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Anheuser-Busch InBev reports fourth quarter and full 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” or the “Company”)
Anheuser-Busch InBev reports fourth quarter and full year 2018 results
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 4Q18 and FY18 versus the same period of last
year. For important disclaimers please refer to page 22.
HIGHLIGHTS
• Solid revenue growth of 4.8% coupled with operating leverage drove EBITDA growth of 7.9% with
margin expansion of 118 bps and 8.6 billion USD of underlying profit, all despite currency and
commodity headwinds
• Volume, revenue and market share growth achieved in many of our important markets this year, led by
Mexico, China, Western Europe, Colombia and several African countries including Nigeria
• Premiumization initiatives delivered top and bottom line growth, led by consistent double digit revenue
growth in the High End Company and our global brands outside of their home markets
• In the US, we delivered our best annual share trend performance since 2012
• Approximately 8% of our global beer volume in 2018 was no- and low-alcohol as we continued to
increase our focus on this opportunity, leveraging global health and wellness trends and in line with our
commitment to smart drinking
KEY FIGURES
• Revenue: Revenue grew by 4.8% in FY18 and by 5.3% in 4Q18, with revenue per hl growth of 4.5%
in FY18 and 4.9% in 4Q18 driven by global premiumization and revenue management initiatives. On a
constant geographic basis, revenue per hl grew by 4.7% in FY18 and by 4.6% in 4Q18.
• Volume: Total volumes grew by 0.3% in FY18, with own beer volumes up 0.8% and non-beer volumes
down 3.6%. In 4Q18, total volumes increased by 0.3%, with own beer volumes up 1.2% and non-beer
volumes down 4.9%.
• Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona,
grew by 9.0% in FY18 and by 9.8% in 4Q18. Outside of their respective home markets, the global
brands grew by 13.1% in FY18 and by 12.6% in 4Q18.
• Cost of Sales (CoS): CoS increased by 4.7% in FY18 and by 4.3% on a per hl basis. On a constant
geographic basis, CoS per hl increased by 4.6% in FY18. In 4Q18, CoS increased by 6.5% and by
6.0% on a per hl basis. On a constant geographic basis, CoS per hl increased by 6.0% in 4Q18.
• EBITDA: EBITDA increased by 7.9% in FY18 to 22 080 million USD, as a result of top-line growth and
enhanced by cost discipline and synergy capture. EBITDA margin expanded by 118 bps to 40.4%. In
4Q18, EBITDA increased by 10.0% to 6 166 million USD with margin expansion of 190 bps to 43.3%.
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• Net finance results: Net finance costs (excluding non-recurring net finance results) were 6 747 million
USD in FY18 compared to 5 814 million USD in FY17. The increase was predominantly due to a
mark-to-market loss of 1 774 million USD in FY18 linked to the hedging of our share-based payment
programs, compared to a loss of 291 million USD in FY17, resulting in a swing of 1 483 million USD. In
4Q18, net finance costs were 2 144 million USD compared to 1 559 million USD in 4Q17.
• Income taxes: Normalized effective tax rate (ETR) increased to 27.8% in FY18 from 22.9% in FY17
and increased to 32.9% in 4Q18 from 32.1% in 4Q17. Excluding the impact of losses relating to the
hedging of our share-based payment programs, our normalized ETR was 24.0% in FY18 as compared
to 22.4% in FY17 and 25.1% in 4Q18 as compared to 28.8% in 4Q17.
• Profit: Normalized profit attributable to equity holders of AB InBev was 6 793 million USD in FY18
versus 7 967 million USD in FY17 and was 1 574 million USD in 4Q18 versus 2 054 million USD in
4Q17. Normalized profit was negatively impacted by mark-to-market losses linked to the hedging of our
share-based payment programs. Underlying profit (normalized profit attributable to equity holders of
AB InBev excluding mark-to-market losses linked to the hedging of our share-based payment programs
and the impact of hyperinflation) was 8 644 million USD in FY18 as compared to 8 258 million USD in
FY17 and was 2 497 million USD in 4Q18 as compared to 2 450 million USD in 4Q17.
• Earnings per share (EPS): Normalized EPS in FY18 was 3.44 USD, a decrease from 4.04 USD in
FY17, and 0.80 USD in 4Q18, a decrease from 1.04 USD in 4Q17. Underlying EPS (normalized EPS
excluding mark-to-market losses linked to the hedging of our share-based payment programs and the
impact of hyperinflation) was 4.38 USD in FY18, an increase from 4.19 USD in FY17, and 1.26 USD in
4Q18, an increase from 1.24 USD in 4Q17.
• Dividend: The AB InBev Board proposes a final dividend of 1.00 EUR per share, subject to shareholder
approval at the AGM on 24 April 2019. When combined with the interim dividend of 0.80 EUR per share
paid in November 2018, the total dividend for FY18 would be 1.80 EUR per share. A timeline showing
the ex-coupon dates, the record dates, and the payment dates can be found on page 20.
• Combination with SAB: The business integration resulted in synergies and cost savings of 805 million
USD in FY18, of which 217 million USD were delivered in 4Q18. We have now delivered 2 938 million
USD of the expected 3.2 billion USD synergies and cost savings on a constant currency basis as of
August 2016.
• Deleveraging: Net debt to normalized EBITDA decreased to 4.6x for the 12-month period ending 31
December 2018 from 4.8x for the 12-month period ending 31 December 2017. We expect our net debt
to EBITDA ratio to be below 4x by the end of 2020.
• Hyperinflation: In accordance with IFRS rules, we are required to apply hyperinflation accounting in
Argentina as of 1 January 2018. Additional details can be found on page 17.
• 2018 Full Year Financial Report is available on our website at www.ab-inbev.com.
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Figure 1. Consolidated performance (million USD)
FY17 FY18 Organic
growth
Total Volumes (thousand hls) 612 572 567 066 0.3%
AB InBev own beer 507 692 500 561 0.8%
Non-beer volumes 100 211 61 719 -3.6%
Third party products 4 669 4 786 3.1%
Revenue 56 444 54 619 4.8%
Gross profit 35 058 34 259 4.9%
Gross margin 62.1% 62.7% 3 bps
Normalized EBITDA 22 084 22 080 7.9%
Normalized EBITDA margin 39.1% 40.4% 118 bps
Normalized EBIT 17 814 17 821 9.0%
Normalized EBIT margin 31.6% 32.6% 130 bps
Profit attributable to equity holders of AB InBev 7 996 4 368
Normalized profit attributable to equity holders of AB InBev 7 967 6 793
Underlying profit attributable to equity holders of AB InBev 8 258 8 644
Earnings per share (USD) 4.06 2.21
Normalized earnings per share (USD) 4.04 3.44
Underlying earnings per share (USD) 4.19 4.38
4Q17 4Q18 Organic
growth
Total Volumes (thousand hls) 145 977 142 363 0.3%
AB InBev own beer 126 754 124 949 1.2%
Non-beer volumes 17 994 16 421 -4.9%
Third party products 1 228 993 -19.1%
Revenue 14 600 14 250 5.3%
Gross profit 9 434 9 057 4.6%
Gross margin 64.6% 63.6% -40 bps
Normalized EBITDA 6 189 6 166 10.0%
Normalized EBITDA margin 42.4% 43.3% 190 bps
Normalized EBIT 5 073 5 068 12.4%
Normalized EBIT margin 34.7% 35.6% 233 bps
Profit attributable to equity holders of AB InBev 3 037 457
Normalized profit attributable to equity holders of AB InBev 2 054 1 574
Underlying profit attributable to equity holders of AB InBev 2 450 2 497
Earnings per share (USD) 1.54 0.23
Normalized earnings per share (USD) 1.04 0.80
Underlying earnings per share (USD) 1.24 1.26
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Figure 2. Volumes (thousand hls)
FY17 Scope Organic FY18 Organic growth
growth Total Own beer
Volume volume
North America 113 496 76 -2 846 110 726 -2.5% -2.6%
Latin America West 110 625 - 71 4 922 115 476 4.5% 5.1%
Latin America North 119 374 - 232 -4 172 114 969 -3.5% -2.1%
Latin America South 34 062 238 - 325 33 975 -1.0% 0.1%
EMEA 131 692 -46 445 1 929 87 176 2.3% 2.3%
Asia Pacific 101 986 95 2 185 104 266 2.1% 2.2%
Global Export and Holding Companies 1 336 - 846 - 13 478 -2.6% -2.7%
AB InBev Worldwide 612 572 -47 185 1 679 567 066 0.3% 0.8%
4Q17 Scope Organic 4Q18 Organic growth
growth Total Own beer
Volume volume
North America 26 231 - - 116 26 114 -0.4% -0.4%
Latin America West 29 425 - 46 1 025 30 405 3.5% 3.5%
Latin America North 34 881 - 56 -1 206 33 619 -3.5% -1.8%
Latin America South 10 432 195 - 761 9 866 -7.4% -4.9%
EMEA 26 238 -3 762 1 007 23 484 4.5% 4.3%
Asia Pacific 18 381 22 472 18 875 2.6% 3.8%
Global Export and Holding Companies 388 - 388 - - - -
AB InBev Worldwide 145 977 -4 034 420 142 363 0.3% 1.2%
MANAGEMENT COMMENTS
2018 was another step forward in our company’s transformational journey. We had many successes to
celebrate, though the year was not without its challenges. Our focus this year was to continue to drive the
organic growth of our business while deleveraging towards our optimal capital structure.
