Lafleur Minerals Inc. press release
AB InBev Reports Second Quarter 2025 Results
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Consistent execution of our strategy delivered an EBITDA increase of 6.5%, continued margin expansion and high-single digit Underlying EPS growth
Anheuser-Busch InBev (Brussel:ABI) (BMV:ANB) (JSE:ANH) (NYSE:BUD):
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AB InBev's three strategic pillars.
Regulated information 1
“Beer is a passion point for consumers. The resilience of the beer category and the continued momentum of our megabrands delivered another quarter of profitable growth. EBITDA increased by 6.5% and the ongoing optimization of our business drove Underlying EPS growth of 8.7%. While the operating environment remains dynamic, the consistent execution of our strategy by our teams and partners drove a solid first half of the year and reinforces our confidence in delivering on our outlook for 2025.” – Michel Doukeris, CEO, AB InBev
| Revenue
+3.0%
Revenue increased by 3.0% in 2Q25 with revenue per hl growth of 4.9% and by 2.3% in HY25 with revenue per hl growth of 4.3%.
Reported revenue decreased by 2.1% in 2Q25 to 15 004 million USD and by 4.2% in HY25 to 28 632 million USD, impacted by unfavorable currency translation.
5.6% increase in combined revenues of our megabrands, led by Corona, which grew by 7.7% outside of its home market in 2Q25.
33% increase in revenue of our no-alcohol beer portfolio in 2Q25.
63% increase in Gross Merchandise Value (GMV) from sales of third-party products through BEES Marketplace to reach 785 million USD in 2Q25.
Volumes
-1.9%
Volumes declined by 1.9% in 2Q25, with beer volumes down by 2.2% and non-beer volumes up by 0.3%.
Volumes declined by 2.0% in HY25, with beer volumes down by 2.3% and non-beer volumes flat. | Normalized EBITDA
+6.5%
Normalized EBITDA increased by 6.5% to 5 301 million USD in 2Q25, with a margin expansion of 116bps to 35.3%. Normalized EBITDA increased by 7.2% to 10 156 million USD in HY25, with a margin expansion of 166bps to 35.5%.
Underlying Profit
1 950 million USD
Underlying Profit was 1 950 million USD in 2Q25 compared to 1 811 million USD in 2Q24 and was 3 556 million USD in HY25 compared to 3 320 million USD in HY24.
Reported profit attributable to equity holders of AB InBev was 1 676 million USD in 2Q25 compared to 1 472 million USD in 2Q24, negatively impacted by non-underlying items, and was 3 824 million in HY25 compared to 2 564 million in HY24, positively impacted by non-underlying items.
Underlying EPS
0.98 USD
Underlying EPS increased by 8.7% to 0.98 USD in 2Q25, compared to 0.90 USD in 2Q24, and increased by 8.0% to 1.79 USD in HY25, compared to 1.66 USD in HY24.
On a constant currency basis, Underlying EPS increased by 17.4% in 2Q25 and by 18.7% in HY25. | | Net Debt to EBITDA
3.27x
Net debt to normalized EBITDA ratio was 3.27x at 30 June 2025 compared to 3.42x at 30 June 2024 and 2.89x at 31 December 24. | |
| The 2025 Half Year Financial Report is available on our website at www.ab-inbev.com |
| 1 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. For important disclaimers and notes on the basis of preparation, please refer to page 16. |
Management comments
Consistent execution of our strategy delivered an EBITDA increase of 6.5%, continued margin expansion and high-single digit Underlying EPS growth
Our 2Q25 and HY25 results demonstrate the resilience of our strategy and ability of our business to deliver reliable compounding growth. In 2Q25, increased investments in our brands, expansion of our premium portfolio and innovation in balanced choices, combined with our revenue management decisions drove an acceleration in revenue growth, top- and bottom line increases in four of our five operating regions and continued growth in our overall portfolio brand power.
Revenue increased in 70% of our markets and by 3.0% overall, driven by a revenue per hl increase of 4.9%. Volumes declined by 1.9%, impacted by soft industries and performance in China and Brazil. While overall volumes were below potential, underlying momentum continued in the remainder of our footprint, with volume growth of 0.7% outside of these two countries. Top-line growth combined with disciplined resource allocation and overhead management drove an EBITDA increase of 6.5%, margin expansion of 116bps and Underlying EPS growth of 17.4% in constant currency and 8.7% in USD to reach 0.98 USD.
