AB InBev Financial Results slide image

AB InBev Financial Results

Currency Organic Asia Pacific 2021 Scope translation growth 2022 Organic growth % Total volumes (thousand hls) 88 379 4 515 88 898 0.6% Revenue 6 848 (132) (343) 159 6 532 Cost of sales (3 048) (1) 157 (275) (3 168) Gross profit 3 800 (134) (186) (116) 3 364 SG&A (2 330) 128 115 20 Other operating income/(expenses) Normalized EBIT 139 (4) 2 1 609 Normalized EBITDA Normalized EBITDA margin 2 321 55 (5) (76) (94) 1 433 (2067) 137 1.3% (5.9)% 2.4% (9.0)% (3.2)% 0.9% (5) (105) (106) 2 104 (4.6)% 33.9% 32.2% (234) bps Currency Organic Global Export and Holding Companies 2021 Scope translation growth 2022 Organic growth % Total volumes (thousand hls) 1 558 (607) (112) 838 (11.8)% Revenue 1 133 (190) (45) (107) 790 (11.4)% Cost of sales (880) 52 29 60 (740) 7.3% Gross profit 252 (139) (16) (47) 50 (40.9)% SG&A (1709) 246 88 (72) (1447) (4.8)% Other operating income/(expenses) 1 1 (1) 1 Normalized EBIT (1457) 108 73 (120) (1 396) (8.6)% Normalized EBITDA (1 093) 108 41 (60) (1 004) (5.9)% REVENUE Our consolidated revenue grew by 11.2% to 57 786m US dollar with revenue per hectoliter growth of 8.6% in 2022 driven by revenue management initiatives and continued premiumization. COST OF SALES Our cost of sales increased by 18.4% and increased by 15.8% on a per hectoliter basis, driven by anticipated transactional foreign currency effects and commodity headwinds. OPERATING EXPENSES Our total operating expenses increased 6.1% in 2022: Selling, General & Administrative Expenses (SG&A) increased by 6.3% due primarily to elevated costs of distribution. Other operating income increased 10.3% primarily driven by the sale of non-core assets and one-time gains. In addition, in 2022, Ambev, our subsidiary, recognized 201m US dollar income in Other operating income related to tax credits in Brazil (2021: 226m US dollar). The net impact is presented as a scope change. NORMALIZED PROFIT FROM OPERATIONS BEFORE DEPRECIATION AND AMORTIZATION (NORMALIZED EBITDA) Our normalized EBITDA increased 7.2% organically to 19 843m US dollar, with an EBITDA margin of 34.3%, representing an EBITDA margin organic contraction of 126 bps, as our top-line growth was partially offset by anticipated transactional foreign currency effects and commodity headwinds and higher SG&A. Differences in normalized EBITDA margins by region are due to a number of factors such as different routes to market, share of returnable packaging in the region's sales and premium product mix. RECONCILIATION BETWEEN NORMALIZED EBITDA AND PROFIT ATTRIBUTABLE TO EQUITY HOLDERS Normalized EBITDA and EBIT are measures utilized by us to demonstrate the company's underlying performance. Normalized EBITDA is calculated excluding the following effects from profit attributable to our equity holders: (i) Non-controlling interest, (ii) Income tax expense, (iii) Share of results of associates, (iv) Non-underlying share of results of associates, (v) Net finance cost, (vi) Non-underlying net finance cost, (vii) Non-underlying items above EBIT (including non-underlying impairment) and (viii) Depreciation, amortization and impairment. 8
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