Today we are a stronger, more diversified company applying our learnings across our global business.
While there is more work to be done, we are confident in our strategy and plans to grow our business by
creating value from seed to sip and delivering sustainable top and bottom line growth in 2019 and beyond.
Reflecting on our performance
Our business delivered consistent top-line growth with margin expansion and EBITDA acceleration
throughout the year. Revenue growth of 4.8% was driven by own beer volume growth of 0.8% (total volume
up 0.3%) as well as continued premiumization and revenue management initiatives. Revenue per hl growth
on a constant geographic basis was 4.7%, of which we estimate more than 100 bps was driven by positive
mix in line with our premiumization strategy. EBITDA grew 7.9% on a full year basis with margin expansion
of 118 bps to 40.4%, with consistent acceleration each quarter in line with our guidance. However, we faced
challenging macroeconomic environments in many emerging markets, especially Brazil, Argentina and
South Africa, and unfavorable currency volatility has slowed our deleveraging pace.
Highlights from the year include:
• Healthy volume, revenue and market share growth in important markets including Mexico, China,
Western Europe, Colombia and several African countries including Nigeria. Each of these markets
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delivered strong performances in their respective premium portfolios while simultaneously evolving
their core portfolios in line with the category expansion framework.
• In the US, achieving our best market share trend performance since 2012. This was driven by the
evolution of our commercial strategy, led by premiumization and innovation.
• Continued global growth of our High End Company (revenue up 18.3%) and global brand portfolio
(revenue up 9.0% globally and 13.1% outside of the brands’ home markets). The brands within the
High End Company command a premium and contribute higher margins to our overall results.
• ZX Ventures, our growth and innovation group, delivered robust revenue and EBITDA growth in
the year with strong commercial momentum. In craft and specialties, our portfolio of brands grew
well ahead of the total company and broader industry with double digit revenue growth. Our
eCommerce and brand experience platforms also each grew revenue double digits, and our share
online is now greater than our share in traditional channels. Our ZX Ventures platforms allow us to
engage with consumers more than ever before and we are using this consumer proximity to drive
more meaningful interactions and solutions.
• Budweiser was the most “talked about” brand on digital and social media during the 2018 FIFA
World Cup Russia™, with an estimated five billion social media impressions. It was the biggest
commercial campaign in our company’s history, with activations across more than 50 markets and
565 000 points-of-consumption. We were successful in building brand awareness in many of our
new markets and are using this awareness to propel the brand toward future growth. We further
maximized this sponsorship by activating more than 40 of our local brands in more than 40 markets.
• Delivering profitable growth, with EBITDA margin expansion of 118 bps to 40.4%, driven by
premiumization, cost discipline and continued synergy capture. We achieved further synergies from
the combination with SAB, with 805 million USD in 2018 and over 2.9 billion USD captured to date
out of our commitment to deliver 3.2 billion USD by the end of 2019.
• Launched our 2025 Sustainability Goals, our most ambitious set of sustainability commitments yet,
focused on smart agriculture, water stewardship, circular packaging and climate action.
The following aspects of the year held us back:
• Top and bottom line performances were below our expectations in Argentina, Brazil and South
Africa, largely as a result of a weak macroeconomic environment putting pressure on the consumer
in all three markets. Additionally, in South Africa we were adversely affected by out of stocks,
unexpected tax increases and segment mix shift.
• Unfavorable currency volatility in emerging markets impacted our cash flows and slowed our
anticipated deleveraging path. As a result, we proactively rebased our dividend payout by 50% in
October to accelerate deleveraging in line with our capital allocation priorities.
• Headwinds to our cost base, especially with respect to aluminum globally and the freight market in
the US.
We have always said that we are never completely satisfied with our results, and 2018 is no exception. We
will build upon the learnings of this year to ensure we continue opening and closing gaps to create
sustainable, long-term, profitable growth.
Evolving our commercial strategy
We made significant progress in 2018 executing on many intellectual synergies from the combination with
SAB. These intellectual synergies are anchored around three interlocking strategic frameworks: the market
maturity model, the category expansion framework and growth champions.
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Our market maturity model allows us to group markets into clusters based on maturity level, enabling us to
develop our portfolio to meet the needs of a range of markets around the world as they mature and evolve.
Our category expansion framework helps us find opportunities for growth. It allows us to address consumer
preferences across occasions, share best practices and adopt a new way of looking at the category that
recognizes different market maturities and the role of brand portfolios in each of our markets.
Finally, our growth champions approach is used to identify the right time to expand our portfolios and
commercial practices in the most efficient and impactful manner. This process is modeled after one of our
most successful systems, efficiency champions, and allows us to benchmark our strategy to open gaps,
execute on them deliberately and track performance to deliver increasing efficiencies.
We believe these frameworks position us well to find opportunities and address consumer needs. We utilize
them to offer the best beer at price points ranging from affordable to premium, and to continually innovate
with the best pipeline of new products and offerings.
Leading the growth of the global beer category
As the world’s leading brewer, we take responsibility for shaping the future of the beer category, its health
and sustainable growth globally. Our category has grown over the past 10 years, both in terms of volume
(+1.0%) and value (+3.7%). Our estimated share of throat as a company has increased within total beer by
60 bps and within total alcohol by 10 bps over the past five years.
Premiumization: We see a significant opportunity for premiumization around the world and we have the
best portfolio to lead this trend. Compared to wine and spirits, beer is in its early stages of premiumization
globally, providing us with the opportunity to capture beer’s fair share. For instance, Corona currently has
a market share of 3% or higher in just three countries where we own the brand. With the brand growing
double digits globally, we believe it is still far from reaching its full potential and see an opportunity for further
growth. We expect the premium segment to grow about five times faster than core and value in the years
to come. Our High End Company is well positioned to capitalize on this trend and deliver high growth and
profitability.
Differentiate & extend the core: Our portfolio of core brands is focused on sharpening brand positions to
create meaningful emotional and functional differentiation by celebrating the authenticity of our brands
along with beer’s natural ingredients and its simplicity.
Emerging markets and affordability: We also see a clear opportunity for volume growth in emerging
markets, where per capita consumption volumes are considerably lower than those of developed markets.
We believe we are uniquely positioned to lead that growth in a responsible manner, given our diverse
portfolio of brands tailored to a variety of consumer price points and occasions.
Category expansion is enhanced in our low- and middle- maturity markets through affordability initiatives,
as it is crucial to have a portfolio of affordable options to engage our consumers at accessible price points.
Two prime examples in 2018 were the launches of Nossa and Magnífica in Brazil—beers brewed with local
cassava and offered to consumers at a considerably lower price point while providing comparable margins
to our core brands. This affordability initiative was a best practice in some of our African markets and
showcases how we are leveraging intellectual synergies across different markets.
Portfolio enhancing: Lastly, by mapping our portfolio of brands within each market, we are identifying
opportunities to introduce existing brands into new markets. Examples of this practice include Argentina’s
Patagonia in certain regions of the US, Australia’s Pure Blonde by Jupiler in Belgium and the US’ Michelob
Ultra in the UK.
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Leveraging our global brands
Our global brands continued to deliver great results, representing more than one third of our total net
revenue growth. For the full year, our global brands grew revenue by 9.0% globally and 13.1% outside of
their home markets.
Budweiser revenue grew 5.3% globally and 10.0% outside of the US, driven by continued expansion into
new geographies as well as our activation during the 2018 FIFA World Cup Russia™, which was our largest
and most successful campaign ever. Stella Artois continued to see strong, balanced growth, up 5.2%
globally, driven by its increased penetration of the meal occasion. Corona leads the way as the most
premium brand amongst the three, growing double digits for the fourth consecutive year, with revenue up
17.6% globally and 28.5% outside of Mexico.
We believe in offering a customized portfolio of brands to lead the premium segment in order to reach more
consumers in different occasions. Our complementary global brands give consumers premium options
defined by occasion, taste profile and price point.
Innovating to share our passion for beer
As a consumer-centric company, we are relentlessly committed to exploring new products and opportunities
to excite consumers around the world. We have a robust innovation pipeline, including the launch of Corona
Ligera in Australia, Stella Artois Gluten Free in the UK and Michelob Ultra Pure Gold (organic light lager) in
the US.
Our no- and low-alcohol beer (NABLAB) portfolio continues to cultivate new opportunities in many of our
markets by addressing the growing consumer trends of moderation and health and wellness. With these
trends becoming ever more important to consumers around the world, we are committed to leading
innovation in this space. For example, we have successfully launched brands such as Castle Free in South
Africa, Carlton Zero in Australia, Aguila Cero in Colombia and, most recently, Leffe Blonde 0.0% in Belgium.
Leveraging technology to better engage with consumers
Our focus on technology and innovation goes beyond what consumers see every day. ZX Ventures is
continuing to find new ways to respond to consumer trends through eCommerce, craft and brand
experiences, and today represents more than 10% of our total growth.
