Wrap Text
Anheuser-Busch InBev reports Second Quarter 2018 and
Half Year 2018 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”)
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 growth figures and refer to 2Q18 versus the same period of last year. For
important notes and disclaimers please refer to page 14.
Anheuser-Busch InBev reports Second Quarter 2018 and
Half Year 2018 Results
HIGHLIGHTS
- Revenue: Revenue grew by 4.7% in the quarter, with revenue per hl growth of 4.0%. On a constant
geographic basis, revenue per hl grew by 4.5% driven by revenue management initiatives as well as
continued strong premium brand performances. In HY18, revenue grew by 4.7% with revenue per hl
growth of 4.5%. On a constant geographic basis, revenue per hl grew by 4.9%.
- Volume: Total volumes grew 0.8%, while own beer volumes grew by 0.9% and non-beer volumes were
up by 0.5%. Good growth in own beer volumes was achieved in Mexico and China, partially offset by
the US as well as South Africa, which cycled a particularly demanding comparable. In HY18, total
volumes were up 0.3% with own beer volumes up 0.7% and non-beer volumes down 3.4%.
- Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona,
accelerated their growth this quarter, up by 10.1% globally and by 16.7% outside of their home markets.
In HY18, the combined revenues of our global brands grew by 9.1% and by 14.6% outside of their
home markets.
- Cost of Sales (CoS): CoS increased by 4.7% in 2Q18 and by 4.2% on a per hl basis. On a constant
geographic basis, CoS per hl increased by 5.5% driven primarily by an increase in the year-over-year
FX and commodity prices as well as country mix, partially offset by synergy capture. In HY18, CoS
grew by 3.0% and by 2.8% on a per hl basis, while on constant geographic basis CoS per hl increased
by 3.4%.
- EBITDA: EBITDA grew by 7.0% with margin expansion of 85 bps to 39.7% as a result of topline growth
and aided by synergies and cost savings, partially offset by increased sales and marketing investments
associated with the 2018 FIFA World Cup RussiaTM. In HY18, EBITDA grew by 6.8% and EBITDA
margin expanded by 78 bps to 39.0%.
- Net finance results: Net finance costs (excluding non-recurring net finance costs) were 1 272 million
USD in 2Q18 as compared to 1 628 million USD in 2Q17. Net finance costs were 2 816 million USD in
HY18 as compared to 3 120 million USD in HY17.
- Income taxes: Normalized effective tax rate increased to 24.8% in 2Q18 from 21.3% in 2Q17, and
increased to 26.3% in HY18 from 20.9% in HY17.
ab-inbev.com 1
- Profit: Normalized profit attributable to equity holders of AB InBev was 2 163 million USD in 2Q18 as
compared to 1 872 million USD in 2Q17. Normalized profit attributable to equity holders of AB InBev
increased to 3 605 million USD in HY18 from 3 331 million USD in HY17.
- Earnings per share: Normalized earnings per share (EPS) increased by 15.8% from 0.95 USD in
2Q17 to 1.10 USD in 2Q18 and by 8.3% from 1.69 USD in HY17 to 1.83 USD in HY18.
- Combination with SAB: The business integration is progressing well, with synergies and cost savings
of 199 million USD captured during 2Q18 and 359 million USD captured during HY18.
- 2018 Half Year Financial Report: The report is available on our website at www.ab-inbev.com.
Figure 1. Consolidated performance (million USD)
2Q17 2Q18 Organic
growth
Total Volumes (thousand hls) 157 679 143 685 0.8%
AB InBev own beer 130 483 127 632 0.9%
Non-beer volumes 25 889 14 733 0.5%
Third party products 1,306 1 320 2.0%
Revenue 14 182 14 014 4.7%
Gross profit 8 738 8 818 4.8%
Gross margin 61.6% 62.9% 2 bps
Normalized EBITDA 5 354 5 568 7.0%
Normalized EBITDA margin 37.8% 39.7% 85 bps
Normalized EBIT 4 338 4 509 6.7%
Normalized EBIT margin 30.6% 32.2% 58 bps
Profit attributable to equity holders of AB InBev 1 502 1 937
Normalized profit attributable to equity holders of AB InBev 1 872 2 163
Earnings per share (USD) 0.76 0.98
Normalized earnings per share (USD) 0.95 1.10
HY17 HY18 Organic
growth
Total Volumes (thousand hls) 305 550 278 515 0.3%
AB InBev own beer 248 212 245 983 0.7%
Non-beer volumes 55 132 30 074 -3.4%
Third party products 2 206 2 458 12.0%
Revenue 27 104 27 087 4.7%
Gross profit 16 430 16 903 5.8%
Gross margin 60.6% 62.4% 61 bps
Normalized EBITDA 10 162 10 557 6.8%
Normalized EBITDA margin 37.5% 39.0% 78 bps
Normalized EBIT 8 059 8 444 8.0%
Normalized EBIT margin 29.7% 31.2% 97 bps
Profit attributable to equity holders of AB InBev 2 908 2 955
Normalized profit attributable to equity holders of AB InBev 3 331 3 605
Earnings per share (USD) 1.48 1.50
Normalized earnings per share (USD) 1.69 1.83
ab-inbev.com 2
Figure 2. Volumes (thousand hls)
2Q17 Scope Organic 2Q18 Organic growth
growth Total Own beer
Volume volume
North America 31 320 28 -1 536 29 813 -4.9% -5.0%
Latin America West 27 657 -1 1 292 28 948 4.7% 5.4%
Latin America North 26 131 - 64 528 26 595 2.0% 2.2%
Latin America South 6 730 4 318 7 052 4.8% 6.1%
EMEA 36 706 -15 053 - 312 21 340 -1.4% -1.2%
Asia Pacific 28 885 52 868 29 804 3.0% 3.1%
Global Export and Holding Companies 250 - 153 35 132 35.6% 35.6%
AB InBev Worldwide 157 679 -15 187 1 193 143 685 0.8% 0.9%
HY17 Scope Organic HY18 Organic growth
growth Total Own beer
Volume volume
North America 57 156 61 -2 591 54 627 -4.5% -4.6%
Latin America West 53 188 - 21 3 443 56 609 6.5% 7.9%
Latin America North 56 550 - 125 -2 279 54 146 -4.0% -2.4%
Latin America South 15 819 21 825 16 666 5.2% 6.0%
EMEA 69 625 -27 795 59 41 889 0.1% 0.1%
Asia Pacific 52 568 66 1 467 54 101 2.8% 2.4%
Global Export and Holding Companies 644 - 153 - 14 478 -2.9% -2.9%
AB InBev Worldwide 305 550 -27 946 911 278 515 0.3% 0.7%
ab-inbev.com 3
MANAGEMENT COMMENTS
Our business delivered another solid quarter, with improved trends in many of our key markets, achieving
revenue growth of 4.7% and total volume growth of 0.8%. Revenue growth was broad-based, primarily
driven by Brazil, Mexico, China and Western Europe, and strengthened by continued premiumization in the
majority of our markets. Our High End Company (a business unit made up of a portfolio of global, specialty
and craft brands across 22 countries) continues to lead the way with both revenue and EBITDA growing by
more than 20% in HY18.