Progressing our strategic priorities
We continue to execute on and invest in three key strategic pillars to deliver consistent growth and long-term value creation.
(1) Lead and grow the category:
Our overall portfolio brand power grew in 2Q25 driven by increased marketing investment and effectiveness. In addition, we estimate that we gained or maintained market share in 60% of our markets in HY25.
(2) Digitize and monetize our ecosystem:
BEES Marketplace captured 785 million USD in GMV from sales of third-party products, a 63% increase versus 2Q24. Overall BEES GMV increased by 10% versus 2Q24, reaching 12.2 billion USD.
(3) Optimize our business:
We continued to make progress on deleveraging with net debt to EBITDA reaching 3.27x as of 30 June 2025 versus 3.42x as of 30 June 2024. In HY25, we invested 5.0 billion USD in capex and sales and marketing while delivering free cash flow of approximately 1.4 billion USD, a 0.5 billion USD increase versus HY24.
(1) Lead and grow the category
Our performance across each of our category expansion levers drove an estimated increase in the percentage of legal drinking age consumers purchasing our portfolio across our key markets, with increases led by our megabrands and no-alcohol beer portfolio. We continue to invest in our megabrands and mega platforms with our sales and marketing investments increasing to 3.6 billion USD in HY25, a 4% increase versus HY24. According to the Kantar BrandZ 2025 report, our portfolio holds 8 of the top 10 most valuable beer brands in the world, with Corona and Budweiser #1 and #2 respectively. Our marketing effectiveness and creativity were recognized by being named the most effective marketer in the world by both Effies and the World Advertising Research Center for the 4 th year in a row.
_Core Superiority: _Revenue of our mainstream portfolio increased by 0.4% in 2Q25, driven by high-single digit growth in Peru and mid-single digit growth in Colombia and Mexico. _Premiumization: _Corona led our premium performance in 2Q25, increasing revenue by 7.7% outside of Mexico with double-digit volume growth in more than 30 markets. Our overall above core beer portfolio delivered a 5.1% revenue increase. _Balanced Choices: _Growth in 2Q25 was led by our no-alcohol beer portfolio which delivered a 33% revenue increase and is estimated to have gained share of no-alcohol beer across our footprint, led by Corona Cero which nearly doubled volumes versus 2Q24. Our overall balanced choices portfolio of low carb, sugar free, gluten free and no- and low-alcohol beer brands delivered a revenue increase of 7.9%. _Beyond Beer: _The momentum of our Beyond Beer portfolio continued in 2Q25, led by the double-digit revenue growth of Cutwater in the US and Beats in Brazil which drove an overall revenue increase of 6.4%.
(2) Digitize and monetize our ecosystem
_Digitizing our relationships with more than 6 million customers globally: _As of 30 June 2025, BEES was live in 28 markets with 71% of our revenues captured through B2B digital platforms. In 2Q25, BEES captured 12.2 billion USD in GMV, growth of 10% versus 2Q24. _Monetizing our route-to-market: _BEES Marketplace GMV growth accelerated in 2Q25, growing by 63% versus 2Q24 to reach 785 million USD from sales of third-party products. _Leading the way in DTC solutions: _Our omnichannel DTC ecosystem of digital and physical products generated revenue of approximately 335 million USD in 2Q25. Our DTC megabrands, Zé Delivery, TaDa Delivery and PerfectDraft, generated 18.2 million e-commerce orders and delivered 134 million USD in revenue this quarter, representing 6% growth versus 2Q24.