Beer Garage, our home for innovation, emerging technology and enterprise technology, is utilizing
enterprise-level technology to transform our supply chain and bring us closer to consumers with initiatives
such as using Point of Sale (PoS) technology to gather consumer insights from around the world. Our
Global Innovation and Technology Center (GITeC) is focused on enhancing our brewing processes, as well
as product and package development. One example is Canvas, a sustainable plant-based barley beverage
produced with saved grain from our brewing process.
Organizing ourselves for future growth
In July, we created two new senior leadership positions to capture organic growth opportunities within our
existing business. Our Chief Non-Alcohol Beverages Officer is focusing on accelerating growth in our
existing non-alcohol business, which represents more than 10% of our current volumes. Our Chief
Owned-Retail Officer will manage and grow our existing owned-retail business by coordinating cross-
marketing initiatives and sharing best practices.
To continue our focus on staying ahead of market and consumer trends, we brought Marketing and ZX
Ventures under a common global lead, our Chief Marketing Officer. This change will allow us to adopt ZX
Ventures’ innovative approach more broadly within our company.
Contributing to a sustainable future
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In March 2018, we launched our ambitious 2025 Sustainability Goals, which will help us brew great beers
for the next 100 years and beyond. We have already begun to create change—every Budweiser sold in the
US is now brewed with 100% renewable purchased electricity, with plans to roll out to other markets around
the world. 2018 also marked the launch of our 100+ Accelerator, which mobilizes the world’s brightest
minds to solve some of the most pressing global sustainability challenges.
Fostering a culture of Smart Drinking
We are committed to responsible drinking and road safety. Our programs include our six city pilots to create
innovative evidence-based programs to reduce the harmful use of alcohol and a global internal competition
to help promote Smart Drinking messaging through commercial communications using social norms
marketing. Additionally, as part of our commitment to reach 20% of our volumes from NABLAB by 2025,
we continue to expand our portfolio with high quality options. In 2018, we expanded our NABLAB portfolio
to 76 offerings by successfully adding 12 new products, reaching approximately 8% of our global beer
volume within this segment. We also continued our ongoing efforts to address road safety with our Together
for Safer Roads coalition and a new partnership with the United Nations Institute for Training and Research
(UNITAR) to help improve road safety worldwide.
Deleveraging to our optimal capital structure
About two years ago, we completed a transformational combination with SAB. We believe the total company
is greater and stronger than the sum of its parts, and we remain disciplined and focused on deleveraging
to our optimal capital structure of around 2x net debt to EBITDA. We expect our net debt to EBITDA ratio
to be below 4x by the end of 2020.
Our debt portfolio and liquidity position provide our business with operating and financial flexibility. We have
addressed large near-term maturities to eliminate refinancing needs and will continue to proactively manage
our debt portfolio. Our debt portfolio is comprised of a diverse currency mix that provides access to liquid
debt markets, and 94% of the portfolio holds a fixed-interest rate. Additionally, our 16 billion USD of liquidity
far exceeds our debt maturities in any given year.
Considering this year’s currency volatility and consistent with our capital allocation priorities, in October we
proactively rebased our dividend payout by 50% to accelerate deleveraging. In doing so, we continue to
prioritize investments in organic growth opportunities and create greater financial flexibility.
Achieving results together
Thank you to our shareholders for your continued support, as we remain focused on delivering solid organic
growth while deleveraging toward our optimal capital structure. We are a company of owners who take
results personally, and we are never completely satisfied with our results, including in 2018.
As we begin 2019, we firmly believe that with our commercial strategy, robust portfolio of brands, diverse
geographic footprint, unparalleled efficiency and, most importantly, our strong pipeline of committed and
talented people, we can deliver on these objectives now and in the future.
2019 OUTLOOK
(i) Overall Performance: In FY19, we expect to deliver strong revenue and EBITDA growth, driven
by the solid performance of our brand portfolio and strong commercial plans. Our growth model is
even more focused on category expansion, targeting a more balanced top-line growth between
volume and revenue per hl. We expect to deliver revenue per hl growth ahead of inflation based
on premiumization and revenue management initiatives, while keeping costs (sum of CoS plus
SG&A) below inflation.
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(ii) Cost of Sales: We expect CoS per hl to increase by mid-single digits, with currency and
commodity headwinds to be offset by cost management initiatives.
(iii) 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 2 391 million USD was captured between 1 April 2016 and 31 December
2018. The balance of roughly 250 million USD is expected to be captured by the end of 2019.
(iv) Net Finance Costs: We expect the average gross debt coupon in FY19 to be between 3.75-
4.00%. Net pension interest expenses and accretion expenses including IFRS 16 adjustments
(lease reporting) are expected to be approximately 160 million USD per quarter. Net finance costs
will continue to be impacted by any gains and losses related to the hedging of our share-based
payment programs.
(v) Effective Tax Rate: We expect the normalized ETR in FY19 to be in the range of 25% to 27%,
excluding any gains and losses relating to the hedging of our share-based payment programs.
(vi) Net Capital Expenditure: We expect net capital expenditure of between 4.0 and 4.5 billion USD
in FY19.
(vii) Debt: Approximately 44% 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. We expect our net debt to EBITDA ratio to be below 4x by the end of 2020.
(viii) Dividends: We expect dividends to be a growing flow over time, although growth in the short term
is expected to be modest given our deleveraging commitments.
BUSINESS REVIEW
United States
In the US, our revenues declined by 0.7% in FY18 and grew by 1.3% in 4Q18. Revenue per hl grew by
1.9% in FY18 and by 1.4% in 4Q18, driven by revenue management initiatives and continued
premiumization of our portfolio. We estimate that industry sales-to-retailers (STRs) declined by 1.8% in
FY18 and by 2.4% in 4Q18. In FY18, our own STRs were down 2.7% and our sales-to-wholesalers (STWs)
were down 2.6%, as STWs converged with STRs as expected. In 4Q18, STRs were down 2.8% and STWs
were down 0.1%.
Our top-line performance was supported by the continued success of our commercial initiatives, which led
to our best annual share trend performance since 2012 with an estimated decline in total market share of
40 bps in FY18, and an estimated decline of 20 bps in 4Q18, our strongest quarterly trend performance in
24 quarters.
Our above core portfolio continues to outperform the industry and accelerated share gains to 90 bps in
FY18 versus 50 bps in FY17, driven by Michelob Ultra, our regional craft portfolio, the recently rebranded
Bon & Viv Spiked Seltzer and our innovations in the segment. Michelob Ultra accelerated its growth this
quarter, solidifying its position as the top share gainer in the US for the past 4 years. Our 2018 innovation
pipeline contributed 50% of total industry innovation volume, up from 10% in the previous year, and included
Michelob Ultra Pure Gold, Bud Light Orange and the Budweiser Reserve series. These innovations had a
strong year and continue to gain share, enhancing the premiumization of our portfolio.
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Within their segments, Budweiser and Bud Light are performing better than prior year trends. However, the
core and core light segments remain under pressure as consumers trade up to higher price tiers,
contributing to Budweiser and Bud Light losing 35 bps and 80 bps of estimated total market share,
respectively, in FY18, and 30 bps and 70 bps, respectively, in 4Q18.
Our Super Bowl advertising was in line with our strategy to strengthen the beer category. We drove stronger
consumer awareness of our premium brands and innovations including Stella Artois, Bon & Viv Spiked
Seltzer, Michelob Ultra and Michelob Ultra Pure Gold. Budweiser led the conversation on sustainability and
renewable energy, and Bud Light highlighted the brand’s commitment to quality and transparency for
consumers, following our announcement in January that it would be the first brand in the US to add a
comprehensive on-pack serving facts and ingredient label.
Our EBITDA declined by 2.3% in FY18 with margin contraction of 65 bps to 40.3%, as an improved top-line
performance was more than offset by commodity headwinds and higher distribution expenses related to a
tighter US freight market. In 4Q18, our EBITDA grew by 6.2% with margin expansion of 191 bps to 41.4%,
as a result of top-line growth and lower SG&A costs related to the timing of variable compensation accruals
and lower freight cost pressure as we cycle the previous year’s increase.
Mexico
Mexico was our best performing market this year in both top and bottom line delivery. We grew volume in
every major brand and every region, resulting in a market share gain of 60 bps. In FY18, revenue grew by
low double digits, revenue per hl grew by mid-single digits in line with inflation, and volumes grew by high
single digits. In 4Q18, revenue grew by low double digits with revenue per hl growth and volume growth of
mid-single digits.
Throughout the year we have focused on developing our portfolio in line with the category expansion
framework to clearly differentiate our brands. This strategy has enabled all of our brands to reach record
levels across the country. Our core brands are leading the way for growth with different regional
approaches, enabling Corona to grow at an accelerated pace in the Northern region and Victoria to deliver
its best performance ever in the Central region. Our premium portfolio contributed meaningfully to top-line
growth as well, led by Michelob Ultra and Stella Artois which grew by double digits.
The strong top-line performance, supported by capacity enhancements and continued cost discipline,
contributed to FY18 EBITDA growth of 19.2% with margin expansion of 304 bps. In 4Q18, EBITDA grew
by 24.2% with margin expansion of 566 bps.
