in 3Q17. In 9M17, our EBITDA declined by 9.5%, with margin contraction of 496 bps
to 39.0%.
We believe that the revenue growth achieved this quarter signals a return to sustainable growth from a
strengthened market position in our beer business. We remain cautiously optimistic about the Brazilian
economy, and are confident in our commercial plans and our ability to accelerate EBITDA growth and
margin recovery for the balance of the year.
South Africa
Our beer revenues in South Africa grew by 3.9% in 3Q17, with revenue per hl growth of 6.6% partially offset
by beer volume declines of 2.5%. This decline primarily resulted from the phasing of inventory levels
between 2Q17 and 3Q17 due to the timing of our price increases. In 9M17, revenue grew by 7.5% with
revenue per hl growth of 5.3% and beer volume growth of 2.1%.
Our high end portfolio continued to deliver strong growth in Stella Artois and Corona, and we recently began
seeding Budweiser into the market to complete our global brand portfolio in South Africa. Castle Lite
performed well this quarter with volumes growing by double-digits, as the brand focuses on growing the in-
home consumption occasion heading into the summer season. Flying Fish also continues to perform
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extremely well, targeting mixed gender occasions and launching “Flying Fish Chill” in September, the first
light flavored beer in South Africa.
Strong top-line growth, combined with synergy capture, resulted in EBITDA growth of 30.7% with margin
expansion of 645 bps in 3Q17. In 9M17, our EBITDA grew by 23.6% with margin expansion of 502 bps.
China
Revenue in China grew by 4.6% in the quarter with continued premiumization driving revenue per hl growth
of 4.8%, despite slightly lower volumes of 0.2%, which was driven by industry headwinds concentrated in
the Northeastern and Southern provinces. Revenue for 9M17 grew by 7.4% with revenue per hl up 5.7%
and volume growth of 1.6%.
Budweiser continued to excel in all brand health metrics, growing preference and penetration supported by
occasion-focused pack innovation. Harbin Ice enjoyed high single digit volume growth, building on strong
momentum in the first half, aided by the wheat-based Harbin Baipi innovation.
Our super premium portfolio, led by Corona, Hoegaarden, and Franziskaner, grew by high double-digits.
These brands, with their unique brand characteristics and positioning, continue to exhibit strong growth
among LDA mixed gender consumers in high end outlets and premium occasions. They are also driving
further margin expansion, with gross margins of approximately 10 times those of core brands in China.
EBITDA grew by 12.0% in 3Q17, with margin expansion of 193 bps to 29.0%. This is a result of strong
top-line growth combined with effective cost management. In 9M17, EBITDA was up 22.8% with margin
expansion of over 400 bps to 32.6%.
Highlights from our other markets
Canada experienced a challenging third quarter due to a softer beer industry leading to a low single digit
volume decline. Market share performance continues to be solid, with Bud Light accelerating momentum
and continued growth in the high end segment, with both our craft portfolio and Stella Artois gaining share.
We have also achieved the leadership position in the cider market, which continues to grow by double-
digits, and are seeing strong performance in our ready-to-drink innovations.
Peru delivered revenue growth of 5.4% with volumes up 1.0%, driven by commercial initiatives and growth
within both the beer and non-beer categories. Ecuador also recorded revenue growth of 11.9% and volume
growth of 6.5% in the quarter as a result of top-line initiatives including the launch of global brands, as well
as cycling a favorable comparable after the earthquake in April 2016.
Argentina delivered double-digit beer volume growth, with enhanced commercial initiatives continuing to
drive good results for both our core and premium portfolio. We also gained share of total alcohol this quarter
through successful targeting of the in-home consumption occasion.
Within EMEA, we had another solid quarter in Western Europe, achieving market share gains in most of
our markets. The UK continued to deliver double-digit top-line growth, resulting from a strong commercial
performance. In Eastern Europe, revenues declined by low single digits driven by the ongoing headwind
of the large PET ban in Russia. However, our global and premium brands continue their strong growth. In
Africa excluding South Africa, own beer volumes grew in the mid-teens, fueled by good growth in Nigeria,
Tanzania, Uganda, Mozambique and Zambia.
Australia continues to see a strong performance, led by the Great Northern franchise, our number one
brand in Australia in 3Q17. We also became the number one cider player in Australia for the past twelve
months, driven by the growth of Pure Blonde Cider and Mercury Hard Cider. We continue to grow our Craft
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portfolio, including the newly acquired 4 Pines based in New South Wales. Our global brands continue to
perform well, with increased penetration and distribution across the country. However, revenues declined
by mid-single digits this quarter, with volumes down by high single digits, due to the change of control
impact of the legacy AB InBev portfolio, which led to a difficult comparable in 3Q16. We expect this impact
to normalize in 4Q17. Revenue per hl increased by mid-single digits in the quarter.