The global trend of premiumization was also evident in the continued success of our global brand portfolio.
Growth of our global brands accelerated this quarter, with revenues up 10.1% globally and 16.7% outside
of the brands’ home markets. Budweiser revenues grew by 4.1% globally and by 10.1% outside of the US,
driven by strong growth in Brazil, China and the UK, as well as many new markets following the brand’s
activation as the global sponsor of the 2018 FIFA World Cup RussiaTM. Stella Artois revenues grew by
9.0%, with good performances in Brazil, the UK and Argentina. Corona had another great quarter, with
revenues growing by 21.9% globally and by 42.6% outside of Mexico, led by China, Western Europe and
South Africa. All three brands continue to perform well across both mature and emerging markets, and we
continue to see further growth opportunities as we scale them up in new markets.
Our 2018 FIFA World Cup RussiaTM sponsorship was our most ambitious and successful ever, for both
Budweiser and AB InBev. As the official beer sponsor, we activated our Budweiser campaign “Light Up
FIFA World CupTM” in more than 50 countries. Football is a passion point in many of the new markets in
which Budweiser has expanded following our combination with SAB, and this was a unique opportunity to
engage with 3.2 billion football fans (according to FIFA) around the world and drive brand awareness. As a
result of our global campaign and innovative digital-first approach to traditional sports sponsorship assets,
Budweiser was the leading brand in social media conversations globally during the tournament.
Additionally, due to an incredible execution in Russia, we sold more beer in the stadiums than in the 2014
FIFA World Cup BrazilTM. We also activated our local brands in more than 40 countries, connecting with
national pride in their home markets and contributing to accelerated volume growth across our portfolio.
EBITDA grew this quarter by 7.0% with margin expansion of 85 bps to 39.7%. This was driven by topline
growth, premiumization, enhanced synergy capture and effective cost management, though partially offset
by higher sales and marketing investments ahead of the 2018 FIFA World Cup RussiaTM, as expected. Our
integration with SAB continues to go as planned with synergy capture and cost savings of 199 million USD
in the quarter.
Our net debt increased from 104.4 billion USD as of 31 December 2017 to 108.8 billon USD as of 30 June
2018, consistent with prior increases in the first half of the year, given that the majority of our cash flow is
generated in the second half of the year. Our net debt to normalized EBITDA ratio increased from 4.80x as
of 31 December 2017 to 4.87x as of 30 June 2018, as a result of our cash flow seasonality and adverse
currency fluctuations in our EBITDA translation. Deleveraging to around 2x remains our commitment, and
we remain on track in our deleveraging path.
Following our successful combination with SAB, today we are also announcing some organizational
changes to enhance our focus on topline growth and value creation. All changes will become effective on
1 January 2019, and will also be reflected in our financial statements as of that date. To learn more, please
read our press release available at http://www.ab-inbev.com/news/press-releases/global-press-
releases/2018/07/anheuser-busch-inbev-announces-a-new-organization-for-future-gro.html.
We continue to expect our growth to accelerate in the second half of this year as we scale up learnings
from the category expansion framework and continue to share best practices across our markets.
Furthermore, our portfolio of global and high end brands positions us well to drive category growth across
our diverse geographic footprint in a sustainable way.
ab-inbev.com 4
United States
Our US revenues decreased by 3.1% in 2Q18 and by 2.8% in HY18. We saw continued growth in revenue
per hl of 2.1% (2.0% in HY18), driven by revenue management initiatives and favorable brand mix, though
this was offset by lower volumes. Our sales-to-retailers (STRs) decreased by 3.1% in 2Q18, impacted by a
weaker industry, which declined by 2.4%, of which 1.3pp is due to the timing of Easter and the Fourth of
July. However, sales-to-wholesalers (STWs), which drive our financials, were down by 5.1%, as we
continue to optimize our logistics. In HY18, our STRs were down by 3.2% and our STWs were down by
4.8%, and we continue to expect STRs and STWs to converge on a full year basis.
We delivered our best quarterly market share performance in almost four years with a share loss of 35 bps,
as our performance offset almost half of the negative impact of the industry segment mix shift. In HY18, our
total market share declined by 45 bps.
We saw accelerated growth of our Above Premium brands this quarter, which gained 100 bps of share. Our
portfolio premiumization strategy continues to be supported by the growth of Michelob Ultra, which marked
its thirteenth consecutive quarter as the largest share gainer in the US, and also by several successful
innovations, including Michelob Ultra Pure Gold, Bud Light Orange and the Budweiser Reserve series.
Premium and Premium Light brands remain under pressure, as consumers trade-up to higher price tiers
within the industry, which contributed to Bud Light and Budweiser losing 85 bps and 40 bps of total market
share, respectively, in 2Q18. Within their respective segments, however, Bud Light has reduced its share
loss for four consecutive quarters and Budweiser maintained flat share of segment for two consecutive
quarters.
Our Value portfolio saw improved share trends within the quarter and remains an important and profitable
segment of our business.
Our EBITDA declined by 7.4%, primarily driven by the temporary mismatch between STRs and STWs,
which explains approximately half of this decline. EBITDA margin contracted by 185 bps to 40.1%, impacted
by an increase in the year-over-year price of commodities and higher distribution expenses due to increased
freight costs, a trend that we will cycle in the second half of the year. In HY18, EBITDA decreased by 6.3%
with margin contraction of 147 bps to 39.6%.
