Our own beer volume trends improved in the second quarter compared to the first quarter, but not at the speed that we had
anticipated. Our total volumes declined by 4.7% in 2Q16, with beer volumes declining by 4.5% compared to a decline of 10.0% in 1Q16, and soft drink volumes down 5.2%. Although the Brazil beer market remains very competitive, our market share trend
improved in the second quarter. Our premium and near beer brands, which accounted for more than 10% of our total beer volumes in HY16, continue to grow. Budweiser, the leading premium brand in the industry, grew volumes by double digits in both 2Q16
and HY16.
Our top-line initiatives remain the priority in Brazil, with our focus continuing to be on the execution
of our affordability strategies, the elevation of our core brands and the growth of our premium portfolio. Our initiatives also include activations around the Olympic Games during 3Q16.
Brazil beer revenue per hl increased by 6.9% in the quarter, reflecting our revenue management initiatives, increased own distribution volumes and premium
brand mix, partly offset by growth in our returnable glass bottle mix. Growth of returnable glass bottles is an important component of our affordability strategy, allowing us to achieve an attractive consumer price point and positively impacting
profitability.
Net revenue in Brazil grew by 2.0% in 2Q16. However, given the results of the first six months, we are amending our net revenue
guidance for Brazil. Our previous guidance was for net revenue to grow by mid to high single digits in FY16. We now expect net revenue in FY16 to be flat with FY15, due to the weak consumer environment and the increased mix of returnable glass
bottles, which are accretive for EBITDA but which reduce net revenue on a per hectoliter basis.
Brazil EBITDA declined by 2.8% in 2Q16 to 710 million
USD, with a margin decrease of 217 bps to 45.1%, and declined by 4.5% in HY16 to 1 519 million USD, with EBITDA margin down 155 bps to 48.2%, due to the top-line result.
China
Key performance indicators
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 6. China (million USD)
|
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
|
2Q16
|
|
|
Organic
growth
|
|
Total volumes (thousand hls)
|
|
|
21 952
|
|
|
|
21 512
|
|
|
|
-2.3%
|
|
Revenue
|
|
|
1 167
|
|
|
|
1 161
|
|
|
|
3.9%
|
|
Normalized EBITDA
|
|
|
309
|
|
|
|
373
|
|
|
|
25.6%
|
|
Normalized EBITDA margin
|
|
|
26.5%
|
|
|
|
32.1%
|
|
|
|
553 bp
|
|
|
|
HY15
|
|
|
HY16
|
|
|
Organic
growth
|
|
Total volumes (thousand hls)
|
|
|
38 745
|
|
|
|
38 142
|
|
|
|
-1.8%
|
|
Revenue
|
|
|
2 164
|
|
|
|
2 125
|
|
|
|
2.5%
|
|
Normalized EBITDA
|
|
|
568
|
|
|
|
632
|
|
|
|
15.7%
|
|
Normalized EBITDA margin
|
|
|
26.3%
|
|
|
|
29.7%
|
|
|
|
337 bp
|
|
We estimate that
China
beer industry volumes declined by approximately 8% in the quarter and by approximately 6%
in HY16, due to continuing economic headwinds, with most of the impact being felt in the core and value segments. Our own beer volumes were down 2.3% in the quarter and 1.8% in HY16. We estimate our market share increased by approximately 110 bps in
the quarter, reaching an average of 19.1%.
We continue to believe the Core Plus, Premium and Super Premium segments have the greatest long-term
growth potential in the industry. Our Budweiser volumes recovered well after a difficult first quarter, growing by high single digits in the second quarter, led by our Made for Music platform and successful summer campaign.
Revenue per hl grew by 6.3% in the quarter, driven by a favorable brand mix, specifically through the growth of Budweiser and our super premium portfolio,
and improved regional mix.
China EBITDA grew by 25.6% in 2Q16 to 373 million USD, with EBITDA margin improving by 553 bps to 32.1%. China EBITDA grew
by 15.7% in HY16 to 632 million USD, with margin expansion of 337 bps to 29.7%.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
8
/ 23
|
|
Highlights from our other markets
Our beer volumes in
Canada
were down low single digits in 2Q16, with a stable market share, based on our estimates. We achieved consistent top-line
growth from the performances of Bud Light and our Above Premium portfolio.
Our own beer volumes in
Europe
were essentially flat in the
quarter, with net revenue up 4.6%, driven mainly by the growth of our premium brands. Own beer volumes in Western Europe were up almost 5% in 2Q16 driven mainly by our performances in
France, the UK, Spain
and
the Netherlands.
In the
UK
, volumes of our own products grew by high single digits, driven by strong performances from our Budweiser Euro Cup activations and the performance of Corona. Own beer volumes in
Belgium
were down mid-single digits, due to an
industry decline and some estimated market share loss. In
Germany
, own beer volumes grew by low single digits driven by strong performances from Becks and Franziskaner. Beer volumes in
Russia
were down mid-single digits in the
quarter, driven by a soft industry and some market share loss, partly offset by a strong performance from our premium brands.