2017 OUTLOOK
(i) Top-line: While recognizing the increased volatility in some of our key markets, we expect to
accelerate total revenue growth in FY17, driven by the solid growth of our global brands and strong
commercial plans, including revenue management initiatives.
(ii) Cost of Sales: We expect CoS per hl to increase by low single digits on a constant geographic basis,
despite unfavorable foreign exchange transactional impacts, and growth in our premium brands.
(iii) Selling, General and Administrative Expenses: We expect SG&A to remain broadly flat, as we will
continue to find savings in overhead to invest behind our brands.
(iv) Synergies: We are updating our 2.8 billion USD synergy and cost savings expectation to 3.2 billion
USD on a constant currency basis as of August 2016. From this total, 547 million USD was reported
by SAB as of 31 March 2016, and 1 205 million USD was captured between 1 April 2016 and
30 September 2017. The balance of approximately 1.45 billion USD is expected to be captured in the
next three years.
The breakdown of our revised synergy guidance is as follows:
- Procurement & Engineering Savings – 29% (previously 25%)
- Brewery & Distribution Efficiencies – 19% (previously 25%)
- Corporate Headquarter/Overlapping Regional Headquarters – 18% (previously 20%)
- Best Practice Sharing – 34% (previously 30%)
We are also updating the estimated one-off cash costs required to deliver the synergies to 1.0 billion
USD, an increase of 100 million USD, to be incurred in the first three years of integration.
(v) Net Finance Costs: We expect the average rate of interest on net debt in FY17 to be in the range of
3.5% to 4.0%. Net pension interest expenses and accretion expenses are expected to be
approximately 30 and 150 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.
(vi) Effective Tax Rate (ETR): We expect the normalized ETR in FY17 to be in the range of 22% to 24%,
excluding any future gains and losses relating to the hedging of our share based programs. This
guidance continues to include the impact of the change in country mix following the combination with
SAB and the expected tax consequences of the funding of the combination. At this point, we expect
to be at the lower end of this range.
(vii) Net Capital Expenditure: We expect net capital expenditure of approximately 3.7 billion USD in
FY17.
(viii) Debt: Approximately one third of our gross debt is denominated in currencies other than the USD,
principally the Euro. Our optimal capital structure remains a net debt to EBITDA ratio of around 2x.
(ix) Dividends: We continue to expect dividends to be a growing flow over time, although growth in the
short term is expected to be modest given the importance of deleveraging.
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CONSOLIDATED INCOME STATEMENT
Figure 3. Consolidated income statement (million USD)
3Q16 3Q16 3Q17 Organic
Reported Reference Base growth
Revenue 11 109 14 210 14 740 3.6%
Cost of sales -4 393 -5 698 -5 546 1.9%
Gross profit 6 716 8 511 9 194 7.1%
SG&A -3 649 -4 716 -4 652 3.4%
Other operating income/(expenses) 147 200 139 -34.4%
Normalized profit from operations (normalized EBIT) 3 214 3 995 4 681 17.6%
Non-recurring items above EBIT -138 -173
Net finance income/(cost) -1 226 -1 135
Non-recurring net finance income/(cost) - 678 177
Share of results of associates 3 88
Income tax expense - 225 -1 494
Profit from continuing operations 950 2 144
Discontinued operations results - -
Profit 950 2 144
Profit attributable to non-controlling interest 394 89
Profit attributable to equity holders of AB InBev 557 2 055
Normalized EBITDA 4 032 5 039 5 733 13.8%
Normalized profit attributable to equity
holders of AB InBev 1 363 2 582
9M16 9M16 9M17 Organic
Reported Reference Base growth
Revenue 31 315 39 736 41 844 4.1%
Cost of sales -12 395 -15 764 -16 220 -2.0%
Gross profit 18 920 23 973 25 624 5.4%
SG&A -10 360 -13 291 -13 431 2.0%
Other operating income/(expenses) 569 692 547 -16.2%
Normalized profit from operations (normalized EBIT) 9 129 11 374 12 741 13.0%
Non-recurring items above EBIT - 276 - 460
Net finance income/(cost) -3 171 -4 255
Non-recurring net finance income/(cost) -2 846 - 34
Share of results of associates 5 213
Income tax expense -1 059 -2 487
Profit from continuing operations 1 780 5 716
Discontinued operations results - 28
Profit 1 780 5 745
Profit attributable to non-controlling interest 938 782
Profit attributable to equity holders of AB InBev 842 4 963
Normalized EBITDA 11 505 14 385 15 895 10.7%
Normalized profit attributable to equity
holders of AB InBev 3 934 5 913
Revenue
Consolidated revenue grew by 3.6% in 3Q17, with revenue per hl growth of 5.0%, driven by our revenue
management and premiumization initiatives. On a constant geographic basis, revenue per hl grew by 5.4%.
In 9M17, revenue grew by 4.1%, with revenue per hl growth of 4.5% on an organic basis and 4.6% on a
constant geographic basis.