Mexico
Mexico delivered another quarter of very strong results, with double-digit revenue growth fueled by high
single digit volume growth and revenue management initiatives, despite a tough prior year comparable due
to the timing of Easter. In HY18, revenue and volume both grew by double-digits.
Our full brand portfolio continued to deliver solid results, with growth coming from all brands and regions
across the country. Leveraging the learnings from the category expansion framework, classic lagers, easy
drinking lagers and richer beer profiles have been nurtured and priced accordingly, targeted to enhance the
core segment, while premiumizing via core plus and international premium brands such as Stella Artois and
Michelob Ultra. Our no- and low-alcohol space continued to evolve well, helping us move closer to our
global goal to have 20% of our beer volume in the space by 2025.
Strong topline growth resulted in 16.8% EBITDA growth and margin expansion of 216 bps to 45.6%, despite
higher costs of sales as a result of unfavorable foreign exchange impact on transactional costs, while
additional capacity has helped us meet increasing demand. In HY18, EBITDA grew by 16.4% with margin
expansion of 79 bps to 43.5%.
ab-inbev.com 5
Colombia
Our Colombian business also performed well with revenue growth of 7.0%. Beer volumes were up by 1.1%,
and non-beer volumes grew slightly by 0.4%, with revenue per hl growth of 5.9%. This performance was
delivered in a quarter which was challenged by the timing of Easter as well as four evenings worth of “dry
days” on weekends leading up to the two rounds of presidential elections. Against this backdrop, we
estimate that beer has gained a further 25 bps of share of total alcohol this quarter. In HY18, revenue grew
by 9.4% with beer volumes up by 4.5% and non-beer volumes up by 1.0%.
Beer volume growth was underpinned by global as well as core brands. We saw triple-digit growth of our
global brand portfolio, driven by Budweiser on the back of the 2018 FIFA World Cup RussiaTM activations.
Aguila also recorded very strong growth benefiting from the activations associated with the national team’s
participation in the tournament.
Our EBITDA grew by 8.0% with almost 50 bps of margin expansion. This was driven by strong topline
performance and further synergy delivery, partially offset by increased investment behind our brands. In
HY18, EBITDA grew by mid-teens with margin expansion of over 200 bps.
Brazil
Revenue increased by 9.4%, with 7.7% revenue per hl expansion due to annualization of the 3Q17 price
increases. With the negative impact from the nationwide truck drivers’ strike offset by the benefits of the
2018 FIFA World Cup RussiaTM, total volumes were up 1.5% with beer volume growth of 1.7% in a broadly
flat market, and non-beer volume growth of 1.0% in a market that was down by mid-single digits. In HY18,
revenue was up by 3.3% with total volume declines of 5.3%.
Brahma, the local sponsor of the 2018 FIFA World Cup RussiaTM in Brazil, performed well this quarter with
a strong volume performance resulting from tournament activations. In the core plus segment, our portfolio
posted very strong growth driven by Bohemia and Brahma Extra, and in addition, we launched Skol Hops,
brewed with aromatic hops to provide a unique combination of lightness and flavor. Our premium portfolio
continues to perform ahead of the industry, with our global brand portfolio growing by more than 30% and
led by Budweiser.
EBITDA grew by 16.1% in 2Q18, with margin expansion of 238 bps to 41.3%. This result was driven by
revenue growth and CoS per hl increases below inflation, partially offset by higher marketing expenses
associated with timing of investments related to the 2018 FIFA World Cup RussiaTM. In HY18, our EBITDA
grew by 10.3% with margin expansion of 266 bps to 41.5%.
South Africa
As expected, 2Q18 was a challenging quarter. Revenue declined by mid-single digits, with beer volumes
down by mid-teens as we were cycling a tough comparable (2Q17 volume growth of double-digits due to
timing of price increases and Easter). In addition, a VAT increase as of 1 April 2018 and numerous petrol
price increases had a negative impact on consumer disposable income. In HY18, revenue was flat with
beer volume down by high single digits.
Robust revenue per hl growth in 2Q18 of more than 10% was driven by the annualization of the 1 July 2017
price increase and this year’s 1 March 2018 price increase, which followed the above-inflation excise tax
increases.
ab-inbev.com 6
In the quarter, Castle Lite was launched in a new resealable bulk pack aimed at driving growth in the in-
home occasion, which has been well-received by consumers. Our high end portfolio grew by triple-digits
with a good contribution from the recently launched Budweiser. The brand’s awareness and trial benefited
from a major consumer engagement campaign linked to our global 2018 FIFA World Cup RussiaTM
activation.
EBITDA grew by low-single digits with further margin expansion of over 300 bps. In HY18, EBITDA grew
by mid-single digits with margin expansion of nearly 200 bps.
China
Revenue grew by 6.8% in 2Q18 with volume growth of 3.0% and revenue per hl growth of 3.7%. In HY18,
revenue grew 5.7% with revenue per hl up 3.3% and volume growth of 2.4%.
Our momentum accelerated in the second quarter, delivering one of our best volume and share
performances in the last three years. Budweiser resumed volume growth this quarter on the back of a strong
2018 FIFA World Cup RussiaTM activation. Our brands continue to lead the way in e-commerce with a
higher share online than offline. Our High End Company once again recorded triple-digit volume growth off
of a meaningful base, led by Corona. Our estimated beer market share continues to grow, now over 20%
for the first six months of the year.
The business delivered organic EBITDA growth of 6.2%, with a margin contraction of 20 bps to 35.6%,
driven by the phasing of marketing spend associated with the 2018 FIFA World Cup RussiaTM. In HY18,
EBITDA grew by 8.2% with margin expansion of 82 bps to 35.5%.
Highlights from our other markets
In Canada, volumes and revenues declined by low single digits as a result of industry weakness and
industry segment mix shift, due to increased competitive dynamics in the value segment. Our trade up
strategy is delivering strong results, with the High End Company growing topline ahead of the industry, led
by double-digit volume growth for our local Craft brands, and share gains from Corona and Stella Artois. Our
focus core brands also continue to deliver strong results, with both Bud Light and Michelob Ultra among
the fastest growing brands in Canada.