Latin America
South
beer volumes were down high single digits, driven mainly by a weak consumer environment in Argentina.
In
South Korea,
beer volumes
were flat in the quarter, although we gained market share, based on our estimates. This performance was driven mainly by our successful Cass Freshness campaign.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
9
/ 23
|
|
|
CONSOLIDATED INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Figure 7. Consolidated income statement (million USD)
|
|
|
|
2Q15
|
|
|
2Q16
|
|
|
Organic
growth
|
|
Revenue
|
|
|
11 052
|
|
|
|
10 806
|
|
|
|
4.0%
|
|
Cost of sales
|
|
|
-4 462
|
|
|
|
-4 225
|
|
|
|
-0.8%
|
|
Gross profit
|
|
|
6 590
|
|
|
|
6 582
|
|
|
|
6.2%
|
|
Distribution expenses
|
|
|
-1 066
|
|
|
|
-1 025
|
|
|
|
-3.9%
|
|
Sales and marketing expenses
|
|
|
-1 757
|
|
|
|
-1 970
|
|
|
|
-18.8%
|
|
Administrative expenses
|
|
|
-618
|
|
|
|
-624
|
|
|
|
-4.5%
|
|
Other operating income/(expenses)
|
|
|
233
|
|
|
|
259
|
|
|
|
40.9%
|
|
Normalized profit from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
(normalized EBIT)
|
|
|
3 382
|
|
|
|
3 222
|
|
|
|
2.9%
|
|
Non-recurring items above EBIT
|
|
|
20
|
|
|
|
-106
|
|
|
|
|
|
Net finance income/(cost)
|
|
|
-554
|
|
|
|
-726
|
|
|
|
|
|
Non-recurring net finance income/(cost)
|
|
|
-60
|
|
|
|
-1 484
|
|
|
|
|
|
Share of results of associates
|
|
|
7
|
|
|
|
1
|
|
|
|
|
|
Income tax expense
|
|
|
-532
|
|
|
|
-497
|
|
|
|
|
|
Profit
|
|
|
2 263
|
|
|
|
410
|
|
|
|
|
|
Profit attributable to non-controlling interest
|
|
|
334
|
|
|
|
257
|
|
|
|
|
|
Profit attributable to equity holders of AB InBev
|
|
|
1 929
|
|
|
|
152
|
|
|
|
|
|
|
|
|
|
Normalized EBITDA
|
|
|
4 156
|
|
|
|
4 011
|
|
|
|
4.3%
|
|
Normalized profit attributable to equity
|
|
|
|
|
|
|
|
|
|
|
|
|
holders of AB InBev
|
|
|
1 984
|
|
|
|
1 727
|
|
|
|
|
|
|
|
HY15
|
|
|
HY16
|
|
|
Organic
growth
|
|
Revenue
|
|
|
21 505
|
|
|
|
20 206
|
|
|
|
3.6%
|
|
Cost of sales
|
|
|
-8 662
|
|
|
|
-8 002
|
|
|
|
-1.3%
|
|
Gross profit
|
|
|
12 843
|
|
|
|
12 204
|
|
|
|
5.1%
|
|
Distribution expenses
|
|
|
-2 125
|
|
|
|
-1 964
|
|
|
|
-4.7%
|
|
Sales and marketing expenses
|
|
|
-3 343
|
|
|
|
-3 568
|
|
|
|
-16.3%
|
|
Administrative expenses
|
|
|
-1 263
|
|
|
|
-1 179
|
|
|
|
0.1%
|
|
Other operating income/(expenses)
|
|
|
483
|
|
|
|
422
|
|
|
|
14.1%
|
|
Normalized profit from operations
|
|
|
|
|
|
|
|
|
|
|
|
|
(normalized EBIT)
|
|
|
6 595
|
|
|
|
5 915
|
|
|
|
1.2%
|
|
Non-recurring items above EBIT
|
|
|
11
|
|
|
|
-139
|
|
|
|
|
|
Net finance income/(cost)
|
|
|
-463
|
|
|
|
-1 945
|
|
|
|
|
|
Non-recurring net finance income/(cost)
|
|
|
335
|
|
|
|
-2 168
|
|
|
|
|
|
Share of results of associates
|
|
|
8
|
|
|
|
3
|
|
|
|
|
|
Income tax expense
|
|
|
-1 125
|
|
|
|
-835
|
|
|
|
|
|
Profit
|
|
|
5 361
|
|
|
|
829
|
|
|
|
|
|
Profit attributable to non-controlling interest
|
|
|
751
|
|
|
|
544
|
|
|
|
|
|
Profit attributable to equity holders of AB InBev
|
|
|
4 610
|
|
|
|
285
|
|
|
|
|
|
|
|
|
|
Normalized EBITDA
|
|
|
8 123
|
|
|
|
7 474
|
|
|
|
3.4%
|
|
Normalized profit attributable to equity
|
|
|
|
|
|
|
|
|
|
|
|
|
holders of AB InBev
|
|
|
4 278
|
|
|
|
2 571
|
|
|
|
|
|
Revenue
Consolidated
revenue grew by 4.0% in 2Q16, with revenue per hl growth of 5.9%. This result was driven by our revenue management and premiumization initiatives. On a constant geographic basis, revenue per hl grew by 6.1%. In HY16, revenue grew by 3.6%, with
revenue per hl growth of 5.4% on an organic basis and 5.7% on a constant geographic basis.