(3) Optimize our business
_Maximizing value creation: _EBITDA grew by 6.5% and EBIT by 10.2% in 2Q25 as disciplined resource allocation and overhead management drove continued margin expansion. The combination of the optimization of our net finance costs and net working capital, and improved capex efficiency delivered free cash flow of approximately 1.4 billion USD in HY25, a 0.5 billion USD improvement versus HY24. We continued to progress on our deleveraging with our net debt to EBITDA ratio reaching 3.27x versus 3.42x as of 30 June 2024. As is typical, the ratio increased versus FY24 due to the seasonality of our cash flow generation and cash outflow for our increased full year dividend and share buyback program. _Advancing our sustainability priorities: _In Climate Action, our Scopes 1 and 2 emissions per hectoliter of production was 4.30 kgCO2e/hl in HY25, a reduction of 47% versus our 2017 baseline. In Water Stewardship, our water use efficiency ratio improved to 2.40 hl per hl in HY25 versus 2.50 hl per hl in HY24.
Delivering reliable compounding growth
In the first half of this year, our business delivered an EBITDA increase of 7.2% with margin expansion of 166bps and Underlying EPS growth of 8.0% in USD. We made strategic choices across revenue management, resource allocation, and increased sales and marketing investments to lead and grow the category. We continued to make progress on deleveraging while paying an increased dividend to our shareholders and completing our 2 billion USD share buyback program. Our footprint has structural tailwinds for long-term volume growth with favorable demographics, ongoing economic development and opportunities to increase category participation. Our consistent performance and the fundamental strengths of our business reinforce our confidence in our ability to deliver our FY25 outlook and long-term value creation.
2025 Outlook
(i) Overall Performance: We expect our EBITDA to grow in line with our medium-term outlook of between 4-8%. The outlook for FY25 reflects our current assessment of inflation and other macroeconomic conditions.
(ii) Net Finance Costs: Net pension interest expenses and accretion expenses are expected to be in the range of 190 to 220 million USD per quarter, depending on currency and interest rate fluctuations. We expect the average gross debt coupon in FY25 to be approximately 4%.
(iii) Effective Tax Rate (ETR): We expect the normalized ETR in FY25 to be in the range of 26% to 28%. The ETR outlook does not consider the impact of potential future changes in legislation.
(iv) Net Capital Expenditure: We expect net capital expenditure of between 3.5 and 4.0 billion USD in FY25.
| Figure 1. Consolidated performance | | | | | | | | | | | in USD Mio, except EPS in USD per share and Volumes in thousand hls | | 2Q24 | | 2Q25 | | Organic | | | | | | | | | | | growth | | | | | Volumes | | 146 302 | | | 143 347 | | | (1.9 | )% | | Beer | | 127 242 | | | 124 778 | | | (2.2 | )% | | Non-Beer | | 19 059 | | | 18 569 | | | 0.3 | % | | Revenue | | 15 333 | | | 15 004 | | | 3.0 | % | | Gross profit | | 8 567 | | | 8 446 | | | 4.0 | % | | Gross margin | | 55.9 | % | | 56.3 | % | | 55bps | | | Normalized EBITDA | | 5 302 | | | 5 301 | | | 6.5 | % | | Normalized EBITDA margin | | 34.6 | % | | 35.3 | % | | 116bps | | | Normalized EBIT | | 3 905 | | | 4 013 | | | 10.2 | % | | Normalized EBIT margin | | 25.5 | % | | 26.7 | % | | 179bps | | | | | | | | | | | | | | Profit attributable to equity holders of AB InBev | | 1 472 | | | 1 676 | | | | | | Underlying Profit | | 1 811 | | | 1 950 | | | | | | | | | | | | | | | | | Basic EPS | | 0.73 | | | 0.84 | | | | | | Underlying EPS | | 0.90 | | | 0.98 | | | | |