Cost of Sales (CoS)
Total CoS decreased by 1.9%, and by 0.5% on a per hl basis in 3Q17. This decrease was driven by synergy
capture as well as favorable transactional foreign exchange impacts. On a constant geographic basis, CoS
per hl was flat. In 9M17, total CoS increased by 2.0%, by 2.5% on a per hl basis and by 2.8% per hl on a
constant geographic basis.
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Selling, General and Administrative Costs (SG&A)
SG&A declined by 3.4%, reflecting strong cost discipline combined with good synergy capture. In 9M17,
SG&A declined by 2.0%.
Other operating income/(expenses)
Other operating income decreased organically by 34.4% to 139 million USD in 3Q17 as government grants
received in the previous year in Brazil were not repeated. Other operating income decreased by 16.2% to
547 million USD in 9M17.
Non-recurring items above EBIT
Figure 4. Non-recurring items above EBIT (million USD)
3Q16 3Q17 9M16 9M17
Restructuring - 29 - 119 - 92 - 407
Acquisition costs / Business combinations - 105 - 18 - 183 - 43
Business and asset disposal (including impairment losses) -4 - 36 -2 - 10
Impact on profit from operations - 138 - 173 - 276 - 460
Normalized profit from operations excludes negative non-recurring items of 173 million USD in 3Q17,
primarily related to the one-off restructuring costs related to the SAB integration.
Figure 5. Net finance income/(cost) (million USD)
3Q16 3Q17 9M16 9M17
Net interest expense - 881 - 999 -2 428 -3 056
Net interest on net defined benefit liabilities - 24 - 27 - 83 - 82
Accretion expense - 143 - 149 - 406 - 452
Other financial results - 178 40 - 254 - 665
Net finance income/(cost) -1 226 -1 135 -3 171 -4 255
Net finance costs (excluding non-recurring net finance costs) were 1 135 million USD in 3Q17 compared
to 1 226 million USD in 3Q16. Net interest expense increased from 881 million USD to 999 million USD.
Other financial results are negatively impacted by foreign exchange losses offset by a mark-to-market gain
of 240 million USD in 3Q17, linked to the hedging of our share-based payment programs, compared to a
loss of 57 million USD in 3Q16.
Net finance costs in 9M17 were 4 255 million USD compared to 3 171 million USD in 9M16. This increase
in net finance costs was driven primarily by additional debt related to the SAB combination and interest
expenses on the legacy SAB debt. Other finance results in 9M17 were negatively impacted by foreign
exchange losses partially offset by a positive mark-to-market adjustment of 105 million USD, linked to the
hedging of our share-based payment programs, compared to a gain of 249 million USD in 9M16.
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 6 below.
Figure 6. Share-based payment hedge
3Q16 3Q17 9M16 9M17
Share price at the start of the period (Euro) 117.60 96.71 114.40 100.55
Share price at the end of the period (Euro) 116.60 101.30 116.60 101.30
Number of equity derivative instruments at the end of the period (millions) 44.2 46.9 44.2 46.9
ab-inbev.com 9
Non-recurring net finance income/(cost)
Figure 7. Non-recurring net finance income/(cost) (million USD)
3Q16 3Q17 9M16 9M17
Mark-to-market (Grupo Modelo deferred share instrument) - 22 113 124 42
Mark-to-market (Portion of the FX hedging of the purchase price of the combination with
- 594 - -2 959 -
SABMiller that did not qualify for hedge accounting)
Other mark-to-market - 17 109 276 40
Other - 45 - 45 - 287 - 116
Non-recurring net finance income/(cost) - 678 177 -2 846 - 34
Non-recurring net finance income was 177 million USD in 3Q17 compared to a cost of 678 million USD
in 3Q16. Non-recurring net finance costs in 3Q16 included a negative mark-to-market adjustment of 594
million USD, related to the portion of the FX hedging of the purchase price of the combination with SAB that
did not qualify for hedge accounting under IFRS rules.
The 3Q17 result includes a positive mark-to-market adjustment on our non-recurring equity derivatives
related to the hedging of the deferred share instrument in connection with the Grupo Modelo combination
and the restricted share instrument in connection with the SAB combination. The number of shares covered
by the respective hedgings are shown in figure 8, together with the opening and closing share prices.
Figure 8. Non-recurring equity derivative instruments
3Q16 3Q17 9M16 9M17
Share price at the start of the period (Euro) 117.60 96.71 114.40 100.55
Share price at the end of the period (Euro) 116.60 101.30 116.60 101.30
Number of equity derivative instruments at the end of the period (millions) 38.1 45.5 38.1 45.5
Figure 9. Income tax expense (million USD)
3Q16 3Q17 9M16 9M17
Income tax expense 225 1 494 1 059 2 487
Effective tax rate 19.2% 42.1% 37.4% 31.1%
Normalized effective tax rate 11.7% 16.7% 18.2% 19.1%
The normalized effective tax rate reached 16.7% in 3Q17 compared to 11.7% in 3Q16.