Peru recorded mid-single digit revenue growth on low-single digit beer volume increases. We saw solid
growth in all three global brands, as well as a strong Cristal brand activation in support of the national team
on their way to the 2018 FIFA World Cup RussiaTM. Ecuador delivered double-digit revenue growth
alongside volume growth of high-single digits. This resulted in share of total alcohol gains of 80 bps as we
continue to focus on growing the beer category by expanding into new occasions.
In Latin America South, volumes grew by mid-single digits with growth across the region. In Argentina,
growth was driven by the repositioning of the two largest core brands, Quilmes Clásica and Brahma. Each
continued to grow volumes as a result of a successful application of the category expansion framework.
Our global brand volumes are up by double-digits throughout the region in HY18, and we are scaling up
Budweiser in Argentina now that it has rejoined our portfolio in 2Q18.
Within EMEA, Western Europe grew revenue by mid-single digits, outperforming the industry with a strong
execution associated with the 2018 FIFA World Cup RussiaTM. Our global brands grew volumes by double-
digits, and Budweiser’s growth was supported by tournament activations. Corona benefited from Casa
Corona, designed as places to escape from city stress that opened in cities across Europe, as well as an
“Ocean Week” campaign in the UK aimed at raising awareness of marine plastic pollution. In the UK, Bud
ab-inbev.com 7
Light grew volumes by double-digits, leading the way for our low-alcohol beer initiatives and contributing to
the UK’s double-digit revenue growth, despite the market cycling a tough comparable. On 30 March 2018,
we completed the 50:50 merger of our and Anadolu Efes' existing Russia and Ukraine businesses. The
combined business is fully consolidated in the Anadolu Efes financial accounts. As a result of the
transaction, we stopped consolidating our Russia and Ukraine businesses and account for our investment
in AB InBev Efes under the equity method as of that date. In Africa excluding South Africa, our own beer
volumes grew by high single digits, with double-digit growth in the key markets of Nigeria, Zambia and
Mozambique partially offset by declines in Tanzania and Uganda, as both suffered from heavy floods.
Australia continues to achieve strong commercial gains with revenue growing by mid-single digits during
the quarter. This was driven by Great Northern, which remains a key engine of growth within the easy
drinking lager segment. Additionally, the High End Company continues to be a strong contributor to topline
growth, led by all three of our global brands. We are working to further accelerate our global brand portfolio
and this quarter we launched Corona Ligera, a premium mid-strength version of Corona that supports our
low-alcohol beer initiatives. Additionally, Budweiser was brewed locally for the first time and played a key
role in the 2018 FIFA World Cup RussiaTM activations. Our craft portfolio continues to perform well with
double-digit gains on the back of recent acquisitions.
2018 OUTLOOK
(i) Overall Performance: While recognizing volatility in some of our key markets, we expect to deliver
strong Revenue and EBITDA growth in FY18 driven by the solid performance of our brand portfolio
and strong commercial plans. Our growth model is now far more focused on category development,
and as a consequence, we expect to deliver revenue per hl growth ahead of inflation based on
premiumization and revenue management initiatives, while keeping costs below inflation. We remain
confident that growth will accelerate in the balance of the year.
(ii) Synergies: We maintain our 3.2 billion USD synergy and cost savings expectation on a constant
currency basis as of August 2016. From this total, 547 million USD was reported by former SAB as
of 31 March 2016, and 1 945 million USD was captured between 1 April 2016 and 30 June 2018. The
balance of roughly 700 million USD is expected to be captured by October 2020.
(iii) Net Finance Costs: We expect the average net debt coupon in FY18 to be around 3.7%. Net pension
interest expenses and accretion expenses are expected to be approximately 30 and 100 million USD
per quarter, respectively. Net finance costs will continue to be impacted by any gains and losses
related to the hedging of our share-based payment programs.
(iv) Effective Tax Rate: We expect the normalized ETR in FY18 to be in the range of 24% to 26%,
excluding any future gains and losses relating to the hedging of our share-based payment programs.
This guidance includes the impact of the US tax reform which introduced a lower US corporate tax
rate, offset by a broader tax base and new limitations on certain business deductions. The ETR
guidance is based upon available interpretation of the US tax reform act and may change as the
company receives additional clarification and implementation guidance.
(v) Net Capital Expenditure: We expect net capital expenditure of between 4.0 and 4.5 billion USD in
FY18.
(vi) Debt: Approximately 42% of our 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.
(vii) 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.
ab-inbev.com 8
CONSOLIDATED INCOME STATEMENT
Figure 3. Consolidated income statement (million USD)
2Q17 2Q18 Organic
growth
Revenue 14 182 14 014 4.7%
Cost of sales -5 444 -5 196 -4.7%
Gross profit 8 738 8 818 4.8%
SG&A -4 551 -4 493 -3.6%
Other operating income/(expenses) 151 183 24.3%
Normalized profit from operations (normalized EBIT) 4 338 4 509 6.7%
Non-recurring items above EBIT -66 -100
Net finance income/(cost) -1 628 -1 271
Non-recurring net finance income/(cost) - 310 - 164
Share of results of associates 70 37
Income tax expense - 575 - 761
Profit from continuing operations 1 829 2 248
Discontinued operations results - -
Profit 1 829 2 248
Profit attributable to non-controlling interest 327 311
Profit attributable to equity holders of AB InBev 1 502 1 937
Normalized EBITDA 5 354 5 568 7.0%
Normalized profit attributable to equity
holders of AB InBev 1 872 2 163
Figure 3. Consolidated income statement (million USD)
HY17 HY18 Organic
growth
Revenue 27 104 27 087 4.7%
Cost of sales -10 674 -10 184 -3.0%
Gross profit 16 430 16 903 5.8%
SG&A -8 779 -8 791 -3.1%
Other operating income/(expenses) 408 332 -7.0%
Normalized profit from operations (normalized EBIT) 8 059 8 444 8.0%
Non-recurring items above EBIT - 287 - 196
Net finance income/(cost) -3 120 -2 816
Non-recurring net finance income/(cost) - 211 - 494
Share of results of associates 124 93
Income tax expense - 994 -1 436
Profit from continuing operations 3 572 3 595
Discontinued operations results 28 -
Profit 3 600 3 595
Profit attributable to non-controlling interest 692 640
Profit attributable to equity holders of AB InBev 2 908 2 955
Normalized EBITDA 10 162 10 557 6.8%
Normalized profit attributable to equity
holders of AB InBev 3 331 3 605
Revenue
Consolidated revenue grew by 4.7% in 2Q18, with revenue per hl growth of 4.0%, driven by revenue
management initiatives as well as continued strong premium brand performance. On a constant geographic
basis, revenue per hl grew by 4.5%. In HY18, revenue grew by 4.7%, with revenue per hl growth of 4.5%
on an organic basis and 4.9% on a constant geographic basis.