Cost of Sales (CoS)
Total CoS increased by 0.8%, and by 2.5% on a per hl basis. This increase was driven primarily by unfavorable foreign exchange transactional impacts and
product mix, which were partly offset by procurement savings, efficiencies and a greater mix of inputs from our vertical operations. On a constant geographic basis, CoS per hl increased by 1.4% in 2Q16. In HY16, CoS increased by 1.3%, by 3.0% on a
per hl basis, and by 2.7% per hl on a constant geographic basis.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
10
/ 23
|
|
Distribution expenses
Distribution expenses grew by 3.9% and by 5.7% on a per hl basis. The increase compared to 2Q15 was driven by increased own distribution
in Brazil, which is more than offset by the increase in net revenues, the growth of our premium and near beer brands, and inflationary increases in Latin America South. This increase was partly offset by strong cost management and efficiencies.
Distribution expenses increased by 4.7% in HY16 and by 6.5% on a per hl basis.
Sales and marketing investments
Sales and marketing investments increased by 18.8% in 2Q16, driven by increased support for our brands, our premiumization initiatives,
and the expansion of the near beer category. Sales and Marketing investments increased by 16.3% in HY16. We expect sales and marketing investments to grow by high single to low double digits in FY16, and by mid to high single digits in the second
half of the year.
Administrative expenses
Administrative expenses increased by 4.5% in the quarter and were essentially flat in HY16, mainly due to the timing of variable
compensation accruals.
Other operating income
Other operating income increased by 40.9% to 259 million USD in 2Q16 due to the timing of government incentives in Asia Pacific. Other
operating income increased by 14.1% to 422 million USD in HY16.
Non-recurring items above EBIT
|
|
|
|
|
|
|
|
|
Figure 8. Non-recurring items above EBIT (million USD)
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Restructuring (including impairment losses)
|
|
-37
|
|
-43
|
|
-55
|
|
-62
|
Judicial settlement
|
|
-77
|
|
-
|
|
-77
|
|
-
|
Acquisition costs / Business combinations
|
|
-4
|
|
-60
|
|
-4
|
|
-79
|
Business and asset disposal (including impairment losses)
|
|
138
|
|
-2
|
|
147
|
|
2
|
Impact on profit from operations
|
|
20
|
|
-105
|
|
11
|
|
-139
|
Normalized profit from operations excludes negative non-recurring items of 105 million USD in 2Q16, primarily due to
acquisition costs related to the proposed combination with SABMiller, as well as restructuring costs.
Net finance income/(cost)
|
|
|
|
|
|
|
|
|
Figure 9. Net finance income/(cost) (million USD)
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Net interest expense
|
|
-352
|
|
-866
|
|
-760
|
|
-1 547
|
Net interest on net defined benefit liabilities
|
|
-30
|
|
-30
|
|
-60
|
|
-59
|
Accretion expense
|
|
-73
|
|
-120
|
|
-149
|
|
-263
|
Other financial results
|
|
-99
|
|
290
|
|
506
|
|
-76
|
Net finance income/(cost)
|
|
-554
|
|
-726
|
|
-463
|
|
-1 945
|
Net finance costs
(excluding non-recurring net finance costs) were 726 million USD in 2Q16
compared to 554 million USD in 2Q15. This increase was driven primarily by the additional net interest expenses resulting from the bond issuances in 1Q16 related to the pre-funding of the proposed SABMiller combination. Other financial results
include a favorable mark-to-market adjustment of 444 million USD in 2Q16, linked to the hedging of our share-based payment programs, compared to a loss of 139 million USD in 2Q15. Accretion expenses increased by 47 million USD in 2Q16, due to
increased expenses on bonds.
