AB InBev Financial Results slide image

AB InBev Financial Results

Financial performance We are presenting our results under five regions: North America, Middle Americas, South America, EMEA and Asia Pacific. The tables in this management report provide the segment information per region for the period ended 31 December 2022 and 2021 in the format down to Normalized EBIT level that is used by management to monitor performance. The tables below provide a summary of our performance for the period ended 31 December 2022 and 2021 (in million US dollar, except volumes in thousand hectoliters) and the related comments are based on organic numbers. AB INBEV WORLDWIDE 2021 Scope Currency translation Organic growth 2022 Organic growth % Total volumes (thousand hls) 581 678 13 455 595 133 Revenue 54 304 Cost of sales (23 097) (395) 16 Gross profit 31 207 (378) SG&A (17 574) 365 (2 136) 1 006 (1130) 735 6 013 57 786 (4 230) (26 305) 1 782 (1 080) 31 481 (17 555) 2.3% 11.2% (18.4)% 5.8% (6.3)% Other operating income/(expenses) 805 (12) (15) 63 841 10.3% Normalized EBIT 14 438 (26) (410) 765 14 768 5.4% Normalized EBITDA Normalized EBITDA margin 19 209 35.4% (54) (669) 1 357 19 843 34.3% 7.2% (126) bps In 2022, our normalized EBITDA increased 7.2%, while our normalized EBITDA margin contracted 126 bps, reaching 34.3%. Consolidated volumes grew by 2.3%, with own beer volumes up 1.8% and non-beer volumes up 5.2%, driven by the investment in our marketing capabilities and consistent execution of our five proven and scalable category expansion levers. Consolidated revenue grew by 11.2% to 57 786m US dollar, with revenue per hectoliter growth of 8.6% driven by revenue management initiatives and continued premiumization. Combined revenues of our global brands, Budweiser, Stella Artois and Corona increased by 8.2% globally and 8.9% outside of their respective home markets. Consolidated cost of sales increased 18.4%, and increased 15.8% on a per hectoliter basis, driven by anticipated transactional foreign currency effects and commodity cost headwinds. Consolidated selling, general and administrative expenses (SG&A) increased 6.3% primarily due to elevated costs of distribution. Consolidated other operating income/(expenses) in 2022 increased by 10.3% primarily driven by sale of non-core assets and one-time gains. In 2022, Ambev 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 and does not impact the presented organic growth. Additionally, Ambev recognized 168m US dollar of interest income in Finance income in 2022 (2021: 118m US dollar) related to these credits. Underlying profit attributable to equity holders and underlying EPS were positively impacted by 186m US dollar after tax and non-controlling interest (2021: 165m US dollar). Ambev's tax credits and interest receivables are expected to be collected over a period exceeding 12 months after the reporting date. As of 31 December 2022, the total amount of such credits and interest receivables represented 1 149m US dollar. 4
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