Colombia
In Colombia, our revenues grew by 8.4% in FY18, with revenue per hl growth of 5.0% and total volume
growth of 3.2%. The beer category continues to expand, as we gained an estimated 150 bps of share of
total alcohol in the year, leading to beer volume growth of 3.6% in FY18 and 3.2% in 4Q18. Non-beer
volumes grew 0.2% in FY18 and 0.3% in 4Q18.
We continue to drive premiumization within the category, supported by our global brand portfolio which
grew by more than 75% this year, led by a strong performance from Budweiser. Our local brand portfolio
also performed well, led by Aguila’s country-wide expansion focused on promoting its national identity.
EBITDA grew 17.3% in FY18 with margin expansion of 418 bps, driven by revenue growth and continued
synergy capture. In 4Q18, EBITDA grew 13.3% with margin expansion of 201 bps.
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Brazil
Our business in Brazil reported revenue growth in FY18 of 1.7% with revenue per hl growth of 6.4%.
Volumes declined by 4.4%, with beer volumes down 3.1% and non-beer volumes down 8.7%. We estimate
we lost 40 bps of market share in FY18 after gaining approximately 60 bps of market share in FY17. In
4Q18, revenue declined by 0.7% with revenue per hl growth of 3.3% and volume declines of 4.0%. Beer
volumes declined 2.1%, which we estimate was ahead of the industry, while non-beer volumes declined by
9.8%.
We gained share in the premium segment, driven by our global brand portfolio which grew by more than
30%. Budweiser grew by more than 25%, Stella Artois was up by more than 40% and Corona led the way
as one of the fastest growing brands in the country, up by more than 75% this year. Our core plus portfolio
also delivered strong double digit growth, with Bohemia, Brahma Extra and Skol Hops performing very well.
We under-index considerably in the value segment with approximately 20% market share, and this segment
now represents around 23% of the industry. Therefore, in order to capture share of the value segment
without compromising our profitability, we are leveraging best practices from other markets to drive
affordability initiatives in certain regions. We successfully launched two brands this year brewed with
cassava grown by local farmers, which offer consumers an accessible price point while delivering
comparable margins to our core portfolio. Nossa was launched in the third quarter in Pernambuco and we
estimate it gained 5 percentage points of market share in the state by the end of the year. Applying the
learnings from this early success, we launched Magnífica in the state of Maranhão in December, and we
continue to explore additional opportunities to scale this initiative throughout relevant states for the
segment.
In FY18, EBITDA grew 4.0% with margin expansion of 100 bps to 43.9% as a result of revenue
management initiatives and ongoing cost discipline. In 4Q18, EBITDA declined by 7.6% with margin
compression of 356 bps to 48.1% driven by the phasing of costs of sales in our non-beer business, partially
offset by phasing of SG&A.
Our performance in Brazil this year was below our expectations in the context of a challenging consumer
environment. We are committed to improving our results in the market and believe we have the right
strategy in place to deliver more balanced top-line growth between volume and revenue per hl. Our strategy
is supported by the right brand portfolio, distribution capabilities, commercial investments and people to
deliver sustainable, profitable growth in 2019 and beyond.
South Africa
The macroeconomic and consumer environment in South Africa was challenging this year. The VAT
increase as of 1 April 2018, numerous petrol price increases and rising unemployment levels continued to
have a negative impact on consumer disposable income, which put disproportionate pressure on the core
segment where our portfolio is over-indexed. Our revenue in FY18 was flattish, with mid-single digit revenue
per hl growth offset by mid-single digit volume declines. In 4Q18, we saw revenue growth of low single
digits with flattish volumes.
Our premium portfolio continues to grow by triple digits, and we gained 10 percentage points of market
share in the growing high end segment this year. In the core segment, which still accounts for the vast
majority of our volumes and was held back by a challenging macroeconomic environment, our share
remains broadly unchanged, and toward the end of the year we saw an improved performance in volume.
EBITDA this year decreased by low single digits with margin contraction of just over 100 bps, primarily due
to escalations in the cost of sales. In 4Q18, EBITDA decreased by low single digits with margin contraction
of more than 300 bps.
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China
Revenue grew by 8.3% in FY18 with premiumization driving revenue per hl growth of 5.6% and supported
by volume growth of 2.5%. In 4Q18, revenue growth of 17.1% was driven by strong revenue per hl growth
of 10.2% and volume growth of 6.3%, which benefitted from the earlier timing of the Chinese New Year.
Our strong top-line performance resulted in further market share gains of 75 bps as per our estimates. Our
super premium brands continued to grow significantly, supported by a strong overall performance of our
eCommerce business. In FY18, Budweiser grew by mid-single digits supported by premiumization efforts
which expanded beyond the music platform into fashion and broader lifestyle activations.
EBITDA grew by 20.9% in FY18 with margin expansion of 338 bps, resulting from top-line growth coupled
with continued premiumization and cost discipline. In 4Q18, EBITDA continued healthy year-over-year
growth.
Highlights from our other markets
In Canada, top-line declined by low single digits in both FY18 and 4Q18, driven primarily by a weaker beer
industry and our share performance within the value segment, partially offset by the continued success of
our trade-up strategy. Our High End Company in Canada is growing ahead of the industry, as Corona and
Stella Artois continue to gain share and our local craft brands grew by double digits. Our focus core and
core plus brands also continue to deliver solid results, with Michelob Ultra finishing the year as the fastest
growing brand in Canada, and with Bud Light growing share for the 23rd consecutive year.
In Peru, we grew revenue by 7.0% in FY18 amidst a challenging macroeconomic environment that led to
a volume decline of 1.7%. Top-line growth was driven by revenue management initiatives and positive
brand mix from the growth of our global brands. In Ecuador, we grew revenue by 8.7% with volume growth
of 4.9% and we gained an estimated 75 bps of share of total alcohol in FY18. This was a result of successful
initiatives across our portfolio, led by Pilsener and Club Premium and continued growth of our global brands.
In Latin America South, Argentina volumes declined by low single digits in FY18, due largely to the
consumption contraction resulting from challenging macroeconomic conditions. Despite the tough operating
environment, we saw some encouraging trends in the industry and our portfolio. The beer category
continues to gain share of throat from other alcoholic beverages, gaining over 3 pp this year. Our premium
brands are doing well, gaining share in a growing segment of the industry, driven by Patagonia and Corona,
and we continue to scale up Budweiser after reacquiring the rights to the brand in 2Q18. We also
successfully repositioned our two largest brands in the country, Quilmes Clásica and Brahma, leading to
an improved performance of our core portfolio. In accordance with IFRS rules, we are required to apply
hyperinflation accounting in Argentina as of 1 January 2018. Additional details can be found on page 17.
Within EMEA, Europe grew revenue by low single digits in both FY18 and 4Q18, driven by both
premiumization and volume growth. The UK and Spain led the way with double digit revenue growth
underpinned by higher volumes, and we grew market share across the region. In Africa excluding South
Africa, we saw significant own beer volume growth in FY18 in Zambia (up more than 20%) and Mozambique
(up high teens), where we achieved record high market share in the last quarter of the year. However, own
beer volumes were flattish in Tanzania and down by mid-single digits in Uganda as a result of capacity
constraints and a challenging macroeconomic environment. Our growth in Nigeria accelerated throughout
this past year following the introduction of our new brewery mid-year to meet demand, with revenue growth
of more than 50% in 4Q18 (more than 25% in FY18) driven by double digit volume growth and continued
market share gains. EBITDA margins expanded by more than 2 000 bps in 4Q18 as a result of the
alleviation of capacity constraints and Budweiser’s entry into the premium segment.
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In APAC, Australia grew revenue by low single digits, despite lower volumes due to increased promotional
activity by competitors and a softer industry performance amidst declining consumer confidence. Great
Northern remains a key engine of growth, with continued double digit growth of both Original and Super
Crisp variants. Our craft acquisitions continue to grow in strength with double digit volume growth. In 4Q18,
we further strengthened our NABLAB portfolio with the launch of our first non-alcohol beer, Carlton Zero.
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CONSOLIDATED INCOME STATEMENT
Figure 3. Consolidated income statement (million USD)
FY17 FY18 Organic
growth
Revenue 56 444 54 619 4.8%
Cost of sales -21 386 -20 359 -4.7%
Gross profit 35 058 34 259 4.9%
SG&A -18 099 -17 118 -0.4%
Other operating income/(expenses) 854 680 -2.2%
Normalized profit from operations (normalized EBIT) 17 814 17 821 9.0%
Non-recurring items above EBIT - 662 - 715
Net finance income/(cost) -5 814 -6 747
Non-recurring net finance income/(cost) - 693 -1 982
Share of results of associates 430 153
Income tax expense -1 920 -2 839
Profit from continuing operations 9 155 5 691
Discontinued operations results 28 -
Profit 9 183 5 691
Profit attributable to equity holders of AB InBev 7 996 4 368
Profit attributable to non-controlling interest 1 187 1 323
Normalized EBITDA 22 084 22 080 7.9%
Normalized profit attributable to equity holders of AB InBev 7 967 6 793
4Q17 4Q18 Organic
growth
Revenue 14 600 14 250 5.3%
Cost of sales -5 166 -5 193 -6.5%
Gross profit 9 434 9 057 4.6%
SG&A -4 668 -4 154 6.0%
Other operating income/(expenses) 307 166 -32.5%
Normalized profit from operations (normalized EBIT) 5 073 5 068 12.4%
Non-recurring items above EBIT - 201 - 464
Net finance income/(cost) -1 559 -2 144
Non-recurring net finance income/(cost) - 658 - 893
Share of results of associates 217 27
Income tax expense 568 - 754
Profit from continuing operations 3 441 841
Discontinued operations results - -
Profit 3 441 841
Profit attributable to equity holders of AB InBev 3 037 457
Profit attributable to non-controlling interest 404 384
Normalized EBITDA 6 189 6 166 10.0%
Normalized profit attributable to equity holders of AB InBev 2 054 1 574
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Selling, General & Administrative Costs (SG&A)
SG&A increased by 0.4% in FY18, growing well below inflation as a result of synergy capture and ongoing
cost discipline. In 4Q18, SG&A declined 6.0% as a result of the phasing of sales and marketing investments
associated with the 2018 FIFA World Cup RussiaTM which were weighted toward the first half of 2018.