Net finance costs in HY16 were 1 945 million USD compared to 463 million USD in HY15. This increase in
net finance costs was driven primarily by the additional net interest expenses resulting from the issuance of bonds in 1Q16 related to the pre-funding of the proposed SABMiller combination. Other finance results in HY16 includes a positive
mark-to-market adjustment of 306 million USD, linked to the hedging of our share-based payment programs, compared to a gain of 618 million USD in HY15. Other finance results in HY16 also include net foreign exchange translation losses, compared to
foreign exchange translation gains in HY15.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
11
/ 23
|
|
The number of shares covered by the hedging of our share-based payment programs, and the opening and
closing share prices, are shown in figure 10 below.
|
|
|
|
|
|
|
|
|
Figure 10. Share-based payment hedge
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Share price at the start of the period (Euro)
|
|
113.80
|
|
109.25
|
|
93.86
|
|
114.40
|
Share price at the end of the period (Euro)
|
|
107.50
|
|
117.60
|
|
107.50
|
|
117.60
|
Number of equity derivative instruments at the end of the period (millions)
|
|
35.5
|
|
44.2
|
|
35.5
|
|
44.2
|
Non-recurring net finance income/(cost)
|
|
|
|
|
|
|
|
|
Figure 11. Non-recurring net finance income/(cost) (million USD)
|
|
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Mark-to-market (Grupo Modelo deferred share instrument)
|
|
-60
|
|
230
|
|
335
|
|
146
|
Mark-to-market (FX hedging of the purchase price of the proposed combination
with SABMiller that does not qualify for hedge accounting)
|
|
-
|
|
-1 766
|
|
-
|
|
-2 365
|
Other mark-to-market (Restricted shares
and euro bonds)
|
|
-
|
|
168
|
|
-
|
|
293
|
Other
|
|
-
|
|
-116
|
|
-
|
|
-242
|
Non-recurring net finance income/(cost)
|
|
-60
|
|
-1 484
|
|
335
|
|
-2 168
|
Non-recurring net finance costs
were 1 484 million USD in 2Q16 compared to 60 million USD in 2Q15. Non-recurring
net finance costs in 2Q16 include a negative mark-to-market adjustment of 1 766 million USD, related to the portion of the FX hedging of the purchase price of the proposed combination with SABMiller that does not qualify for hedge accounting under
IFRS rules. At the end of 2Q16, 46 billion GBP of the purchase price of the proposed combination had been hedged at an average GBP/USD rate of 1.5276.
The 2Q16 result also includes a mark-to-market gain of 230 million USD resulting from the derivative instruments entered into to hedge the deferred share
instrument issued in a transaction related to the combination with Grupo Modelo, and a mark-to-market gain of 168 million USD related to derivative instruments entered into to hedge part of the restricted shares to be issued in relation to the
proposed combination with SABMiller. The number of shares covered by the hedging of the deferred share instrument and the restricted shares are shown in figure 12, together with the opening and closing share prices.
Other non-recurring net finance costs of 116 million USD in 2Q16 mainly relate to accelerated accretion expenses following the cancellation, in April
2016, of 12.5 billion USD of the 2015 committed senior facilities entered into in connection with the proposed combination with SABMiller, as well as commitment fees for these facilities.
|
|
|
|
|
|
|
|
|
Figure 12. Deferred share instrument hedge & Restricted shares to be issued hedge
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Share price at the start of the period (Euro)
|
|
113.80
|
|
109.25
|
|
93.86
|
|
114.40
|
Share price at the end of the period (Euro)
|
|
107.50
|
|
117.60
|
|
107.50
|
|
117.60
|
Number of equity derivative instruments at the end of the period (millions)
|
|
23.1
|
|
38.1
|
|
23.1
|
|
38.1
|
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
12
/ 23
|
|
Income tax expense
|
|
|
|
|
|
|
|
|
Figure 13. Income tax expense (million USD)
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Income tax expense
|
|
532
|
|
497
|
|
1 125
|
|
835
|
Effective tax rate
|
|
19.1%
|
|
54.9%
|
|
17.4%
|
|
50.2%
|
Normalized effective tax rate
|
|
17.2%
|
|
20.5%
|
|
17.6%
|
|
21.5%
|
Income tax expense
in 2Q16 was 497 million USD with a normalized effective tax rate (ETR) of 20.5%, compared to an
income tax expense of 532 million USD in 2Q15 and a normalized ETR of 17.2%. The normalized ETR was impacted by the pre-funding of the purchase price of the proposed combination with SABMiller, for which no tax deduction is reported.
The increase in the reported ETR from 19.1% in 2Q15 to 54.9% in 2Q16 is due to the unfavorable impact on profit before tax of the negative mark-to-market
adjustment related to the hedging of the purchase price of the proposed combination with SABMiller.
Profit attributable to non-controlling interest
Profit attributable to non-controlling interest decreased from 334 million USD in 2Q15 to 257 million USD in 2Q16, due to currency
translation effects and the unfavorable operating performance of Ambev in the second quarter.