ab-inbev.com 9
Cost of Sales (CoS)
CoS increased by 4.7% in 2Q18 and by 4.2% on a per hl basis. On a constant geographic basis, CoS per
hl increased by 5.5% driven by an increase in the year-over-year FX and commodity prices as well as
country mix, partially offset by synergy delivery. In HY18, total CoS increased by 3.0%, by 2.8% on a per
hl basis, and by 3.4% per hl on a constant geographic basis.
Selling, General and Administrative Costs (SG&A)
SG&A grew by 3.6%, with synergy capture and good cost control partially offset by increased sales and
marketing investments associated with the 2018 FIFA World Cup RussiaTM. In HY18, SG&A grew by 3.1%.
Other operating income/(expenses)
Other operating income increased organically by 24.3% in 2Q18 due to calendarization. In HY18, it declined
by 7.0%.
Non-recurring items above EBIT
Figure 4. Non-recurring items above EBIT (million USD)
2Q17 2Q18 HY17 HY18
Restructuring - 99 - 83 - 288 - 137
Acquisition costs / Business combinations -8 - 23 - 25 - 38
Business and asset disposal (including impairment losses) 41 6 26 - 21
Impact on profit from operations - 66 - 100 - 287 - 196
Normalized profit from operations in 2Q18 excludes negative non-recurring items of 100 million USD,
primarily related to the one-off restructuring costs linked to the SAB integration.
Figure 5. Net finance income/(cost) (million USD)
2Q17 2Q18 HY17 HY18
Net interest expense - 973 - 986 -2 055 -1 955
Net interest on net defined benefit liabilities - 26 - 24 - 55 - 48
Accretion expense - 134 - 97 - 303 - 177
Mark-to-market - 265 - 16 - 135 - 258
Other financial results - 230 - 148 - 573 - 378
Net finance income/(cost) -1 628 -1 272 -3 120 -2 816
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
2Q17 2Q18 HY17 HY18
Share price at the start of the period (Euro) 102.90 89.28 100.55 93.13
Share price at the end of the period (Euro) 96.71 86.50 96.71 86.50
Number of equity derivative instruments at the end of the period (millions) 47.1 46.9 47.1 46.9
ab-inbev.com 10
Non-recurring net finance income/(cost)
Figure 7. Non-recurring net finance income/(cost) (million USD)
2Q17 2Q18 HY17 HY18
Mark-to-market (Grupo Modelo combination) - 125 - 10 - 71 - 127
Early termination fee of Bonds - - 146 - - 244
Other mark-to-market - 114 -9 - 69 - 123
Other - 71 - - 71 -
Non-recurring net finance income/(cost) - 310 - 165 - 211 - 494
Non-recurring net finance costs in 2Q18 include mark-to-market losses on derivative instruments entered
into to hedge the shares issued in relation to the Grupo Modelo and SAB combinations, as well as 146
million USD resulting from premiums paid on the early termination of certain bonds.
The number of shares covered by the hedging of the deferred share instrument and the restricted shares
are shown in figure 8, together with the opening and closing share prices.
Figure 8. Non-recurring equity derivative instruments
2Q17 2Q18 HY17 HY18
Share price at the start of the period (Euro) 102.90 89.28 100.55 93.13
Share price at the end of the period (Euro) 96.71 86.50 96.71 86.50
Number of equity derivative instruments at the end of the period (millions) 45.3 45.5 45.3 45.5
Income tax expense
Figure 9. Income tax expense (million USD)
2Q17 2Q18 HY17 HY18
Income tax expense 575 761 994 1 436
Effective tax rate 24.7% 25.6% 22.4% 29.1%
Normalized effective tax rate 21.3% 24.8% 20.9% 26.3%
Our normalized effective tax rate increased to 24.8% in 2Q18 from 21.3% in 2Q17, and increased to 26.3%
in HY18 from 20.9% in HY17. This was mainly due to country mix, as well as additional, non-deductible
mark-to-market losses and changes in tax legislation in some of the countries in which we operate.
Normalized Profit and Profit
Figure 10. Normalized Profit attribution to equity holders of AB InBev (million USD)
2Q17 2Q18 HY17 HY18
Profit attributable to equity holders of AB InBev 1 502 1 937 2 908 2 955
Non-recurring items, before taxes 66 100 287 197
Non-recurring finance (income)/cost, before taxes 309 164 211 494
Non-recurring taxes - - 42 - 37 - 45
Non-recurring non-controlling interest -5 4 -9 3
Profit from discontinued operations - - - 28 -
Normalized profit attributable to equity holders of AB InBev 1 872 2 163 3 331 3 605
Normalized profit attributable to equity holders of AB InBev excluding
mark-to-market 2 138 2 179 3 466 3 863
ab-inbev.com 11
Normalized and Basic EPS
Figure 11. Earnings per share (USD)
2Q17 2Q18 HY17 HY18
Basic earnings per share 0.76 0.98 1.48 1.50
Non-recurring items, before taxes 0.03 0.05 0.15 0.10
Non-recurring finance (income)/cost, before taxes 0.16 0.08 0.11 0.25
Non-recurring taxes - -0.02 -0.02 -0.02
Non-recurring non-controlling interest - - - -
Profit from discontinued operations - - -0.01 -
Normalized earnings per share 0.95 1.10 1.69 1.83
Normalized earnings per share excluding mark-to-market 1.09 1.10 1.76 1.96
Figure 12. Key components - Normalized Earnings per share in USD
2Q17 2Q18 HY17 HY18
Normalized EBIT 2.20 2.29 4.09 4.29
Mark-to-market (share-based payment programs) -0.13 -0.01 -0.07 -0.13
Net finance cost -0.70 -0.64 -1.52 -1.30
Income tax expense -0.29 -0.41 -0.52 -0.75
Associates & non-controlling interest -0.13 -0.14 -0.29 -0.28
Normalized EPS 0.95 1.10 1.69 1.83
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
2Q17 2Q18 HY17 HY18
Profit attributable to equity holders of AB InBev 1 502 1 937 2 908 2 955
Non-controlling interests 327 311 692 640
Profit 1 829 2 248 3 600 3 595
Discontinued operations results - - -28 -
Profit from continuing operations 1 829 2 248 3 572 3 595
Income tax expense 575 761 994 1 436
Share of result of associates - 70 - 37 - 124 - 93
Net finance (income)/cost 1 628 1 271 3 120 2 816
Non-recurring net finance (income)/cost 310 164 211 494
Non-recurring items above EBIT (incl. non-recurring impairment) 66 100 287 196
Normalized EBIT 4 338 4 509 8 059 8 444
Depreciation, amortization and impairment 1 016 1 059 2 103 2 113
Normalized EBITDA 5 354 5 568 10 162 10 557
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
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.