The effective tax rate was 42.1% in 3Q17 compared to 19.2% in 3Q16. The increase results from Ambev
and certain of its subsidiaries joining the Brazilian Tax Regularization Program in September 2017 whereby
Ambev committed to pay some tax contingencies that were under dispute, totaling 3.5 billion BRL (1.1
billion USD), with 1.0 billion BRL (0.3 billion USD) to be paid this year. The remaining amount is payable in
145 monthly installments beginning in January 2018, plus interest. Within these contingencies, a dispute
related to presumed taxation at Ambev’s subsidiary CRBs was not provided for until 3Q17 as the loss was
previously assessed as possible. The total amount recognized as non-recurring is 3.1 billion BRL (1.0 billion
USD) of which 3.0 billion BRL (0.9 billion USD) is reported as income tax and 141 million BRL (44 million
USD) is reported as net finance cost.
Figure 10. Normalized Profit attribution to equity holders of AB InBev (million USD)
3Q16 3Q17 9M16 9M17
Profit attributable to equity holders of AB InBev 557 2 055 842 4 963
Non-recurring items, after taxes, attributable to equity holders of AB InBev 128 704 246 944
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB InBev 678 - 177 2 846 34
Discontinued operations results - - - - 28
Normalized profit attributable to equity holders of AB InBev 1 363 2 582 3 934 5 913
ab-inbev.com 10
Normalized and Basic EPS
Figure 11. Earnings per share (USD)
3Q16 3Q17 9M16 9M17
Basic earnings per share 0.34 1.04 0.51 2.52
Non-recurring items, after taxes, attributable to equity holder of AB InBev, per share 0.08 0.36 0.15 0.48
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB InBev, per
share 0.41 -0.09 1.73 0.02
Discontinued operations results, per share - - - -0.01
Normalized earnings per share 0.83 1.31 2.40 3.00
Normalized earnings per share (EPS) increased from 0.83 USD in 3Q16 to 1.31 USD in 3Q17, primarily
driven by the increase in profit and partially offset by a higher number of shares.
Basic earnings per share increased from 0.34 USD in 3Q16 to 1.04 USD in 3Q17. The 3Q17 basic earnings
per share is negatively impacted by the non-recurring taxes accrued by Ambev when it joined the Brazilian
Tax Regularization Program. The 3Q16 basic earnings per share were negatively impacted by losses on
hedges related to the SAB combination that did not qualify for hedge accounting.
Figure 12. Key components - Normalized Earnings per share in USD
3Q16 3Q17 9M16 9M17
Normalized EBIT 1.96 2.85 5.56 7.76
Mark-to-market (Hedging of our share-based payment programs) -0.04 0.14 0.15 0.06
Pre-funding of SAB transaction -0.28 - -0.74 -
Net finance cost -0.42 -0.83 -1.34 -2.65
Income tax expense -0.14 -0.36 -0.66 -0.99
Associates & non-controlling interest -0.25 -0.23 -0.57 -0.58
Share dilution - -0.26 - -0.60
Normalized EPS 0.83 1.31 2.40 3.00
Note: 9M16 and 9M17 before dilution calculated based upon weighted average number of shares per 9M16 of 1 641 million shares.
EPS after dilution based upon weighted average number of shares per 9M17 of 1 970 million shares.
Reconciliation between profit attributable to equity holders and normalized EBITDA
Figure 13. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD)
3Q16 3Q17 9M16 9M17
Reported Reported
Profit attributable to equity holders of AB InBev 557 2 055 842 4 963
Non-controlling interests 394 89 938 782
Profit 950 2 144 1 780 5 745
Discontinued operations results - - - - 28
Profit from continuing operations 950 2 144 1 780 5 716
Income tax expense 225 1 494 1 059 2 487
Share of result of associates -3 - 88 -5 - 213
Net finance (income)/cost 1 226 1 135 3 171 4 255
Non-recurring net finance (income)/cost 678 - 177 2 846 34
Non-recurring items above EBIT (incl. non-recurring impairment) 138 173 276 460
Normalized EBIT 3 214 4 681 9 129 12 741
Depreciation, amortization and impairment 818 1 052 2 377 3 154
Normalized EBITDA 4 032 5 733 11 505 15 895
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) discontinued operations results; (iii) income tax expense; (iv) share
of results of associates; (v) net finance cost; (vi) non-recurring net finance cost; (vii) non-recurring items
above EBIT (including non-recurring impairment); and (viii) 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
ab-inbev.com 11
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.
INTERIM DIVIDEND
The AB InBev board has approved an interim dividend of 1.60 EUR per share for the fiscal year 2017.