Normalized Profit and Profit
|
|
|
|
|
|
|
|
|
Figure 14. Normalized Profit attribution to equity holders of AB InBev (million USD)
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Profit attributable to equity holders of AB InBev
|
|
1 929
|
|
152
|
|
4 610
|
|
285
|
Non-recurring items, after taxes, attributable to equity holders of AB InBev
|
|
-5
|
|
90
|
|
3
|
|
119
|
|
|
|
|
|
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB InBev
|
|
60
|
|
1 484
|
|
-335
|
|
2 167
|
Normalized profit attributable to equity holders of AB InBev
|
|
1 984
|
|
1 727
|
|
4 278
|
|
2 571
|
Normalized profit attributable to equity holders of AB InBev decreased to 1 727 million USD in 2Q16 from 1 984 million
USD in 2Q15, with organic EBITDA growth more than offset by higher net finance costs and the impact of unfavorable currency translation. Normalized profit attributable to equity holders of AB InBev was 2 571 million USD in HY16, compared to 4 278
million USD in HY15.
Profit attributable to equity holders of AB InBev decreased to 152 million USD in 2Q16, compared to 1 929 million USD in 2Q15.
Normalized and Basic EPS
|
|
|
|
|
|
|
|
|
Figure 15. Earnings per share (USD)
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Basic earnings per share
|
|
1.18
|
|
0.09
|
|
2.81
|
|
0.17
|
Non-recurring items, after taxes, attributable to equity holder of AB InBev, per share
|
|
-
|
|
0.06
|
|
-
|
|
0.07
|
|
|
|
|
|
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB InBev, per share
|
|
0.03
|
|
0.90
|
|
-0.20
|
|
1.32
|
Normalized earnings per share
|
|
1.21
|
|
1.06
|
|
2.61
|
|
1.57
|
Normalized earnings per share (EPS) decreased to 1.06 USD in 2Q16 from 1.21 USD in 2Q15, mainly driven by the net cost of
the pre-funding of the SABMiller purchase price and other financial results.
|
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PRESS RELEASE
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Brussels, 29 July 2016, 7.00am CET
13
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|
Normalized EPS, excluding the impact of unfavorable currency translation, the mark-to-market adjustment
linked to the hedging of our share based compensation programs and the net cost of the pre-funding of the SABMiller purchase price, decreased to 1.10 USD in 2Q16 from 1.29 USD in 2Q15.
|
|
|
|
|
|
|
|
|
Figure 16. Reconciliation - Normalized Earnings per share in USD
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Normalized EBIT attributable to equity holders of AB InBev
1
|
|
1.81
|
|
1.85
|
|
3.41
|
|
3.44
|
Income tax expense
1
|
|
-0.29
|
|
-0.30
|
|
-0.57
|
|
-0.51
|
Other
1
|
|
-0.23
|
|
-0.45
|
|
-0.61
|
|
-0.90
|
Normalized EPS before currency translation, mark-to-market and prefunding of the proposed combination with SABMiller
|
|
1.29
|
|
1.10
|
|
2.23
|
|
2.03
|
Year over Year currency translation
|
|
|
|
-0.04
|
|
|
|
-0.19
|
Net cost of the pre-funding of the SABMiller purchase price
|
|
|
|
-0.27
|
|
|
|
-0.46
|
Mark-to-market (Hedging of our share-based payment programs)
|
|
-0.08
|
|
0.27
|
|
0.38
|
|
0.19
|
Normalized EPS
|
|
1.21
|
|
1.06
|
|
2.61
|
|
1.57
|
|
|
|
|
|
1
at 2015 foreign exchange rate
|
|
|
|
|
|
|
|
|
Figure 17. Reconciliation - Basic Earnings per share in USD
|
|
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
EBIT attributable to equity holders of AB InBev
1
|
|
1.84
|
|
1.86
|
|
3.43
|
|
3.42
|
Income tax expense
1
|
|
-0.29
|
|
-0.26
|
|
-0.57
|
|
-0.47
|
Other
1
|
|
-0.25
|
|
-0.52
|
|
-0.63
|
|
-0.95
|
|
|
|
|
|
Basic EPS before currency translation, mark-to-market and prefunding of the proposed combination with SABMiller
|
|
1.30
|
|
1.08
|
|
2.23
|
|
2.00
|
Year over Year currency translation
|
|
|
|
-0.05
|
|
|
|
-0.19
|
Net cost of the pre-funding of the SABMiller purchase price
|
|
|
|
-0.27
|
|
|
|
-0.46
|
Mark-to-market (Hedging of our share-based payment programs)
|
|
-0.08
|
|
0.27
|
|
0.38
|
|
0.19
|
Mark-to-market (Grupo Modelo deferred share instrument)
|
|
-0.04
|
|
0.14
|
|
0.20
|
|
0.09
|
Mark-to-market (FX hedging of the purchase price of the proposed combination with SABMiller that does not qualify for hedge accounting)
|
|
|
|
-1.08
|
|
|
|
-1.44
|
Other mark-to-market (derivative instruments entered into to hedge part of the Restricted shares to be issued as well as to convert the 13.25 billion euro bond issuance on 29 March 2016, into US dollars)
|
|
|
|
0.10
|
|
|
|
0.18
|
