Anheuser-Busch InBev SA/NV Q2 Earnings Call Highlights

Key Points

• Strong second-quarter results: Beer volumes grew 1.1%, total volumes rose 0.9%, and revenue increased 5.6% as AB InBev gained global market share. Underlying EPS climbed 23.4% to $1.21, while first-half free cash flow rose to $3.9 billion.
• Growth driven by key brands and digital channels: Mega-brand revenue increased 6.2%, Corona revenue outside Mexico rose 17%, and non-alcohol beer revenue jumped 27%. Digital marketplace GMV grew 16% to $15 billion, with third-party BEES sales up 50%.
• China remains a weak spot, but outlook reaffirmed: China revenue declined 8.8% amid weak on-premise demand and adverse weather, although market-share trends improved sequentially. Management maintained its 2026 EBITDA growth forecast of 4% to 8% while continuing to reduce leverage.

Anheuser-Busch InBev SA/NV NYSE: BUD reported higher second-quarter revenue, earnings and free cash flow as beer volumes returned to growth and the brewer gained market share globally, while management said conditions remained challenging in China.

Chief Executive Officer Michel Doukeris said beer volumes increased 1.1% in the second quarter, supported by record second-quarter volumes in markets including Mexico, Colombia and Ecuador. Total volumes rose 0.9%, while revenue increased 5.6% and revenue per hectoliter advanced 4.2%, driven by mix and revenue-management actions intended to offset rising inflation and input costs.

Underlying earnings per share rose 23.4% to $1.21. First-half free cash flow increased by $2.5 billion to $3.9 billion, the company said.

Portfolio growth and regional performance

Doukeris said the company’s mega brands, non-alcohol beer offerings and Beyond Beer portfolio contributed to growth. Revenue from mega brands increased 6.2%, while Corona revenue outside Mexico rose 17%. Corona posted double-digit volume gains in 37 markets, according to the company.

Non-alcohol beer revenue increased 27%, led by Corona Cero and Michelob ULTRA Zero. Management estimated that 60% of non-alcohol beer volume came from new occasions and new consumers. In the U.S., Busch Light Apple, which returned in April, became the second-largest volume share gainer in the total industry during the quarter, Doukeris said.

In North America, AB InBev said it gained share in beer and Beyond Beer. Michelob ULTRA, Busch Light and Busch Light Apple were the top three beer volume share gainers in the U.S. industry, according to management. The company’s Beyond Beer revenue grew in the mid-70% range, led by Cutwater’s triple-digit revenue growth. Doukeris said Cutwater was the top share-gaining brand in the U.S. spirits industry during the quarter.

• Mexico: Revenue grew in premium, mainstream, non-alcohol beer and Beyond Beer, producing mid-single-digit revenue growth and high-single-digit bottom-line growth, with market share gains.
• Colombia: Record second-quarter volumes supported double-digit top- and bottom-line growth. Management estimated its portfolio gained share of total alcohol.
• Brazil: Beer volumes increased as the company gained market share and industry conditions improved. Premium and super-premium brands grew volume in the mid-20% range.
• Europe and South Africa: European volumes rose by low single digits, while South Africa posted mid-single-digit top- and bottom-line growth. South African premium and super-premium beer volumes grew in the high-20% range.

China remained a weak spot. Revenue in the market declined 8.8% as AB InBev underperformed what Doukeris characterized as a soft industry affected by adverse weather and continued weakness in on-premise consumption. He said the Chinese beer industry could decline by a high-single-digit percentage in the second quarter, based on the company’s view as data is consolidated.

While AB InBev’s China volumes remained under pressure, Doukeris said its market-share trend improved sequentially. Its super-premium and core-plus brands returned to growth, and the company is investing in brand building, execution and expansion of its in-home and off-trade presence.

Digital platforms and marketplace expansion

AB InBev said its digital ecosystem processed $15 billion in gross merchandise value during the second quarter, up 16% from a year earlier. The company said it has more than 25 billion annualized AI-driven touchpoints across its ecosystem.

The BEES marketplace’s gross merchandise value from third-party products increased 50% to $1.2 billion. Digital direct-to-consumer platforms served 13 million consumers and generated $165 million in revenue. The company said its growing direct-to-consumer marketplace has annualized GMV of $200 million.

During the question-and-answer session, Doukeris said the marketplace has been profitable since its inception and is incremental to EBITDA. He described it as equivalent in size to a top-20 country for the company and as one of the top 10 contributors to EBITDA growth.

Investment, cash flow and capital allocation

Chief Financial Officer Fernando Tennenbaum said AB InBev invested $7.9 billion in sales and marketing over the last 12 months and increased those investments organically by 9% in the first half. Disciplined overhead management and resource allocation helped offset transactional foreign-exchange headwinds while allowing the company to maintain margins and increase commercial investments, he said.

Constant-currency EPS increased 12.9%, while translation effects helped lift dollar-denominated EPS by 23.4%. Tennenbaum attributed the first-half free-cash-flow improvement to EBITDA growth and working-capital improvements.

The company increased its dividend, repurchased shares and completed selective acquisitions, including MCC and BeatBox, while continuing to reduce leverage. Net debt to EBITDA improved 0.4 turns year over year to 2.86 times. Tennenbaum said AB InBev has no bonds maturing in 2026, a weighted-average bond maturity of 12 years and no financial covenants.

Management reaffirmed its outlook for 2026 EBITDA growth of 4% to 8%. Tennenbaum said the company continues to expect growth to be more evenly distributed between the first and second halves of the year, although sales and marketing spending is expected to be more weighted toward the second and third quarters, partly reflecting World Cup-related activity.

About Anheuser-Busch InBev SA/NV (NYSE:BUD)

Anheuser-Busch InBev SA/NV NYSE: BUD is a multinational brewing company headquartered in Leuven, Belgium. It is one of the world's largest brewers and is primarily engaged in the production, distribution and marketing of beer and related beverages. The company's operations span brewing, packaging, logistics and retail/customer sales support, serving a broad set of channels from on-premise hospitality to retail and e-commerce.

AB InBev's portfolio includes a mix of global, regional and local beer brands across mainstream, premium, craft and non-alcoholic categories.

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