ab-inbev.com 12
FINANCIAL POSITION
Figure 14. Cash Flow Statement (million USD)
HY17 HY18
Operating activities
Profit of the period 3 600 3 595
Interest, taxes and non-cash items included in profit 6 379 6 752
Cash flow from operating activities before changes in working capital
and use of provisions 9 979 10 347
Change in working capital -2 352 -2 298
Pension contributions and use of provisions - 288 - 282
Interest and taxes (paid)/received -3 381 -4 583
Dividends received 60 38
Cash flow from operating activities 4 018 3 222
Investing activities
Net capex -1 579 -1 972
Net of tax proceeds from SAB transaction-related divestitures 5 130 - 430
Acquisition and sale of subsidiaries, net of cash acquired/disposed of - 448 - 72
Proceeds from the sale/(acquisition) of investment in short-term debt securities 2 788 1 299
Other 223 - 75
Cash flow from investing activities 6 114 -1 250
Financing activities
Dividends paid -4 475 -5 132
Net (payments on)/proceeds from borrowings -5 239 1 703
Other (including purchase of non-controlling interest) - 361 -1 210
Cash flow from financing activities -10 075 -4 640
Net increase/(decrease) in cash and cash equivalents 57 -2 668
HY18 recorded a decrease in cash and cash equivalents of 2 668 million USD compared to an increase of
57 million USD in HY17, with the following movements:
- Our cash flow from operating activities reached 3 222 million USD in the first half of 2018 compared to
4 018 million USD in the first half of 2017. The decrease results mainly from the calendarization of tax
payments in 2018 compared to 2017 and the payment in 2018 of taxes related to prior periods. Changes
in working capital in the first half of 2018 and 2017 reflect higher working capital levels at the end of
June than at year-end as a result of seasonality.
- Net cash outflow from investing activities was 1 250 million USD in the first half of 2018 as compared
to a net cash inflow of 6 114 million USD in the first half of 2017. 2017 cash flow from investing activities
mainly reflected the proceeds from the announced SAB-related divestitures completed during 2017,
net of taxes paid in 2017 on prior year divestitures, which were not repeated in the first half of 2018.
- The cash outflow from our financing activities amounted to 4 640 million USD in the first half of 2018,
as compared to a cash outflow of 10 075 million USD in the first half of 2017. During the first half of
2017, we repaid 8 billion USD outstanding under the Term Loan B. This Term Loan was the remaining
balance from the 75 billion USD senior facilities raised in October 2015 in connection with the
combination with SAB.
ab-inbev.com 13
Our net debt increased from 104.4 billion USD as of 31 December 2017 to 108.8 billon USD as of 30 June
2018, consistent with prior increases in the first half of the year, given that the majority of our cash flow is
generated in the second half of the year.
Our net debt to normalized EBITDA ratio increased from 4.80x as of 31 December 2017 to 4.87x as of 30
June 2018, as a result of our cash flow seasonality and adverse currency fluctuations in our EBITDA
translation. The net debt to EBITDA calculation excludes the EBITDA from CCBA for the 12-month period
ending 31 December 2017. Deleveraging to around 2x remains our commitment. We remain on track in our
deleveraging path.
We will continue to proactively manage our debt portfolio, of which 93% holds a fixed-interest rate, 42% is
denominated in currencies other than USD, and maturities are well-distributed across the next several
years.
In addition to a very comfortable debt maturity profile and strong cash flow generation, as of 30 June 2018
we had total liquidity of 16.9 billion USD, which consisted of 9.0 billion USD available under committed long-
term credit facilities and 7.9 billion USD of cash, cash equivalents and short-term investments in debt
securities less bank overdrafts. Although we may borrow such amounts to meet our liquidity needs, we
principally rely on cash flows from operating activities to fund our continuing operations.
Figure 15. Terms and debt repayment schedule as of 30 June 2018 (billion USD)
Please refer to the company's website to view the graph in Figure 15. 75.9
70.7
18.5 17.8
10.3 9.5 10.7
7.4 6.0 6.5
1 year or less 1-2 years 2-3 years 3-5 years More than 5 years
31 December 2017 30 June 2018
RECENT EVENTS
Argentina Peso devaluation
In May 2018, the Argentinean peso underwent a severe devaluation. In 2017, the Argentinean operations
represented 3.6% of our consolidated revenue and 4.1% of our consolidated normalized EBITDA. The
Argentinean full year 2017 and half year 2018 results were translated at an average rate of 16.580667 and
20.303664 Argentinean pesos per US dollar, respectively. We are assessing the requirements to apply IAS
29 Financial Reporting in Hyperinflationary Economies in subsequent reporting periods.
ab-inbev.com 14
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. On 30 March 2018 the 50:50 merger of AB InBev's and Anadolu
Efes' existing Russia and Ukraine businesses has completed. The combined business is fully consolidated in the Anadolu Efes
financial accounts. As a result of this transaction, AB InBev stopped consolidating its Russia and Ukraine businesses and accounts
for its investment in AB InBev Efes under the equity method, as of that date. The results of the former SAB 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.
2Q18 and HY18 EPS is based upon a weighted average of 1,975 million shares compared to a weighted average of 1,970 million
shares for 2Q17 and HY17.
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 and 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 19 March 2018. 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 has
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.