Accelerated accretion expenses following the cancellation of the 2015 committed senior acquisition facilities and other fees
|
|
|
|
-0.07
|
|
|
|
-0.15
|
Acquisition costs / Business combinations
|
|
|
|
-0.04
|
|
|
|
-0.05
|
Basic EPS
|
|
1.18
|
|
0.09
|
|
2.81
|
|
0.17
|
|
|
|
|
|
1
at 2015 foreign exchange rate
|
|
|
|
|
|
|
|
|
|
Reconciliation between profit attributable to equity holders and normalized EBITDA
|
Figure 18. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD)
|
|
|
2Q15
|
|
2Q16
|
|
HY15
|
|
HY16
|
Profit attributable to equity holders of AB InBev
|
|
1 929
|
|
152
|
|
4 610
|
|
285
|
Non-controlling interests
|
|
334
|
|
257
|
|
751
|
|
544
|
Profit
|
|
2 263
|
|
410
|
|
5 361
|
|
829
|
Income tax expense
|
|
532
|
|
497
|
|
1 125
|
|
835
|
Share of result of associates
|
|
-7
|
|
-1
|
|
-8
|
|
-3
|
Net finance (income)/cost
|
|
554
|
|
726
|
|
463
|
|
1 945
|
Non-recurring net finance (income)/cost
|
|
60
|
|
1 484
|
|
-335
|
|
2 168
|
Non-recurring items above EBIT (incl. non-recurring impairment)
|
|
-20
|
|
106
|
|
-11
|
|
139
|
Normalized EBIT
|
|
3 382
|
|
3 222
|
|
6 595
|
|
5 915
|
Depreciation, amortization and impairment
|
|
774
|
|
789
|
|
1 528
|
|
1 559
|
Normalized EBITDA
|
|
4 156
|
|
4 011
|
|
8 123
|
|
7 474
|
Normalized EBITDA and normalized EBIT are measures utilized by AB InBev to demonstrate the companys underlying
performance.
Normalized EBITDA is calculated excluding the following effects from profit attributable to equity holders of AB InBev: (i)
non-controlling interest; (ii) income tax expense; (iii) share of results of associates; (iv) net finance cost; (v) non-recurring net finance cost; (vi) non-recurring items above EBIT (including non-recurring impairment); and (vii) depreciation,
amortization and impairment.
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PRESS RELEASE
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Brussels, 29 July 2016, 7.00am CET
14
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|
|
Normalized EBITDA and normalized EBIT are not accounting measures under IFRS accounting and should not
be considered as an alternative to profit attributable to equity holders as a measure of operational performance, or an alternative to cash flow as a measure of liquidity. Normalized EBITDA and normalized EBIT do not have a standard calculation
method and AB InBevs definition of normalized EBITDA and normalized EBIT may not be comparable to that of other companies.
|
|
|
|
|
Figure 19. Cash Flow Statement (million USD)
|
|
|
|
|
|
|
HY15
|
|
HY16
|
|
|
|
Operating activities
|
|
|
|
|
Profit
|
|
5 361
|
|
829
|
Interest, taxes and non-cash items included in profit
|
|
2 829
|
|
6 564
|
Cash flow from operating activities before changes in working capital
|
|
8 190
|
|
7 393
|
and use of provisions
|
|
|
|
|
|
|
|
Change in working capital
|
|
-965
|
|
-1 673
|
Pension contributions and use of provisions
|
|
-194
|
|
-265
|
Interest and taxes (paid)/received
|
|
-2 336
|
|
-3 008
|
Dividends received
|
|
19
|
|
6
|
Cash flow from operating activities
|
|
4 714
|
|
2 453
|
|
|
|
Investing activities
|
|
|
|
|
Net capex
|
|
-1 609
|
|
-1 419
|
Acquisition and sale of subsidiaries, net of cash acquired/disposed of
|
|
-220
|
|
-1 035
|
Proceeds from the sale of/(investments in) short-term debt securities
|
|
-71
|
|
-55 905
|
Proceeds from the sale of assets held for sale
|
|
228
|
|
58
|
Other
|
|
-91
|
|
2
|
Cash flow from investing activities
|
|
-1 763
|
|
-58 299
|
|
|
|
Financing activities
|
|
|
|
|
Dividends paid
|
|
-4 556
|
|
-3 929
|
Net (payments on)/proceeds from borrowings
|
|
1 507
|
|
58 801
|
Net proceeds from the issue of share capital
|
|
3
|
|
-
|
Share buyback
|
|
-1 000
|
|
-
|
Other (including net finance cost other than interest)
|
|
-377
|
|
75
|
Cash flow from financing activities
|
|
-4 423
|
|
54 947
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
-1 472
|
|
- 899
|
HY16 recorded a decrease in cash and cash equivalents of 899 million USD compared to a decrease of 1 472 million USD in
HY15, with the following movements:
|
●
|
Cash flow from operating activities reached 2 453 million USD in HY16 compared to 4 714 million USD in HY15, with the
decrease mainly explained by unfavorable foreign exchange translational impacts, higher taxes paid and a difficult comparable on working capital due to lower trade payables as a result of reduced production volumes in Brazil.