| | | HY24 | | HY25 | | Organic | | | | | | | | | | | growth | | | | | Volumes | | 285 837 | | | 279 615 | | | (2.0 | )% | | Beer | | 246 767 | | | 241 390 | | | (2.3 | )% | | Non-Beer | | 39 070 | | | 38 225 | | | 0.0 | % | | Revenue | | 29 880 | | | 28 632 | | | 2.3 | % | | Gross profit | | 16 461 | | | 16 029 | | | 4.6 | % | | Gross margin | | 55.1 | % | | 56.0 | % | | 127bps | | | Normalized EBITDA | | 10 288 | | | 10 156 | | | 7.2 | % | | Normalized EBITDA margin | | 34.4 | % | | 35.5 | % | | 166bps | | | Normalized EBIT | | 7 547 | | | 7 601 | | | 10.3 | % | | Normalized EBIT margin | | 25.3 | % | | 26.5 | % | | 198bps | | | | | | | | | | | | | | Profit attributable to equity holders of AB InBev | | 2 564 | | | 3 824 | | | | | | Underlying Profit | | 3 320 | | | 3 556 | | | | | | | | | | | | | | | | | Basic EPS | | 1.28 | | | 1.92 | | | | | | Underlying EPS | | 1.66 | | | 1.79 | | | | |
| Figure 2. Volumes | | | | | | | | | | | | | | | | | | in thousand hls | | 2Q24 | | Scope | | Organic | | 2Q25 | | Organic growth | | | | | | | | | | | | | | growth | | | | Total | | Beer | | | | | | North America | | 22 639 | | (330 | ) | | 68 | | | 22 376 | | 0.3 | % | | (0.0 | )% | | Middle Americas | | 38 381 | | - | | | 441 | | | 38 822 | | 1.1 | % | | 1.5 | % | | South America | | 35 969 | | - | | | (1 770 | ) | | 34 199 | | (4.9 | )% | | (6.8 | )% | | EMEA | | 23 852 | | 112 | | | 208 | | | 24 172 | | 0.9 | % | | 0.6 | % | | Asia Pacific | | 25 399 | | - | | | (1 683 | ) | | 23 716 | | (6.6 | )% | | (6.5 | )% | | Global Export and Holding Companies | | 62 | | (6 | ) | | 6 | | | 62 | | 10.4 | % | | 10.4 | % | | AB InBev Worldwide | | 146 302 | | (224 | ) | | (2 730 | ) | | 143 347 | | (1.9 | )% | | (2.2 | )% |
| | | HY24 | | Scope | | Organic | | HY25 | | Organic growth | | | | | | | | | | | | | | growth | | | | Total | | Beer | | | | | | North America | | 43 992 | | (474 | ) | | (1 299 | ) | | 42 218 | | (3.0 | )% | | (3.2 | )% | | Middle Americas | | 74 072 | | - | | | (169 | ) | | 73 903 | | (0.2 | )% | | 0.1 | % | | South America | | 76 315 | | - | | | (1 226 | ) | | 75 089 | | (1.6 | )% | | (2.5 | )% | | EMEA | | 44 882 | | 77 | | | (35 | ) | | 44 924 | | (0.1 | )% | | (0.4 | )% | | Asia Pacific | | 46 444 | | (93 | ) | | (2 987 | ) | | 43 365 | | (6.4 | )% | | (6.3 | )% | | Global Export and Holding Companies | | 132 | | (9 | ) | | (7 | ) | | 116 | | (5.7 | )% | | (5.7 | )% | | AB InBev Worldwide | | 285 837 | | (498 | ) | | (5 724 | ) | | 279 615 | | (2.0 | )% | | (2.3 | )% |
Key Markets Performance
United States: Michelob Ultra momentum drove continued market share gain and top- and bottom-line growth
Operating performance: 2Q25: Revenue grew by 2.1% with revenue per hl increasing by 1.8% driven by revenue management initiatives and premiumization. Sales-to-retailers (STRs) declined by 2.1%, estimated to have outperformed a soft industry. Sales-to-wholesalers (STWs) grew by 0.2%. EBITDA increased by 4.2% driven by top-line growth and productivity initiatives, even as we continued to increase our marketing investments to fuel momentum. HY25: Revenue declined by 1.5%, with revenue per hl increasing by 1.8%. STRs declined by 3.5% and STWs were down by 3.2%, and we expect our STRs and STWs to converge on a full year basis. EBITDA increased by 1.4%.
Commercial highlights: Increased investment and consistent execution drove our momentum with our portfolio continuing to gain market share of the beer industry, according to Circana. Our performance was led by Michelob Ultra and Busch Light, which continued to be the #1 and #2 volume share gainers in the industry. We are the leaders in no-alcohol beer, with our portfolio growing volumes in the high-twenties, and we are leading the industry in innovation with Michelob Ultra Zero and Busch Light Apple the top 2 innovations in the beer industry year-to-date. In Beyond Beer, our spirits-based RTD portfolio delivered low-teens volume growth, led by Cutwater and Nütrl.