Other operating income
Other operating income decreased by 2.2% in FY18 due to a year-over-year reduction in government
grants and lower gains from disposals. In 4Q18, other operating income decreased by 32.5% due to the
phasing of government grants, primarily in Brazil.
Share of results of associates
The share of results of associates decreased from 430 million USD in FY17 to 153 million USD in FY18,
and from 217 million USD in 4Q17 to 27 million USD in 4Q18. The 2017 share of results of associates
reported for Castel includes the revision of 2016 finalized result of associates. In 2018, the share of results
of associates reported for Castel was negatively impacted by a currency devaluation in Angola.
Non-recurring items above EBIT
Figure 4. Non-recurring items above EBIT (million USD)
4Q17 4Q18 FY17 FY18
Restructuring - 61 - 195 - 468 - 385
Acquisition costs / Business combinations - 112 - 22 - 155 - 74
Business and asset disposal (including impairment losses) - 28 - 17 - 39 - 26
Provision for EU investigation - - 230 - - 230
Impact on profit from operations - 201 - 464 - 662 - 715
Normalized profit from operations excludes negative non-recurring items of 715 million USD in FY18 and
464 million USD in 4Q18, primarily related to the one-off costs linked to the SAB integration.
In 2016, the European Commission announced an investigation into alleged abuse of a dominant position
by us in Belgium through certain practices aimed at restricting trade from other European Union member
states to Belgium. In connection with these ongoing proceedings, we made a provision of 230 million USD.
Net finance income/(cost)
Figure 5. Net finance income/(cost) (million USD)
4Q17 4Q18 FY17 FY18
Net interest expense - 949 - 912 -4 005 -3 785
Net interest on net defined benefit liabilities - 19 - 23 - 101 - 94
Accretion expense - 162 - 143 - 614 - 400
Mark-to-market - 396 - 900 - 291 -1 774
Other financial results - 33 - 166 - 803 - 693
Net finance income/(cost) -1 559 -2 144 -5 814 -6 747
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Net finance cost was impacted by the negative impact of mark-to-market losses on the hedging of our
share-based payment programs. 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
4Q17 4Q18 FY17 FY18
Share price at the start of the period (Euro) 101.30 75.22 100.55 93.13
Share price at the end of the period (Euro) 93.13 57.70 93.13 57.70
Number of equity derivative instruments at the end of the period (millions) 46.9 46.9 46.9 46.9
Non-recurring net finance income/(cost)
Figure 7. Non-recurring net finance income/(cost) (million USD)
4Q17 4Q18 FY17 FY18
Mark-to-market (Grupo Modelo deferred share instrument) - 188 - 445 - 146 - 873
Other mark-to-market - 182 - 432 - 142 - 849
Early termination fee of Bonds and Other - 288 - 16 - 405 - 260
Non-recurring net finance income/(cost) - 658 - 893 - 693 -1 982
Non-recurring net finance costs include mark-to-market losses on derivative instruments entered into to
hedge the shares issued in relation to the Grupo Modelo and SAB combinations.
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
4Q17 4Q18 FY17 FY18
Share price at the start of the period (Euro) 101.30 75.22 100.55 93.13
Share price at the end of the period (Euro) 93.13 57.70 93.13 57.70
Number of equity derivative instruments at the end of the period (millions) 45.5 45.5 45.5 45.5
Income tax expense
Figure 9. Income tax expense (million USD)
4Q17 4Q18 FY17 FY18
Income tax expense - 568 754 1 920 2 839
Effective tax rate -21.4% 48.1% 18.0% 33.9%
Normalized effective tax rate 32.1% 32.9% 22.9% 27.8%
Normalized effective tax rate before MTM 28.8% 25.1% 22.4% 24.0%
The increase in our normalized ETR is mainly due to non-deductible mark-to-market losses and changes
in tax legislation in some of the countries in which we operate. Excluding mark-to-market losses linked to
the hedging of our share-based payment programs, our normalized ETR was 24.0% in FY18 compared to
22.4% in FY17.
The 4Q17 income tax expense was positively impacted by a 1.8 billion USD adjustment following the US
tax reform enacted on 22 December 2017. This 1.8 billion USD adjustment results mainly from the
remeasurement of the deferred tax liabilities set up in 2008 in line with IFRS as part of the purchase price
accounting of the combination with Anheuser-Busch following the change in federal tax rate from 35% to
21%.
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Profit, Normalized Profit and Underlying Profit
Figure 10. Normalized and Underlying Profit attributable to equity holders of AB InBev (million USD)
4Q17 4Q18 FY17 FY18
Profit attributable to equity holders of AB InBev 3 037 457 7 996 4 368
Non-recurring items, before taxes 201 464 662 715
Non-recurring finance (income)/cost, before taxes 658 893 693 1 982
Non-recurring taxes -1 697 - 208 - 830 - 240
Non-recurring non-controlling interest - 145 - 32 - 526 - 32
Profit from discontinued operations - - - 28 -
Normalized profit attributable to equity holders of AB InBev 2 054 1 574 7 967 6 793
Underlying profit attributable to equity holders of AB InBev 2 450 2 497 8 258 8 644
Normalized profit attributable to equity holders of AB InBev was lower mainly due to the negative impact of
mark-to-market losses on the hedging of our share-based payment programs. Underlying profit attributable
to equity holders of AB InBev increased from 8 258 million USD in FY17 to 8 644 million USD in FY18.
Basic, Normalized and Underlying EPS
Figure 11. Normalized earnings per share (USD)
4Q17 4Q18 FY17 FY18
Basic earnings per share 1.54 0.23 4.06 2.21
Non-recurring items, before taxes 0.10 0.24 0.34 0.36
Non-recurring finance (income)/cost, before taxes 0.33 0.45 0.35 1.00
Non-recurring taxes -0.86 -0.11 -0.42 -0.12
Non-recurring non-controlling interest -0.07 -0.02 -0.27 -0.02
Profit from discontinued operations - - -0.01 -
Normalized earnings per share 1.04 0.80 4.04 3.44
Figure 12. Key components - Normalized and Underlying Earnings per share in USD
4Q17 4Q18 FY17 FY18
Normalized EBIT before hyperinflation 2.57 2.56 9.04 9.14
Hyperinflation impacts in normalized EBIT - 0.01 - -0.12
Normalized EBIT 2.57 2.57 9.04 9.02
Mark-to-market (share-based payment programs) -0.20 -0.46 -0.15 -0.90
Net finance cost -0.59 -0.63 -2.80 -2.52
Income tax expense -0.57 -0.49 -1.40 -1.56
Associates & non-controlling interest -0.17 -0.20 -0.65 -0.61
Normalized EPS 1.04 0.80 4.04 3.44
Mark-to-market (share-based payment programs) 0.20 0.46 0.15 0.90
Hyperinflation impacts in EPS - 0.01 - 0.04
Underlying EPS 1.24 1.26 4.19 4.38
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Adoption of Hyperinflation accounting in Argentina
Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater
than 100%, we are reporting, starting from the 3Q18 results release in which we accounted for the first nine
months of 2018, the operations of our Argentinian affiliates applying hyperinflation accounting.
We are presenting the impact of adopting hyperinflation accounting as part of scopes.
In 4Q18 we are reporting 196 million USD impact of hyperinflation accounting on our revenue and 81 million
USD impact on our normalized EBITDA. In FY18 we are reporting -246 million USD impact of hyperinflation
accounting on our revenue and -144 million USD impact on our normalized EBITDA.
Figure 13. Impact of hyperinflation
Revenue 4Q18 FY18
Indexation 152 258
Closing rate 44 - 504
Total 196 -246
EBITDA 4Q18 FY18
Indexation 71 108
Closing rate 10 - 252
Total 81 -144
Furthermore, IAS 29 requires us to restate the non-monetary assets and liabilities stated at historical cost
on the balance sheet of our operations in hyperinflation economies using inflation indices and to report the
resulting hyperinflation through the income statement on a dedicated account for hyperinflation monetary
adjustments in the finance line and report deferred taxes on such adjustments, when applicable.