Ex-coupon date Record Date Payment Date
Euronext: ABI 14 November 2017 15 November 2017 16 November 2017
MEXBOL: ANB 14 November 2017 15 November 2017 16 November 2017
JSE: ANH 15 November 2017 17 November 2017 20 November 2017
NYSE: BUD (ADR Program) 14 November 2017 15 November 2017 07 December 2017
Restricted Shares 14 November 2017 15 November 2017 16 November 2017
RECENT EVENTS
1. Extension of 9.0 billion USD revolving credit facility
We extended our 9.0 billion USD revolving credit facility by two years, effective on 3 October 2017. The
new maturity date of the facility is 30 August 2022.
2. Completion of Coca-Cola Beverages Africa disposal
On 4 October 2017, we announced that the transition of our 54.5% equity stake in Coca-Cola Beverages
Africa (Pty) Ltd (“CCBA”) for 3.15 billion USD, after customary adjustments, as announced on 21 December
2016, has now been completed.
CCBA, the largest Coca-Cola bottler in Africa, was formed in 2016 through the combination of the African
non-alcohol ready-to-drink bottling interests of former SABMiller plc, The Coca-Cola Company and Gutsche
Family Investments. It includes the countries of South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia,
Mozambique, Ghana, Mayotte, and Comoros.
Following completion, CCBA will remain subject to the agreement reached with the South African
Government and the South African Competition Authorities on several conditions, all of which were
previously announced.
In addition, the companies continue to work towards finalizing the terms and conditions of the agreement
for The Coca-Cola Company to acquire our interest in, or the bottling operations of, our businesses in
Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador, and Honduras. These transactions are
subject to the relevant regulatory and shareholder approvals in the different jurisdictions.
ab-inbev.com 12
3. Early redemption of notes
On 11 October 2017, we announced that we are exercising our respective options to redeem in full the
entire outstanding principal amount of the following series of notes on 10 November 2017:
Aggregate principal amount
Issuer Title of series of notes (Million USD)
Anheuser-Busch InBev Finance 1.25% Notes due 2018 1 000
Anheuser-Busch InBev Worldwide 6.50% Notes due 2018 627
Anheuser-Busch Companies 4.50% Notes due 2018 200
Anheuser-Busch Companies 5.50% Notes due 2018 500
ABI SAB Group Holding Limited 6.50% Notes due 2018 73
The total principal amount of the notes that will be retired is approximately 2.4 billion USD and the
redemption of the notes will be financed with cash.
NOTES
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 and discontinued operations. 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. The results of the CEE business are presented as “discontinued
operations result” until their disposal on 31 March 2017. Values in the figures and annexes may not add up, due to rounding.
Given the transformational nature of the transaction with SAB that closed on 10 October 2016, and to facilitate the understanding of
AB InBev’s underlying performance, AB InBev has updated its 3Q16 and 9M16 segment reporting for purposes of this results
announcement and internal review by senior management. This presentation (referred to as the “Reference Base”) includes, for
comparative purposes, the results of the SAB business as if the combination had taken place at the beginning of 4Q15, but excluding
the results of (i) those business sold since the combination was completed, including the joint venture stakes in MillerCoors and CR
Snow, and the sale of the Peroni, Grolsch and Meantime brands and associated businesses in Italy, the Netherlands, the UK and
internationally and (ii) the Central and Eastern Europe business and the stake in Distell. The changes, effective 1 October 2016,
include the former SAB geographies. Colombia, Peru, Ecuador, Honduras and El Salvador are reported together with Mexico as Latin
America West, Panama is reported within Latin America North, Africa is reported together with Europe as EMEA, and Australia, India
and Vietnam are reported within APAC.
3Q17 and 9M17 EPS is based upon a weighted average of 1 970 million shares compared to a weighted average of 1 641 million
shares for 3Q16 and 9M16.
ab-inbev.com 13
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 AB 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 AB InBev’s business
combination with SAB 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 AB InBev, are subject
to numerous risks and uncertainties about AB InBev and are dependent on many factors, some of which are outside of AB InBev’s
control. There are important factors, risks and uncertainties that could cause actual outcomes and results to be materially different,
including the ability to realize synergies from the business combination with SAB, the risks and uncertainties relating to AB InBev
described under Item 3.D of AB InBev’s Annual Report on Form 20-F (“Form 20-F”) filed with the US Securities and Exchange
Commission (“SEC”) on 22 March 2017. Other unknown or unpredictable factors could cause actual results to differ materially from
those in the forward-looking statements.