Mexico: Continued momentum drove mid-single digit top- and bottom-line growth
Operating performance: 2Q25: Revenue increased by mid-single digits, with low-single digit revenue per hl growth driven by revenue management initiatives. Volumes increased by low-single digits, slightly outperforming the industry which benefitted from Easter shipment phasing in April but was negatively impacted by adverse weather in June. EBITDA grew by mid-single digits. HY25: Revenue grew by mid-single digits with revenue per hl growth of mid-single digits and volumes increasing by low-single digits. EBITDA grew by high-single digits with margin expansion.
Commercial highlights: Our performance was led by our above core beer portfolio, which grew revenue by high-single digits driven by Modelo and Michelob Ultra, while our core beer brands delivered mid-single digit revenue growth. We are leading the growth in no-alcohol beer with Corona Cero growing volume by strong double-digits and now the #1 no-alcohol beer brand in the country, according to Nielsen. We continued to progress our digital initiatives, with BEES Marketplace growing GMV by 30% versus 2Q24 and our digital DTC platform, TaDa Delivery, fulfilling more than 1.2 million orders, a 6% increase versus 2Q24.
Colombia: Record high volume drove high single-digit top- and bottom-line growth
Operating performance: 2Q25: Revenue increased by high-single digits with mid-single digit revenue per hl growth, driven by revenue management initiatives. Volumes grew by low-single digits, with our portfolio estimated to have gained share of total alcohol. EBITDA grew by high-single digits with margin expansion. HY25: Revenue grew by mid-single digits with mid-single digit revenue per hl growth. Volumes increased by low-single digits. EBITDA grew by low-teens with margin expansion.
Commercial highlights: Our above core beer brands led our performance, delivering mid-single digit volume growth and driving record high second quarter volumes. Our core beer portfolio delivered a mid-single digit revenue increase driven by Aguila.
Brazil: Revenue declined by 1.9% impacted by volume; disciplined revenue and cost management drove mid-single digit bottom-line growth with margin expansion
Operating performance: 2Q25: Revenue declined by 1.9% with revenue per hl growth of 4.9% driven by revenue management initiatives and premiumization. Total volumes declined by 6.5%, with beer volume decreasing by 9.0%, cycling a strong performance in 2Q24 and underperforming a soft industry, which was primarily impacted by adverse weather. Non-beer volumes grew by 0.3%. EBITDA increased by 5.3% with margin expansion of 216bps as productivity initiatives and SG&A efficiencies more than offset transactional FX headwinds. HY25: Revenue grew by 1.5% with revenue per hl growth of 4.0%. Total volumes declined by 2.4% with beer volumes declining by 4.0% and non-beer volumes increasing by 1.9%. EBITDA increased by 9.7% with margin expansion of 254bps.
Commercial highlights: Our premium and super premium beer brands led our performance in 2Q25, delivering mid-teens volume growth, driven by Corona and Original. Our portfolio of balanced choices drove incremental growth with volumes of our no-alcohol beer brands increasing by mid-teens and Stella Artois Gluten Free more than doubling. We continue to invest to increase the brand power of our portfolio, mainstream volumes however declined this quarter, impacted by a soft industry. Non-beer performance was driven by our low- and no-sugar portfolio, which grew volumes in the low-thirties. We continued to progress our digital initiatives, with BEES Marketplace GMV more than doubling versus 2Q24, and our digital DTC platform, Zé Delivery, reaching 5.3 million monthly active users.
Europe: Improved industry, continued premiumization and margin recovery delivered top- and bottom-line growth
Operating performance: 2Q25: Revenue grew by low-single digits with low-single digit revenue per hl growth driven by continued premiumization. Volumes were flat, supported by estimated market share gains in 5 of our 6 key markets and an improved industry as weather normalized. EBITDA grew by low-single digits with margin recovery. HY25: Revenue was flattish with low-single digit revenue per hl growth. Volume declined by low-single digits, estimated to have outperformed the industry in 5 of our 6 key markets. EBITDA grew by mid-single digits with margin recovery.