During FY18, the transition to hyperinflation accounting in accordance with the IFRS rules, resulted in 46
million USD monetary adjustment reported in the finance line, a negative impact on the profit attributable
to equity holders of AB InBev of -77 million USD and a negative impact on normalized EPS of -0.04 USD.
Reference base 2018
We have updated our 2018 segment reporting for purposes of results announcements starting 1 January
2019, which can be found on pages 28 and 29. This 2018 reference base covers: (i) the new regional
results presentation effective 1 January 2019, (ii) the impact of hyperinflation accounting for the Argentinian
operations as if we had applied hyperinflation accounting as of 1 January 2018, and (iii) restated results
considering IFRS 16 adjustments (lease reporting) as if we had applied the new standard as of 1 January
2018. For further details please reference our 2018 annual report.
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Reconciliation between profit attributable to equity holders and normalized EBITDA
Figure 14. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD)
4Q17 4Q18 FY17 FY18
Profit attributable to equity holders of AB InBev 3 037 457 7 996 4 368
Non-controlling interests 404 384 1 187 1 323
Profit 3 441 841 9 183 5 691
Discontinued operations results - - - 28 -
Profit from continuing operations 3 441 841 9 155 5 691
Income tax expense - 568 754 1 920 2 839
Share of result of associates - 217 - 27 - 430 - 153
Net finance (income)/cost 1 559 2 144 5 814 6 747
Non-recurring net finance (income)/cost 658 893 693 1 982
Non-recurring items above EBIT (incl. non-recurring impairment) 201 464 662 715
Normalized EBIT 5 073 5 068 17 814 17 821
Depreciation, amortization and impairment 1 116 1 097 4 270 4 260
Normalized EBITDA 6 189 6 166 22 084 22 080
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.
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FINANCIAL POSITION
Figure 15. Cash Flow Statement (million USD)
FY17 FY18
Operating activities
Profit 9 183 5 691
Interest, taxes and non-cash items included in profit 12 484 15 870
Cash flow from operating activities before changes in working capital
and use of provisions 21 667 21 561
Change in working capital 219 512
Pension contributions and use of provisions - 616 - 488
Interest and taxes (paid)/received -5 982 -7 064
Dividends received 142 141
Cash flow from operating activities 15 430 14 663
Investing activities
Net capex -4 124 -4 649
Acquisition and sale of subsidiaries, net of cash acquired/disposed of - 556 145
Net of tax proceeds from SAB transaction-related divestitures 8 248 - 430
Proceeds from the sale/(acquisition) of investment in short-term debt securities 4 337 1 296
Other - 51 - 327
Cash flow from investing activities 7 854 -3 965
Financing activities
Dividends paid -9 275 -7 761
Net (payments on)/proceeds from borrowings -9 981 -4 707
Other (including net finance cost other than interest and purchase of non-controlling interest) -1 748 -1 477
Cash flow from financing activities -21 004 -13 945
Net increase/(decrease) in cash and cash equivalents 2 280 -3 247
Our cash flow from operating activities reached 14.7 billion USD in 2018 compared to 15.4 billion USD in
2017, primarily explained by higher taxes paid in 2018 compared to 2017, including the payment of taxes
related to prior periods.
Cash flow used in investing activities was 3.9 billion USD in 2018 as compared to a cash inflow of 7.9 billion
USD in 2017. The cash flow from investing activities in 2017 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 2018.
Our net capital expenditures amounted to 4.6 billion USD in 2018 and 4.1 billion USD in 2017. Out of the
total 2018 capital expenditures approximately 48% was used to improve the company’s production facilities
while 42% was used for logistics and commercial investments and 10% was used for improving
administrative capabilities and purchase of hardware and software.
The cash outflow from financing activities amounted to 13.9 billion USD in 2018, as compared to a cash
outflow of 21.0 billion USD in 2017. During 2017, we repaid 8 billion USD outstanding under the Term Loan
B. This Term Loan was the last remaining facility of the 75 billion USD senior facilities raised in October
2015 to finance the combination with SAB.
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Our net debt decreased to 102.5 billion USD as of 31 December 2018, from 104.4 billion USD as of 31
December 2017.
Deleveraging to around 2x remains our commitment and we will prioritize debt repayment in order to meet
this objective. We expect our net debt to EBITDA ratio to be below 4x by the end of 2020.
Net debt to normalized EBITDA decreased to 4.6x for the 12-month period ending 31 December 2018 from
4.8x for the 12-month period ending 31 December 2017.
We will continue to proactively manage our debt portfolio, of which 94% currently holds a fixed-interest rate,
44% is currently 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, we maintained over
16 billion USD in cash and revolving credit facility liquidity, which consisted of 9.0 billion USD available
under committed long-term credit facilities and approximately 7.0 billion USD of cash, cash equivalents and
short-term investments.
Figure 16. Terms and debt repayment schedule as of 31 December 2018 (billion USD)
(Please refer to the company's website to view this graph)
74.9
70.7
18.5 17.2
7.4 10.3 9.5 8.2
4.2 5.3
1 year or less 1-2 years 2-3 years 3-5 years More than 5 years
31 December 2017 31 December 2018
PROPOSED FINAL DIVIDEND
Dividend Timeline
Ex-coupon date Record date Payment date
Euronext: ABI 07 May 2019 08 May 2019 09 May 2019
MEXBOL: ANB 07 May 2019 08 May 2019 09 May 2019
JSE: ANH 07 May 2019* 10 May 2019 13 May 2019
NYSE: BUD (ADR program) 07 May 2019 08 May 2019 06 June 2019
Restricted Shares 07 May 2019 08 May 2019 09 May 2019
The AB InBev Board proposes a final dividend of 1.00 EUR per share, subject to shareholder approval at
the AGM on 24 April 2019. When combined with the interim dividend of 0.80 EUR per share paid in
November 2018, the total dividend for the Fiscal Year 2018 would be 1.80 EUR per share.
* The proposed timetable concerning the shares traded on the Johannesburg Stock Exchange is based on
Wednesday, 8 May 2019 being a South African public holiday due to the South African elections taking
place on that day and is subject to change. Shareholders holding shares traded on the Johannesburg Stock
Exchange will be notified accordingly.
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RECENT EVENTS
Bond issuance and tender offer
On 23 January 2019, we issued 15.5 billion USD aggregate principal amount of bonds (collectively, the
“Notes”) via Anheuser-Busch InBev Worldwide Inc. The proceeds of the Notes were used to fund the
concurrently announced tender offer for up to $16.5 billion of certain USD bonds maturing between 2021-
2026. The tender offer expired on 7 February 2019 and we successfully retired 16.3 billion USD principal
amount of bonds maturing 2021-2026.
The Notes offering and subsequent tender offer allowed us to significantly extend our debt maturity profile
and eliminate any near-term refinancing pressure.
Notes Offering
Aggregate Principal
Title of Series of Notes Maturity Date Coupon
Amount Sold
Fixed Rate Notes due 2025 $2,500,000,000 January 23, 2025 4.15%
Fixed Rate Notes due 2029 $4,250,000,000 January 23, 2029 4.75%
Fixed Rate Notes due 2031 $750,000,000 January 23, 2031 4.90%
Fixed Rate Notes due 2039 $2,000,000,000 January 23, 2039 5.45%
Fixed Rate Notes due 2049 $4,000,000,000 January 23, 2049 5.55%
Fixed Rate Notes due 2059 $2,000,000,000 January 23, 2059 5.80%
Tender Offer
Principal Amount
Principal
Targeted Notes Issuer Outstanding After
Redeemed
Purchase
2021 Pool
2.650% Notes due 2021 ABIFI $2,518,521,000 $2,449,067,000
Floating Rate Notes due 2021 ABIFI 189,204,000 310,796,000
4.375% Notes due 2021 ABIWW 214,638,000 285,362,000
2022 Pool
3.750% Notes due 2022 ABIWW $1,100,588,000 $1,249,451,000
2.500% Notes due 2022 ABIWW 1,295,953,000 1,704,047,000
2023 Pool
2.625% Notes due 2023 ABIFI $606,684,000 $643,316,000
3.300% Notes due 2023 ABIFI 2,885,926,000 3,114,074,000
2024 Pool
Floating Rate Notes due 2024 ABIWW $270,907,000 $229,093,000
3.500% Notes due 2024 ABIWW 845,580,000 654,420,000
3.700% Notes due 2024 ABIFI 534,827,000 865,173,000
2026 Pool
3.650% Notes due 2026 ABIFI $811,685,000 $1,633,152,000
3.650% Notes due 2026 ABIWW and ABC 5,064,022,000 3,491,141,000
Total $16,338,535,000 $16,629,092,000
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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. The impact of adopting hyperinflation accounting in Argentina effective
1 January 2018 is presented as a scope change.
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. References to the High End Company refer to a business unit made up of a portfolio of global, specialty and craft
brands across 22 countries.
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 was 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.
4Q18 and FY18 EPS is based upon a weighted average of 1,975 million shares compared to a weighted average of 1,971 million
shares for 4Q17 and FY17.
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 ABI SAB Group Holdings Limited 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 ABI SAB Group Holdings
Limited, 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 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.