The forward-looking statements should be read in conjunction with the other cautionary statements that are included elsewhere,
including AB InBev’s most recent Form 20-F and other reports furnished on Form 6-K, and any other documents that AB InBev or
SAB 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 AB InBev will be realized or, even
if substantially realized, that they will have the expected consequences to, or effects on, AB InBev or its business or operations. Except
as required by law, AB InBev undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
The 2016 Reference Base information is based in part on certain assumptions that AB InBev believes are reasonable under the
circumstances. The 2016 Reference Base information is presented for illustrative purposes only and does not necessarily reflect the
results of operations or the financial position of the combined former AB InBev and SAB groups that would have resulted had the
combination occurred on 8 October 2015, or project the results of operations or financial position of the combined group for any future
date or period. The 2016 Reference Base information is not pro forma financial information, and has not been prepared in accordance
with Article 11 of Regulation S-X promulgated by the U.S. Securities and Exchange Commission. It is therefore not consistent in terms
of content and presentation with pro forma financial information that has been or will be included in reports filed under Sections 13(a)
or 15(d) of the U.S. Securities Exchange Act of 1934, as amended.
The third quarter 2017 (3Q17) and nine months (9M17) financial data set out in Figure 1 (except for the volume information), Figures
3 to 5, 7, 9 to 11 and 13 of this press release have been extracted from the group’s unaudited condensed consolidated interim financial
statements as of and for the nine months ended 30 September 2017, 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 prepared 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 6, 8 and 12 have been extracted from
the underlying accounting records as of and for the nine months ended 30 September 2017 (except for the volume information).
CONFERENCE CALL AND WEBCAST
Investor Conference call and Webcast on Thursday, 26 October 2017:
3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode)
http://bit.ly/2gkWe2P
Conference call (with interactive Q&A)
http://bit.ly/2uGfb9e
ab-inbev.com 14
ANHEUSER-BUSCH INBEV CONTACTS
Media Investors
Marianne Amssoms Henry Rudd
Tel: +1-212-573-9281 Tel: +1-212-503-2890
E-mail: marianne.amssoms@ab-inbev.com E-mail: henry.rudd@ab-inbev.com
Aimee Baxter Mariusz Jamka
Tel: +1-718-650-4003 Tel: +32-16-27-68-88
E-mail: aimee.baxter@ab-inbev.com E-mail: mariusz.jamka@ab-inbev.com
Peter Dercon Lauren Abbott
Tel: +32-16-27-68-23 Tel: +1-212-573-9287
E-mail: peter.dercon@ab-inbev.com E-mail: lauren.abbott@ab-inbev.com
About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings on the Mexico
(MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York Stock
Exchange (NYSE: BUD). Our Dream is to bring people together for a better world. Beer, the original social network, has been bringing
people together for thousands of years. We are committed to building great brands that stand the test of time and to brewing the best
beers using the finest natural ingredients. Our diverse portfolio of well over 500 beer brands includes global brands Budweiser®,
Corona® and Stella Artois®; multi-country brands Beck’s®, Castle®, Castle Lite®, Hoegaarden® and Leffe®; and local champions
such as Aguila®, Antarctica®, Bud Light®, Brahma®, Cass®, Chernigivske®, Cristal®, Harbin®, Jupiler®, Klinskoye®, Michelob
Ultra®, Modelo Especial®, Quilmes®, Victoria®, Sedrin®, Sibirskaya Korona® and Skol®. Our brewing heritage dates back more
than 600 years, spanning continents and generations. From our European roots at the Den Hoorn brewery in Leuven, Belgium. To
the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle Brewery in South Africa during the
Johannesburg gold rush. To Bohemia, the first brewery in Brazil. Geographically diversified with a balanced exposure to developed
and developing markets, we leverage the collective strengths of approximately 200 000 employees based in more than 50 countries
worldwide. For 2016, AB InBev’s reported revenue was 45.5 billion USD (excluding JVs and associates).
