AB InBev Financial Results
In the biotech space, our R&D teams are working on solutions to upcycle co-product streams, but also to provide protein
solutions through precision fermentation.
Knowledge management and learning is also an integral part of R&D. We seek to continuously increase our knowledge
through collaborations with universities, startups and suppliers. We believe strongly in open innovation as an answer to
rapidly changing needs and external environment, and our innovation process is designed to create an innovation
ecosystem.
Our R&D team is deeply connected with the company's and the business regions' priorities and approves concepts which
are subsequently prioritized for development. The R&D teams invest in both short- and long-term strategic projects for
future growth, with the launch time depending on complexity and prioritization. Launch time usually falls within the next
calendar year, but at the same time new concepts are developed that will only be implemented within a time horizon of
2-5 years.
The Global Innovation and Technology Center ("GITEC"), located in Leuven, accommodates the Packaging, Product,
Process Development teams and facilities such as Labs, Experimental Brewery and the European Central Lab, which also
includes Sensory Analysis. In addition to GITEC, we also have Product, Packaging and Process development teams
located in each of our geographic regions focusing on the short-term needs of such regions.
Risks and uncertainties
Under the explicit understanding that this is not an exhaustive list, AB InBev's major risk factors and uncertainties are listed
below. There may be additional risks which AB InBev is unaware of. There may also be risks AB InBev now believes to be
immaterial, but which could turn out to have a material adverse effect. Moreover, if and to the extent that any of the risks
described below materialize, they may occur in combination with other risks which would compound the adverse effect of
such risks. The sequence in which the risk factors are presented below is not indicative of their likelihood of occurrence or
of the potential magnitude of their financial consequence.
AB InBev's business, financial condition and operating results have been and may continue to be negatively impacted by
risks associated with global, regional and local economic weakness and uncertainty, including those resulting from an
economic downturn, inflation, geopolitical instability (such as the ongoing conflict between Russia and Ukraine), increases
in energy prices, the COVID-19 pandemic, changes in government policies and/or increased interest rates. Consumption
of beer and other alcohol and non-alcohol beverages in many of the jurisdictions in which AB InBev operates is closely
linked to general economic conditions and changes in disposable income. Difficult macroeconomic conditions in AB InBev's
key markets have adversely affected the demand for AB InBev's products in the past and may in the future have a material
adverse effect on the demand for AB InBev's products, which in turn could result in lower revenue and reduced profit. The
prevailing geopolitical instability and sustained inflation (including as a result of the ongoing conflict between Russia and
Ukraine) have resulted in increased pressure on the supply chain and increased energy costs, which may increase AB
InBev's costs of manufacturing, selling and delivering its products. In cases of sustained and elevated inflation across
several of its key markets, it may be difficult for AB InBev to effectively manage the increases to its costs and it may not
able to pass these increased costs to its customers. Significant further deterioration in economic conditions may also cause
AB InBev's suppliers, distributors and other third-party partners to experience financial or operational difficulties that they
cannot overcome, impairing their ability to satisfy their obligations to AB InBev, in which case AB InBev's business and
results of operations could be adversely affected.
A continuation or worsening of the levels of market disruption and volatility seen in the recent past could have an adverse
effect on AB InBev's ability to access capital, its business, results of operations and financial condition, and on the market
price of its shares and American Depositary Shares.
The ongoing conflict between Russia and Ukraine has adversely affected, and may continue to adversely affect AB InBev's
business, financial performance and results of operations. In March 2022, AB InBev announced that it is forfeiting all
financial benefits as a non-controlling partner from the operations of the AB InBev Efes joint venture. In April 2022, AB
InBev announced its decision to sell its non-controlling interest in the AB InBev Efes joint venture, and that it is in active
discussions with its partner, Turkish Brewer Anadolu Efes, to acquire this interest. As a result, AB InBev de-recognized
the investment in AB InBev Efes and reported a 1.1 US billion non-cash impairment charge in exceptional share of results
of associates as part of its first quarter results announcement. Any potential divestment of AB InBev's non-controlling
interest in the AB InBev Efes joint venture will be subject to customary closing conditions, including regulatory approvals
in Russia and Ukraine, and there can be no guarantee that necessary regulatory approvals will be obtained or that AB
InBev will be successful in divesting its interest. In connection with the ongoing conflict, various governmental authorities,
including in the E.U. and the U.S., have imposed sanctions and other restrictive measures against Russia, including export
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