The Fourth Quarter 2018 (4Q18) and Full Year 2018 (FY18) financial data set out in Figure 1 (except for the volume information),
Figures 3 to 5, 7, 9, 10 and 14 of this press release have been extracted from the group’s audited consolidated financial statements
as of and for the twelve months ended 31 December 2018, which have been audited by our statutory auditors Deloitte
Bedrijfsrevisoren/Réviseurs d’Entreprises CVBA/SCRL in accordance with International Standards on Auditing as applied in Belgium
and resulted in an unqualified audit opinion. Financial data included in Figures 6, 8, 11, 12, 13 and 15 have been extracted from the
underlying accounting records as of and for the twelve months ended 31 December 2018 (except for the volume information).
23
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CONFERENCE CALL AND WEBCAST
Press Conference on Thursday, February 28, 2019:
10.30 am CET – Leuven, Belgium
Investor Conference call and webcast on Thursday, February 28, 2019:
3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode):
AB InBev FY18 Results Webcast
Conference call (with interactive Q&A):
AB InBev FY18 Results Conference Call
ANHEUSER-BUSCH INBEV CONTACTS
Investors Media
Lauren Abbott Pablo Jimenez
Tel: +1 212 573 9287 Tel: +1 212 573 9289
E-mail: lauren.abbott@ab-inbev.com E-mail: pablo.jimenez@ab-inbev.com
Mariusz Jamka Aimee Baxter
Tel: +32 16 276 888 Tel: +1 718 650 4003
E-mail: mariusz.jamka@ab-inbev.com E-mail: aimee.baxter@ab-inbev.com
Jency John Ingvild Van Lysebetten
Tel: +1 646 746 9673 Tel: +32 16 276 608
E-mail: jency.john@ab-inbev.com E-mail: Ingvild.vanlysebetten@ab-inbev.com
28 February 2019
JSE Sponsor: Questco Corporate Advisory 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 175,000 employees based in nearly 50 countries worldwide. For 2018, AB InBev’s reported
revenue was 54.6 billion USD (excluding JVs and associates).
24
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Annex 1
AB InBev Worldwide Scope Currency Organic FY18 Organic
FY17
Translation Growth Growth
Total volumes (thousand hls) 612 572 -47 185 - 1 679 567 066 0.3%
of which AB InBev own beer 507 692 -10 949 - 3 819 500 561 0.8%
Revenue 56 444 -2 600 -1 816 2 591 54 619 4.8%
Cost of sales -21 386 1 373 592 - 938 -20 359 -4.7%
Gross profit 35 058 -1,227 -1 224 1 653 34 259 4.9%
SG&A -18 099 603 443 - 65 -17 118 -0.4%
Other operating income/(expenses) 854 - 112 - 46 - 17 680 -2.2%
Normalized EBIT 17 814 - 736 - 827 1 570 17 821 9.0%
Normalized EBITDA 22 084 - 751 - 954 1 702 22 080 7.9%
Normalized EBITDA margin 39.1% 40.4% 118 bps
North America Scope Currency Organic FY18 Organic
FY17
Translation Growth Growth
Total volumes (thousand hls) 113 496 76 - -2 846 110 726 -2.5%
Revenue 15 588 19 13 - 117 15 504 -0.8%
Cost of sales -5 777 26 -6 - 30 -5 788 -0.5%
Gross profit 9 811 44 8 - 147 9 716 -1.5%
SG&A -4 361 - 75 -5 44 -4 396 1.0%
Other operating income/(expenses) 36 - - 4 40 10.7%
Normalized EBIT 5 486 - 31 3 - 99 5 360 -1.8%
Normalized EBITDA 6 329 - 30 4 - 153 6 150 -2.4%
Normalized EBITDA margin 40.6% 39.7% -68 bps
Latin America West Scope Currency Organic FY18 Organic
FY17
Translation Growth Growth
Total volumes (thousand hls) 110 625 - 71 - 4 922 115 476 4.5%
Revenue 9 238 -9 - 109 879 9 999 9.5%
Cost of sales -2 555 -3 32 - 196 -2 722 -7.7%
Gross profit 6 683 -12 - 76 682 7 277 10.2%
SG&A -2 876 10 32 13 -2 821 0.5%
Other operating income/(expenses) 89 - - 0.85 -1 87 -1.5%
Normalized EBIT 3 896 -2 - 45 694 4 544 17.8%
Normalized EBITDA 4 512 -2 - 52 738 5 196 16.4%
Normalized EBITDA margin 48.8% 52.0% 306 bps
Latin America North FY17 Scope Currency Organic FY18 Organic
Translation Growth Growth
Total volumes (thousand hls) 119 374 - 232 -4 172 114 969 -3.5%
Revenue 9 775 - 29 -1 044 288 8 990 3.0%
Cost of sales -3 744 14 389 - 63 -3 404 -1.7%
Gross profit 6 031 - 16 - 655 225 5 585 3.7%
SG&A -3 060 5 318 51 -2 686 1.7%
Other operating income/(expenses) 361 - 36 - 59 266 -16.3%
Normalized EBIT 3 332 - 10 - 373 216 3 165 6.5%
Normalized EBITDA 4 180 - 10 - 462 218 3 926 5.2%
Normalized EBITDA margin 42.8% 43.7% 95 bps
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Latin America South FY17 Scope Currency Organic FY18 Organic
Translation Growth Growth
Total volumes (thousand hls) 34 062 238 - 325 33 975 -1.0%
Revenue 3 363 - 218 - 990 709 2 863 21.3%
Cost of sales -1 207 -6 295 - 143 -1 060 -11.9%
Gross profit 2 156 - 224 - 695 567 1 803 26.7%
SG&A - 781 15 242 - 166 - 689 -21.4%
Other operating income/(expenses) 13 - 18 - 11 18 2 138.7%
Normalized EBIT 1 388 - 226 - 465 419 1 116 30.8%
Normalized EBITDA 1 595 - 163 - 534 483 1 381 30.8%
Normalized EBITDA margin 47.4% 48.2% 369 bps
EMEA FY17 Scope Currency Organic FY18 Organic
Translation Growth Growth
Total volumes (thousand hls) 131 692 -46 445 1 929 87 176 2.3%
of which AB InBev own beer 89 369 -10 353 1 850 80 865 2.3%
Revenue 10 344 -2 453 163 319 8 374 4.1%
Cost of sales -4 609 1 418 - 54 - 237 -3 482 -7.7%
Gross profit 5 735 -1 035 110 82 4 892 1.7%
SG&A -3 336 704 - 69 - 58 -2 760 -2.2%
Other operating income/(expenses) 108 - 29 18 98 21.1%
Normalized EBIT 2 507 - 359 40 42 2 230 1.9%
Normalized EBITDA 3 349 - 440 54 37 3 000 1.3%
Normalized EBITDA margin 32.4% 35.8% -100 bps
Asia Pacific FY17 Scope Currency Organic FY18 Organic
Translation Growth Growth
Total volumes (thousand hls) 101 986 95 2 185 104 266 2.1%
Revenue 7 804 39 155 473 8 470 6.1%
Cost of sales -3 201 - 23 - 72 - 237 -3 533 -7.4%
Gross profit 4 603 16 83 235 4 937 5.1%
SG&A -2 735 - 20 - 57 42 -2 770 1.6%
Other operating income/(expenses) 168 -1 4 -8 163 -5.0%
Normalized EBIT 2 035 -6 30 270 2 330 13.3%
Normalized EBITDA 2 695 -5 49 344 3 082 12.8%
Normalized EBITDA margin 34.5% 36.4% 218 bps
Global Export and Holding FY17 Scope Currency Organic FY18 Organic
Companies Translation Growth Growth
Total volumes (thousand hls) 1 336 - 846 - 13 478 -2.6%
Revenue 332 51 -5 41 419 12.2%
Cost of sales - 292 - 52 7 - 32 - 370 -10.8%
Gross profit 40 -2 2 9 49 23.8%
SG&A - 950 - 36 - 18 7 - 996 0.7%
Other operating income/(expenses) 79 - 65 -2 12 25 89.8%
Normalized EBIT - 830 - 102 - 18 28 - 923 3.0%
Normalized EBITDA - 577 - 101 - 13 35 - 656 5.2%
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Annex 2
AB InBev Worldwide 4Q17 Scope Currency Organic 4Q18 Organic
Translation Growth Growth
Total volumes (thousand hls) 145 977 -4 034 420 142 363 0.3%
of which AB InBev own beer 126 754 -3 307 1 502 124 949 1.2%
Revenue 14 600 81 -1 193 762 14 250 5.3%
Cost of sales -5 166 - 80 382 - 329 -5 193 -6.5%
Gross profit 9 434 1 - 811 433 9 057 4.6%
SG&A -4 668 - 70 308 276 -4 154 6.0%
Other operating income/(expenses) 307 - 24 - 24 - 93 166 -32.5%
Normalized EBIT 5 073 - 94 - 527 616 5 068 12.4%
Normalized EBITDA 6 189 - 26 - 607 610 6 166 10.0%
Normalized EBITDA margin 42.4% 43.3% 190 bps