NOTES
The second quarter 2018 (2Q18) and half year (HY18) 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 six months ended 30 June 2018, 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 6, 8 and 12 have been extracted from
the underlying accounting records as of and for the six months ended 30 June 2018 (except for the volume information).
ab-inbev.com 15
CONFERENCE CALL AND WEBCAST
Investor Conference call and Webcast on Wednesday, 26 July 2018:
3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode)
https://bit.ly/2NpRkA0
Conference call (with interactive Q&A)
https://bit.ly/2uGfb9e
ANHEUSER-BUSCH INBEV CONTACTS
Media Investors
Pablo Jimenez Lauren Abbott
Tel: +1 212 573 9289 Tel: +1 212 573 9287
E-mail: pablo.jimenez@gmodelo.com.mx E-mail: lauren.abbott@ab-inbev.com
Aimee Baxter Mariusz Jamka
Tel: +1 718 650 4003 Tel: +32 16 276 888
E-mail: aimee.baxter@ab-inbev.com E-mail: mariusz.jamka@ab-inbev.com
Ingvild Van Lysebetten
Tel: +32 16 276 608
E-mail: ingvild.vanlysebetten@ab-inbev.com
26 July 2018
JSE 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 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®, Cristal®, Harbin®, Jupiler®, Michelob Ultra®, Modelo Especial®,
Quilmes®, Victoria®, Sedrin®, 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 180,000 employees based in nearly 50 countries worldwide. For 2017, AB InBev’s reported
revenue was 56.4 billion USD (excluding JVs and associates).
ab-inbev.com 16
Annex 1
AB InBev Worldwide Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 157 679 -15 187 - 1 193 143 685 0.8%
of which AB InBev own beer 130 483 -3 939 - 1 088 127 632 0.9%
Revenue 14 182 - 766 - 37 635 14 014 4.7%
Cost of sales -5 444 466 15 - 232 -5 196 -4.7%
Gross profit 8 738 - 300 - 22 403 8 818 4.8%
SG&A -4 551 217 -5 - 154 -4 493 -3.6%
Other operating income/(expenses) 151 - 18 16 34 183 24.3%
Normalized EBIT 4 338 - 101 - 12 284 4 509 6.7%
Normalized EBITDA 5 354 - 139 - 14 367 5 568 7.0%
Normalized EBITDA margin 37.7% 39.7% 85 bps
North America Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 31 320 28 - -1 536 29 813 -4.9%
Revenue 4 271 11 26 - 127 4 181 -3.0%
Cost of sales -1 550 3 -8 15 -1 540 1.0%
Gross profit 2 722 14 18 - 112 2 642 -4.1%
SG&A -1 155 - 19 -8 7 -1 175 0.6%
Other operating income/(expenses) 5 - - -4 1 -84.3%
Normalized EBIT 1 571 -4 9 - 109 1 467 -7.0%
Normalized EBITDA 1 778 -4 10 - 124 1 660 -7.0%
Normalized EBITDA margin 41.6% 39.7% -172 bps
Latin America West Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 27 657 -1 - 1 292 28 948 4.7%
Revenue 2 284 - 2 207 2 492 9.1%
Cost of sales - 641 -1 2 - 62 - 702 -9.7%
Gross profit 1 643 -1 3 145 1 790 8.8%
SG&A - 726 2 - - 10 - 734 -1.4%
Other operating income/(expenses) 9 - - 10 20 105.7%
Normalized EBIT 927 1 3 145 1 076 15.6%
Normalized EBITDA 1 077 1 3 159 1 240 14.7%
Normalized EBITDA margin 47.2% 49.7% 245 bps
Latin America North Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 26 131 - 64 - 528 26 595 2.0%
Revenue 2 031 -8 -174 207 2 056 10.2%
Cost of sales - 823 4 65 - 20 - 774 -2.5%
Gross profit 1 207 -4 -109 187 1 281 15.5%
SG&A - 677 1 59 - 79 - 695 -11.7%
Other operating income/(expenses) 66 - -7 13 72 20.4%
Normalized EBIT 596 -3 - 57 121 658 20.5%
Normalized EBITDA 798 -3 -73 130 851 16.3%
Normalized EBITDA margin 39.3% 41.4% 216 bps
ab-inbev.com 17
Annex 1
Latin America South Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 6 730 4 - 318 7 052 4.8%
Revenue 650 1 - 142 164 673 25.5%
Cost of sales - 251 -5 45 - 35 - 245 -14.1%
Gross profit 399 -4 - 97 129 427 32.8%
SG&A - 186 -7 39 - 36 - 190 -19.8%
Other operating income/(expenses) 2 -2 -3 11 8 519.5%
Normalized EBIT 216 - 13 - 61 103 245 49.2%
Normalized EBITDA 267 - 13 - 72 116 299 44.3%
Normalized EBITDA margin 41.1% 44.4% 612 bps
EMEA Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 36 706 -15 053 - - 312 21 340 -1.4%
of which AB InBev own beer 23 817 -3 839 - - 231 19 747 -1.2%
Revenue 2 805 - 800 126 45 2 176 2.3%
Cost of sales -1 279 482 - 44 - 47 - 888 -6.0%
Gross profit 1 525 - 318 82 -2 1 288 -0.2%
SG&A - 921 249 - 44 -4 - 720 -0.6%
Other operating income/(expenses) 15 - 2 18 35 117.6%
Normalized EBIT 619 - 68 40 12 602 2.1%
Normalized EBITDA 826 - 106 49 34 802 4.7%
Normalized EBITDA margin 29.4% 36.9% 85 bps
Asia Pacific Scope Currency Organic 2Q18 Organic
2Q17
Translation Growth Growth
Total volumes (thousand hls) 28 885 52 - 868 29 804 3.0%
Revenue 2 055 11 126 136 2 327 6.6%
Cost of sales - 823 -5 - 53 - 77 - 958 -9.4%
Gross profit 1 232 6 73 58 1 369 4.7%
SG&A - 649 -4 - 41 -48 - 742 -7.4%