26 October 2017
JSE Sponsor: Deutsche Securities (SA) Proprietary Limited
ab-inbev.com 15
Annex 1
AB InBev Worldwide 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 162 944 100 - -2 000 161 045 -1.2%
of which AB InBev own beer 134 913 - 200 - -1 987 132 725 -1.5%
Revenue 14 210 - 121 151 500 14 740 3.6%
Cost of sales -5 698 98 - 50 105 -5 546 1.9%
Gross profit 8 511 -22 100 604 9 194 7.1%
SG&A -4 716 - 35 - 63 162 -4 652 3.4%
Other operating income/(expenses) 200 7 3 - 71 139 -34.4%
Normalized EBIT 3 995 - 50 41 695 4 681 17.6%
Normalized EBITDA 5 039 - 49 52 691 5 733 13.8%
Normalized EBITDA margin 35.5% 38.9% 353 bps
North America 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 31 912 137 - -1 939 30 109 -6.1%
Revenue 4 287 43 16 - 226 4 120 -5.3%
Cost of sales -1 579 - 26 -5 110 -1 500 7.0%
Gross profit 2 709 16 11 - 116 2 621 -4.3%
SG&A -1 183 - 15 -6 90 -1 115 7.6%
Other operating income/(expenses) 10 - - -7 3 -72.4%
Normalized EBIT 1 536 1 5 - 34 1 508 -2.2%
Normalized EBITDA 1 741 3 6 - 25 1 724 -1.4%
Normalized EBITDA margin 40.6% 41.8% 164 bps
Latin America West 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 27 152 - 21 - 881 28 012 3.2%
Revenue 2 161 - 47 193 2 400 8.9%
Cost of sales - 642 - -14 4 - 652 0.6%
Gross profit 1 518 1 33 196 1 748 12.9%
SG&A - 705 - 11 -17 - 30 - 764 -4.2%
Other operating income/(expenses) 22 6 1 - 33 -3 -
Normalized EBIT 835 -5 17 133 981 16.1%
Normalized EBITDA 991 -4 21 129 1 137 13.1%
Normalized EBITDA margin 45.9% 47.4% 173 bps
Latin America North 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 28 947 6 - -1 010 27 943 -3.5%
Revenue 2 081 -1 29 167 2 276 8.0%
Cost of sales - 881 - -9 - 25 - 916 -2.8%
Gross profit 1 198 - 20 142 1 360 11.8%
SG&A - 715 - 14 - 11 4 - 736 0.5%
Other operating income/(expenses) 95 -1 -1 - 20 74 -20.8%
Normalized EBIT 579 - 14 8 126 698 22.2%
Normalized EBITDA 782 - 14 10 128 906 16.7%
Normalized EBITDA margin 37.6% 39.8% 298 bps
ab-inbev.com 16
Annex 1
Latin America South 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 7 478 - - 333 7 811 4.5%
Revenue 677 - - 62 150 764 22.1%
Cost of sales - 225 -1 22 - 83 - 287 -36.9%
Gross profit 451 - - 40 67 478 14.8%
SG&A - 173 - 15 - 17 - 175 -10.1%
Other operating income/(expenses) 7 - - -4 2 -64.4%
Normalized EBIT 287 -2 - 25 45 305 15.8%
Normalized EBITDA 332 -1 - 30 57 359 17.3%
Normalized EBITDA margin 49.1% 46.9% -193 bps
EMEA 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 35 898 240 - - 310 35 828 -0.9%
of which AB InBev own beer 22 545 244 - - 114 22 675 -0.5%
Revenue 2 648 -5 114 119 2 876 4.5%
Cost of sales -1 213 - 10 - 43 16 -1 250 1.3%
Gross profit 1 435 - 14 70 135 1 626 9.5%
SG&A - 857 5 - 39 - 14 - 905 -1.7%
Other operating income/(expenses) 8 - - 25 33 -
Normalized EBIT 586 -9 32 146 755 25.4%
Normalized EBITDA 778 -8 38 160 969 20.8%
Normalized EBITDA margin 29.4% 33.7% 454 bps
Asia Pacific 3Q16 Scope Currency Organic 3Q17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 31 103 - 91 - 24 31 037 0.1%
Revenue 2 107 11 7 97 2 221 4.6%
Cost of sales - 911 - 10 -2 53 - 870 5.8%
Gross profit 1 196 1 4 150 1 351 12.5%
SG&A - 747 - 15 1 2 - 759 0.3%
Other operating income/(expenses) 41 - 1 - 22 20 -52.3%
Normalized EBIT 490 - 14 6 130 612 27.3%
Normalized EBITDA 668 - 15 8 95 755 14.4%
Normalized EBITDA margin 31.7% 34.0% 293 bps
Global Export and Holding 3Q16 Scope Currency Organic 3Q17 Organic
Companies Reference Base translation growth growth
Total volumes (thousand hls) 455 - 172 - 21 304 7.4%
Revenue 249 - 169 - 1 81 0.9%
Cost of sales - 246 144 2 30 - 70 29.7%
Gross profit 2 - 24 2 31 10 -
SG&A - 338 17 -6 129 - 198 41.8%
Other operating income/(expenses) 18 - 2 - 11 10 -59.1%
Normalized EBIT - 317 -8 -2 149 - 178 47.8%
Normalized EBITDA - 256 -8 - 147 - 117 58.7%
ab-inbev.com 17
Annex 2
AB InBev Worldwide 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 456 441 11 339 - -1 185 466 595 -0.3%