North America 4Q17 Scope Currency Organic 4Q18 Organic
Translation Growth Growth
Total volumes (thousand hls) 26 231 - 116 26 114 -0.4%
Revenue 3 682 - 14 32 3 700 0.9%
Cost of sales -1 390 7 4 - 20 -1 399 -1.4%
Gross profit 2 292 7 - 10 12 2 301 0.5%
SG&A -1 072 - 23 5 71 -1 019 6.5%
Other operating income/(expenses) 14 14 28 105.0%
Normalized EBIT 1 234 - 16 -4 97 1 310 8.0%
Normalized EBITDA 1 457 - 16 -5 74 1 510 5.1%
Normalized EBITDA margin 39.6% 40.8% 165 bps
Latin America West Scope Currency Organic 4Q18 Organic
4Q17
Translation Growth Growth
Total volumes (thousand hls) 29 425 - 46 1 025 30 405 3.5%
Revenue 2 578 -7 - 116 245 2 699 9.5%
Cost of sales - 677 5 32 - 13 - 653 -1.9%
Gross profit 1 901 -2 - 85 232 2 046 12.2%
SG&A - 740 1 35 22 - 682 3.0%
Other operating income/(expenses) 59 -1 - 40 17 -68.9%
Normalized EBIT 1 219 -2 - 51 214 1 380 17.6%
Normalized EBITDA 1 377 -2 - 59 228 1 544 16.5%
Normalized EBITDA margin 53.4% 57.2% 344 bps
Latin America North 4Q17 Scope Currency Organic 4Q18 Organic
Translation Growth Growth
Total volumes (thousand hls) 34 881 - 56 -1 206 33 619 -3.5%
Revenue 3 134 -7 - 431 -1 2 695 0.0%
Cost of sales -1 008 4 161 - 180 -1 023 -17.9%
Gross profit 2 127 -3 - 270 - 181 1 672 -8.5%
SG&A - 914 1 114 150 - 648 16.5%
Other operating income/(expenses) 129 - 12 - 58 59 -44.7%
Normalized EBIT 1 341 -2 - 168 - 88 1 083 -6.6%
Normalized EBITDA 1 576 -2 - 201 - 88 1 285 -5.6%
Normalized EBITDA margin 50.3% 47.7% -279 bps
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Latin America South 4Q17 Scope Currency Organic 4Q18 Organic
Translation Growth Growth
Total volumes (thousand hls) 10 432 195 - 761 9 866 -7.4%
Revenue 1 076 227 - 472 230 1 060 21.7%
Cost of sales - 354 - 121 121 -5 - 359 -1.4%
Gross profit 722 106 - 351 225 702 31.7%
SG&A - 212 - 76 104 - 32 - 216 -15.4%
Other operating income/(expenses) 8 -5 -9 12 6 143.4%
Normalized EBIT 518 26 - 256 204 492 40.3%
Normalized EBITDA 570 71 - 283 217 574 38.8%
Normalized EBITDA margin 53.0% 54.2% 743 bps
EMEA 4Q17 Scope Currency Organic 4Q18 Organic
Translation Growth Growth
Total volumes (thousand hls) 26 238 -3 762 1 007 23 484 4.5%
of which AB InBev own beer 24 092 -3 084 912 21 920 4.3%
Revenue 2 322 - 162 - 83 106 2 183 5.0%
Cost of sales - 954 53 34 - 23 - 890 -2.7%
Gross profit 1 369 - 108 - 49 82 1 294 6.4%
SG&A - 731 47 24 - 19 - 678 -2.7%
Other operating income/(expenses) 34 - 17 -4 -4 9 -17.6%
Normalized EBIT 671 - 79 - 28 60 624 9.7%
Normalized EBITDA 891 - 59 - 35 4 802 0.5%
Normalized EBITDA margin 38.4% 36.7% -165 bps
Asia Pacific 4Q17 Scope Currency Organic 4Q18 Organic
Translation Growth Growth
Total volumes (thousand hls) 18 381 22 472 18 875 2.6%
Revenue 1 726 12 - 73 128 1 793 7.4%
Cost of sales - 701 -9 27 - 77 - 760 -11.0%
Gross profit 1 025 3 - 46 51 1 033 5.0%
SG&A - 727 -9 18 62 - 656 8.5%
Other operating income/(expenses) 66 -1 - 28 36 -43.4%
Normalized EBIT 364 -6 - 29 84 413 23.3%
Normalized EBITDA 528 -6 - 33 127 616 24.2%
Normalized EBITDA margin 30.6% 34.4% 476 bps
Global Export and Holding 4Q17 Scope Currency Organic 4Q18 Organic
Companies Translation Growth Growth
Total volumes (thousand hls) 388 - 388 -
Revenue 81 17 -3 23 118 28.3%
Cost of sales - 82 - 19 3 - 11 - 110 -12.5%
Gross profit -1 -2 -1 12 9 282.0%
SG&A - 272 - 11 7 22 - 255 7.8%
Other operating income/(expenses) -2 -2 4 11 11 123.5%
Normalized EBIT - 275 - 15 9 45 - 235 15.5%
Normalized EBITDA - 210 - 12 9 48 - 165 21.4%
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Reference Base 2018
AB InBev Worldwide 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 134 831 143 685 146 187 142 363 567 066
Revenue 13 090 13 764 13 514 14 250 54 619
Cost of sales -5 004 -5 092 -5 042 -5 182 -20 320
Gross profit 8 086 8 672 8 472 9 068 34 299
SG&A -4 318 -4 455 -4 254 -4 181 -17 209
Other operating income/(expenses) 186 211 220 197 814
Normalized EBIT 3 955 4 428 4 438 5 084 17 904
Normalized EBITDA 5 120 5 582 5 606 6 284 22 592
Normalized EBITDA margin 39.1% 40.6% 41.5% 44.1% 41.4%
North America 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 24 814 29 813 29 985 26 114 110 726
Revenue 3 460 4 181 4 162 3 700 15 504
Cost of sales -1 298 -1 534 -1 539 -1 394 -5 765
Gross profit 2 161 2 647 2 623 2 307 9 738
SG&A -1 049 -1 179 -1 161 -1 023 -4 413
Other operating income/(expenses) 1 1 11 28 40
Normalized EBIT 1 112 1 469 1 473 1 311 5 365
Normalized EBITDA 1 322 1 673 1 683 1 522 6 199
Normalized EBITDA margin 38.2% 40.0% 40.4% 41.1% 40.0%
Middle Americas 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 30 738 32 212 31 813 34 039 128 803
Revenue 2 705 2 892 2 876 3 141 11 614
Cost of sales - 811 - 851 - 837 - 836 -3 336
Gross profit 1 894 2 041 2 038 2 305 8 278
SG&A - 798 - 827 - 776 - 775 -3 176
Other operating income/(expenses) 6 21 44 17 88
Normalized EBIT 1 102 1 235 1 306 1 546 5 189
Normalized EBITDA 1 294 1 448 1 514 1 777 6 033
Normalized EBITDA margin 47.8% 50.1% 52.6% 56.6% 51.9%
South America 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 34 088 30 383 31 297 39 851 135 618
Revenue 2 861 2 101 1 964 3 313 10 238
Cost of sales -1 082 - 797 - 767 -1 196 -3 842
Gross profit 1 778 1 304 1 197 2 117 6 396
SG&A - 868 - 720 - 624 - 764 -2 976
Other operating income/(expenses) 82 74 47 65 267
Normalized EBIT 992 657 620 1 418 3 688
Normalized EBITDA 1 257 884 879 1 675 4 696
Normalized EBITDA margin 44.0% 42.1% 44.7% 50.6% 45.9%
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EMEA 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 20 549 21 340 21 803 23 484 87 176
Revenue 1 919 2 176 2 095 2 183 8 374
Cost of sales - 834 - 887 - 867 - 887 -3 475
Gross profit 1 085 1 289 1 228 1 297 4 898
SG&A - 722 - 751 - 699 - 708 -2 879
Other operating income/(expenses) 49 68 76 40 232
Normalized EBIT 412 606 605 629 2 251
Normalized EBITDA 660 847 833 846 3 187
Normalized EBITDA margin 34.4% 38.9% 39.8% 38.7% 38.1%
Asia Pacific 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 24 296 29 804 31 290 18 875 104 266
Revenue 2 040 2 327 2 310 1 793 8 470
Cost of sales - 870 - 958 - 944 - 760 -3 531
Gross profit 1 170 1 369 1 366 1 034 4 939
SG&A - 622 - 741 - 750 - 656 -2 769
Other operating income/(expenses) 41 43 43 36 163
Normalized EBIT 589 670 659 414 2 333
Normalized EBITDA 772 870 861 628 3 131
Normalized EBITDA margin 37.8% 37.4% 37.3% 35.0% 37.0%
Global Export and Holding companies 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018
Total volumes (thousand hls) 346 132 0 0 478
Revenue 106 87 107 118 419
Cost of sales - 107 - 65 - 88 - 110 - 370
Gross profit -1 22 19 9 49
SG&A - 260 - 236 - 244 - 255 - 996
Other operating income/(expenses) 8 5 0 11 25
Normalized EBIT - 253 - 209 - 225 - 235 - 922
Normalized EBITDA - 184 - 141 - 164 - 165 - 653
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