Other operating income/(expenses) 39 - 3 1 43 1.9%
Normalized EBIT 622 2 35 11 669 1.8%
Normalized EBITDA 758 2 47 50 857 6.6%
Normalized EBITDA margin 36.9% 36.8% 0 bps
Global Export and Holding Scope Currency Organic 2Q18 Organic
2Q17
Companies Translation Growth Growth
Total volumes (thousand hls) 250 - 153 - 35 132 35.6%
Revenue 87 19 - 3 109 3.8%
Cost of sales - 77 - 13 7 -4 - 88 -6.3%
Gross profit 10 6 7 -1 22 -8.0%
SG&A - 237 -5 - 10 16 - 236 6.6%
Other operating income/(expenses) 15 - 16 21 - 15 5 -321.2%
Normalized EBIT - 213 - 15 18 0 - 209 0.1%
Normalized EBITDA - 150 - 15 21 3 - 141 2.0%
ab-inbev.com 18
Annex 2
AB InBev Worldwide Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 305 550 -27 946 - 911 278 515 0.3%
of which AB InBev own beer 248 212 -3 929 - 1 700 245 983 0.7%
Revenue 27 104 -1 421 193 1 210 27 087 4.7%
Cost of sales -10 674 875 - 90 - 295 -10 184 -3.0%
Gross profit 16 430 -545 103 915 16 903 5.8%
SG&A -8 779 360 - 113 - 259 -8 791 -3.1%
Other operating income/(expenses) 408 - 60 9 - 25 332 -7.0%
Normalized EBIT 8 059 - 246 -1 631 8 444 8.0%
Normalized EBITDA 10 162 - 306 26 675 10 557 6.8%
Normalized EBITDA margin 37.5% 39.0% 78 bps
North America Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 57 156 61 - -2 591 54 627 -4.5%
Revenue 7 786 15 45 - 205 7 641 -2.6%
Cost of sales -2 887 12 - 15 47 -2 843 1.6%
Gross profit 4 899 27 30 - 159 4 797 -3.2%
SG&A -2 174 - 33 - 17 4 -2 220 0.2%
Other operating income/(expenses) 20 - - - 18 1 -92.9%
Normalized EBIT 2 744 -6 13 - 173 2 578 -6.3%
Normalized EBITDA 3 149 -5 15 - 189 2 970 -6.0%
Normalized EBITDA margin 40.4% 38.9% -140 bps
Latin America West Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 53 188 - 21 - 3 443 56 609 6.5%
Revenue 4 259 -2 87 483 4 828 11.3%
Cost of sales -1 225 -5 -26 - 128 -1 384 -10.4%
Gross profit 3 034 -7 62 355 3 444 11.7%
SG&A -1 373 7 -28 - 50 -1 444 -3.6%
Other operating income/(expenses) 34 - - -9 26 -25.3%
Normalized EBIT 1 695 - 34 296 2 026 17.5%
Normalized EBITDA 1 998 - 40 311 2 349 15.6%
Normalized EBITDA margin 46.9% 48.7% 178 bps
Latin America North Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 56 550 -125 - -2 279 54 146 -4.0%
Revenue 4 365 -16 - 221 206 4 335 4.7%
Cost of sales -1 821 7 83 82 -1 649 4.5%
Gross profit 2 545 -9 - 138 288 2 686 11.3%
SG&A -1 410 3 74 - 101 -1 434 -7.2%
Other operating income/(expenses) 157 - -9 8 157 5.3%
Normalized EBIT 1 292 -6 - 73 195 1 409 15.2%
Normalized EBITDA 1 699 -6 - 93 201 1 801 11.9%
Normalized EBITDA margin 38.9% 41.5% 266 bps
ab-inbev.com 19
Annex 2
Latin America South Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 15 819 21 - 825 16 666 5.2%
Revenue 1 523 3 - 274 377 1 629 24.9%
Cost of sales - 566 -6 86 - 96 - 582 -17.0%
Gross profit 956 -2 - 188 280 1 046 29.5%
SG&A - 394 -7 72 - 93 - 422 -23.7%
Other operating income/(expenses) 3 -2 -2 6 4 240.4%
Normalized EBIT 565 - 12 - 118 194 629 34.5%
Normalized EBITDA 666 - 12 - 136 216 735 32.7%
Normalized EBITDA margin 43.7% 45.1% 275 bps
EMEA Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 69 625 -27 795 - 59 41 889 0.1%
of which AB InBev own beer 42 602 -3 835 - 32 38 799 0.1%
Revenue 5 145 -1 459 292 116 4 095 3.2%
Cost of sales -2 405 890 - 109 - 99 -1 723 -6.6%
Gross profit 2 740 - 569 183 18 2 371 0.8%
SG&A -1 700 416 - 109 - 18 -1 411 -1.4%
Other operating income/(expenses) 42 -3 3 6 47 16.1%
Normalized EBIT 1 081 - 156 77 6 1 007 0.6%
Normalized EBITDA 1 489 - 219 103 39 1 413 3.1%
Normalized EBITDA margin 28.9% 34.5% -2 bps
Asia Pacific Scope Currency Organic HY18 Organic
HY17
Translation Growth Growth
Total volumes (thousand hls) 52 568 66 - 1,467 54 101 2.8%
Revenue 3 856 18 263 230 4 367 6.0%
Cost of sales -1 630 -9 -113 - 78 -1 829 -4.8%
Gross profit 2 226 10 151 152 2 538 6.8%
SG&A -1 249 -9 -83 - 23 -1 364 -1.8%
Other operating income/(expenses) 81 - 6 -4 84 -4.7%
Normalized EBIT 1 059 1 74 125 1 258 11.8%
Normalized EBITDA 1 412 1 98 106 1 617 7.5%
Normalized EBITDA margin 36.6% 37.0% 54 bps
Global Export and Holding Scope Currency Organic HY18 Organic
HY17
Companies Translation Growth Growth
Total volumes (thousand hls) 644 -153 - -14 478 -2.9%
Revenue 170 19 - 4 193 2.1%
Cost of sales - 140 - 14 4 - 22 - 173 -16.5%
Gross profit 30 5 4 - 19 21 -53.2%
SG&A - 479 -18 - 22 22 - 497 4.5%
Other operating income/(expenses) 71 - 54 12 - 15 14 -66.8%
Normalized EBIT - 378 - 67 -7 - 11 - 463 -2.6%
Normalized EBITDA - 250 - 66 0 - 11 - 326 -3.4%
ab-inbev.com 20
Date: 26/07/2018 07:32:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.