|
|
●
|
Cash Flow from investing activities was 58 299 million USD in HY16 as compared to 1 763 million USD in HY15. In order to
support the proposed combination with SABMiller, AB InBev issued a series of bonds in 1Q16. The excess liquidity resulting from these issuances was invested primarily in US Treasury Bills pending the closing of the combination.
|
AB InBevs net capital expenditures amounted to 1 419 million USD in HY16 compared to 1 609 million USD in
HY15. Approximately 49% of the gross capital expenditures in HY16 was used to improve the companys production facilities, approximately 36% was used for logistics and commercial investments, and approximately 15% was used to improve
administrative capabilities and the purchase of hardware and software.
|
|
|
PRESS RELEASE
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|
|
Brussels, 29 July 2016, 7.00am CET
15
/ 23
|
|
|
●
|
The cash inflow from financing activities amounted to 54 947 million USD in HY16, as compared to a cash outflow of 4 423
million USD in HY15, driven mainly by the cash inflow from issuance of bonds in 1Q16 related to the pre-funding of the proposed combination with SABMiller.
|
AB InBevs net debt as of 30 June 2016 was 44.9 billion USD, an increase from 42.2 billion USD as of 31 December 2015. The net debt to
normalized EBITDA ratio increased from 2.51x as of 31 December 2015 to 2.77x as of 30 June 2016, both on a reported basis.
As of
30 June 2016, the company had total liquidity of 70 977 million USD, which consisted of 9 000 million USD available under committed long-term credit facilities and 61 977 million USD of cash, cash equivalents and short-term investments in debt
securities less bank overdrafts. Although AB InBev may borrow such amounts to meet its liquidity needs, the company principally relies on cash flows from operating activities to fund its continuing operations.
|
Figure 20. Terms and debt repayment schedule as of 30 June 2016 (billion USD)
|
Approval of proposed combination with SABMiller by the United States Department of Justice
On 20 July 2016, AB InBev announced that it had entered into a consent decree with the United States Department of Justice, which clears the way for
U.S. approval of its proposed combination with SABMiller plc.
As part of the consent decree and consistent with AB InBevs approach to
proactively address potential regulatory concerns, the company agreed to divest SABMillers U.S. interest in MillerCoors to Molson Coors. This divestiture, which was previously announced between AB InBev and Molson Coors, is conditional upon
the successful closing of the combination of AB InBev with SABMiller.
The terms of the consent decree formalize prior commitments made by the
companys U.S. entity Anheuser-Busch (AB) including:
|
●
|
AB will not acquire a distributor if doing so would result in more than 10% of its annual volume being distributed
through wholly-owned distributorships in the U.S.
|
|
●
|
AB will not terminate any wholesalers as a result of the combination with SABMiller.
|
In addition, certain aspects of the companys U.S. sales programs and policies will be reviewed and modified to conform to the consent decree.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
16
/ 23
|
|
Revised and Final offer for SABMiller PLC
On 26 July we announced revised and final terms of our offer to acquire the entire issued and to be issued share capital of SABMiller.
Pursuant to the revised and final terms, each SABMiller shareholder will now be entitled to receive £45.00 in cash for each SABMiller share. The
revised Cash Consideration represents:
|
●
|
An increase of £1.00 per SABMiller Share over the £44.00 Cash Consideration set out in the 11 November
2015 announcement
|
|
●
|
A premium of approximately 53% to SABMillers closing share price of £29.34 on 14 September 2015 (being
the last Business Day prior to renewed speculation of an approach from AB InBev)
|
|
●
|
A premium of approximately 39% to SABMillers three month volume weighted average share price of £32.31 to
14 September 2015
|
Pursuant to the revised and final terms of the Partial Share Alternative, SABMiller shareholders will now
be entitled to elect to receive £4.6588 in cash and 0.483969 Restricted Shares for each SABMiller share.
The revised Partial Share Alternative represents, as
of 25 July 2016:
|
●
|
A premium of approximately 74% to SABMillers closing share price of £29.34 on 14 September 2015 (being
the last Business Day prior to renewed speculation of an approach from AB InBev)
|
|
●
|
A premium of approximately 58% to SABMillers three-month volume weighted average share price of £32.31 to
14 September 2015
|
We believe that the revised and final offer represents a compelling opportunity for all SABMiller
shareholders and hope to receive the recommendation of the SABMiller board for the cash consideration at the appropriate time. SABMillers two largest shareholders have undertaken to vote in favor of the transaction, as have the SABMiller
directors with respect to their personal shareholdings.