of which AB InBev own beer 381 022 - 527 - 442 380 938 0.1%
Revenue 39 736 88 429 1 590 41 844 4.1%
Cost of sales -15 764 24 - 175 - 304 -16 220 -2.0%
Gross profit 23 973 111 254 1 286 25 624 5.4%
SG&A -13 291 - 252 - 156 268 -13 431 2.0%
Other operating income/(expenses) 692 - 61 19 - 102 547 -16.2%
Normalized EBIT 11 374 - 203 117 1 452 12 741 13.0%
Normalized EBITDA 14 385 - 151 148 1 513 15 895 10.7%
Normalized EBITDA margin 36.2% 38.0% 230 bps
North America 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 90 351 348 - -3 433 87 265 -3.8%
Revenue 12 082 119 3 - 298 11 906 -2.5%
Cost of sales -4 481 - 77 -1 172 -4 387 3.8%
Gross profit 7 601 42 2 - 126 7 520 -1.7%
SG&A -3 383 - 46 -1 141 -3 289 4.2%
Other operating income/(expenses) 41 - - - 19 22 -46.4%
Normalized EBIT 4 259 -3 1 -4 4 253 -0.1%
Normalized EBITDA 4 857 1 1 13 4 873 0.3%
Normalized EBITDA margin 40.2% 40.9% 113 bps
Latin America West 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 79 686 - 71 - 1 585 81 200 2.0%
Revenue 6 284 -1 - 58 435 6 660 6.9%
Cost of sales -1 841 -1 23 - 59 -1 878 -3.2%
Gross profit 4 443 -1 - 35 376 4 782 8.5%
SG&A -2 119 - 36 24 -6 -2 136 -0.3%
Other operating income/(expenses) 100 - 60 -1 -9 31 -21.5%
Normalized EBIT 2 424 - 97 - 12 362 2 677 15.5%
Normalized EBITDA 2 894 - 95 - 17 353 3 135 12.6%
Normalized EBITDA margin 46.1% 47.1% 238 bps
Latin America North 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 85 869 1 - -1 377 84 493 -1.6%
Revenue 5 901 - 570 171 6 641 2.9%
Cost of sales -2 267 - - 235 - 235 -2 736 -10.4%
Gross profit 3 634 - 335 - 65 3 905 -1.8%
SG&A -1 938 - 32 - 192 16 -2 146 0.8%
Other operating income/(expenses) 286 -1 23 - 76 232 -26.7%
Normalized EBIT 1 983 - 34 166 - 125 1 990 -6.4%
Normalized EBITDA 2 543 - 34 220 - 124 2 605 -4.9%
Normalized EBITDA margin 43.1% 39.2% -323 bps
ab-inbev.com 18
Annex 2
Latin America South 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 22 297 - - 1 333 23 630 6.0%
Revenue 1 908 - - 148 527 2 287 27.6%
Cost of sales - 639 - 48 - 262 - 853 -41.0%
Gross profit 1 268 1 - 100 265 1 434 20.9%
SG&A - 495 -3 39 - 109 - 569 -22.0%
Other operating income/(expenses) 10 -1 - -4 5 -47.5%
Normalized EBIT 784 -4 - 62 151 870 19.4%
Normalized EBITDA 917 -4 - 72 183 1 025 20.1%
Normalized EBITDA margin 48.1% 44.8% -284 bps
EMEA 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 93 617 11 681 - 156 105 454 0.2%
of which AB InBev own beer 63 621 708 - 947 65 277 1.5%
Revenue 6 789 657 137 438 8 022 6.5%
Cost of sales -3 061 - 473 - 52 - 70 -3 656 -2.3%
Gross profit 3 729 183 85 369 4 366 10.0%
SG&A -2 283 - 178 - 57 - 87 -2 605 -3.8%
Other operating income/(expenses) 14 1 3 57 75 -
Normalized EBIT 1 460 6 31 339 1 836 23.6%
Normalized EBITDA 1 987 62 36 373 2 458 19.0%
Normalized EBITDA margin 29.3% 30.6% 340 bps
Asia Pacific 9M16 Scope Currency Organic 9M17 Organic
Reference Base translation growth growth
Total volumes (thousand hls) 83 265 - 111 - 450 83 605 0.5%
Revenue 5 765 39 - 74 348 6 077 6.0%
Cost of sales -2 597 - 33 42 88 -2 500 3.4%
Gross profit 3 168 5 - 32 436 3 577 13.8%
SG&A -2 029 - 33 31 23 -2 008 1.1%
Other operating income/(expenses) 167 - -3 - 63 102 -37.4%
Normalized EBIT 1 306 - 27 -4 397 1 671 31.0%
Normalized EBITDA 1 849 - 35 - 17 370 2 167 20.2%
Normalized EBITDA margin 32.1% 35.7% 425 bps
Global Export and Holding 9M16 Scope Currency Organic 9M17 Organic
Companies Reference Base translation growth growth
Total volumes (thousand hls) 1 357 - 509 - 101 948 11.9%
Revenue 1 006 - 724 - - 30 251 -10.8%
Cost of sales - 877 606 - 60 - 210 22.3%
Gross profit 129 - 118 - 30 41 -
SG&A -1 043 75 - 290 - 678 30.6%
Other operating income/(expenses) 73 -1 -3 12 81 16.8%
Normalized EBIT - 841 - 44 -3 332 - 555 38.4%
Normalized EBITDA - 663 - 45 -3 344 - 367 50.0%
ab-inbev.com 19
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