Over the last 9 months, we have worked very closely and collaboratively with the SABMiller
team. We have made very good progress with them on the regulatory process around the world, and have also worked with them on bond financing and the disposals in the US, China and Europe, as well as general integration planning. It remains our
objective to close the transaction in 2016.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
17
/ 23
|
|
|
AB InBevs 2Q16 and 2Q15 and HY16 and HY15 reported numbers are based on unaudited interim consolidated financial statements prepared in accordance
with IFRS. Unless otherwise indicated, amounts are presented in million USD.
To facilitate the understanding of AB InBevs underlying performance, the analyses of growth, including all comments in this press release, unless
otherwise indicated, are based on organic growth and normalized numbers. In other words, financials are analyzed eliminating the impact of changes in currencies on translation of foreign operations, and scope changes. Scope changes represent the
impact of acquisitions and divestitures, the start or termination of activities or the transfer of activities between segments, curtailment gains and losses and year over year changes in accounting estimates and other assumptions that management
does not consider as part of the underlying performance of the business.
All references per hectoliter (per hl) exclude US non-beer activities. To eliminate the effect of geography mix, i.e. the impact of stronger volume growth
coming from countries with lower revenue per hl, and lower Cost of Sales per hl, we are also presenting, where specified, organic growth per hectoliter figures on a constant geographic basis. When we make estimations on a constant geographic basis,
we assume each country in which we operate accounts for the same percentage of our global volume as in the same period of the previous year.
Whenever presented in this document, all performance measures (EBITDA, EBIT, profit, tax rate, EPS) are presented on a normalized basis, which
means they are presented before non-recurring items. Non-recurring items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the
understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management, and should not replace the measures determined in accordance with IFRS as an
indicator of the Companys performance. Values in the figures and annexes may not add up, due to rounding.
2Q16 and HY16 EPS is based upon a weighted average of 1 641 million shares compared to 1 640 million shares for 2Q15 and HY15.
|
|
Legal Disclaimer
This release contains
forward-looking statements. These statements are based on the current expectations and views of future events and developments of the management of Anheuser-Busch InBev and are naturally subject to uncertainty and changes in
circumstances. The forward-looking statements contained in this release include, among other things, statements relating to Anheuser-Busch InBevs proposed business combination with SABMiller and other statements other than historical facts.
Forward-looking statements include statements typically containing words such as will, may, should, believe, intends, expects, anticipates, targets,
estimates, likely, foresees and words of similar import. All statements other than statements of historical facts are forward-looking statements. You should not place undue reliance on these forward-looking
statements, which reflect the current views of the management of Anheuser-Busch InBev, are subject to numerous risks and uncertainties about Anheuser-Busch InBev and SABMiller and are dependent on many factors, some of which are outside of
Anheuser-Busch InBevs control. There are important factors, risks and uncertainties that could cause actual outcomes and results to be materially different, including the satisfaction of the pre-conditions and the conditions to the
transactions described herein, the ability to obtain the regulatory approvals related to the transactions and the ability to satisfy any conditions required to obtain such approvals, and the risks and uncertainties relating to Anheuser-Busch InBev
described under Item 3.D of Anheuser-Busch InBevs Annual Report on Form 20-F (Form 20-F) filed with the US Securities and Exchange Commission (SEC) on 14 March 2016. Other unknown or unpredictable factors could
cause actual results to differ materially from those in the forward-looking statements. There can be no certainty that the proposed transactions will be completed on the terms described herein or at all.
The forward-looking statements should be read in conjunction with the
other cautionary statements that are included elsewhere, including Anheuser-Busch InBevs most recent Form 20-F and other reports furnished on Form 6-K, and any other documents that Anheuser-Busch InBev or SABMiller have made public. Any
forward-looking statements made in this communication are qualified in their entirety by these cautionary statements and there can be no assurance that the actual results or developments anticipated by Anheuser-Busch InBev will be realized or, even
if substantially realized, that they will have the expected consequences to, or effects on, Anheuser-Busch InBev or its business or operations. Except as required by law, Anheuser-Busch InBev undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future events or otherwise.
Future SEC Filings and This Filing: Important Information
In the
event that AB InBev and SABMiller implement a transaction relating to the proposed business combination between AB InBev and SABMiller, AB InBev or Newbelco SA/NV (a Belgian limited liability company formed for the purposes of such transaction) may
be required to file relevant materials with the SEC. Such documents, however, are not currently available. INVESTORS ARE URGED TO READ ANY DOCUMENTS REGARDING SUCH POTENTIAL
|
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
18
/ 23
|
|
|
TRANSACTION IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors will be able to obtain a free copy of such
filings without charge, at the SECs website (http://www.sec.gov) once such documents are filed with the SEC. Copies of such documents may also be obtained from AB InBev, without charge, once they are filed with the SEC.
Notice to US investors
US holders of SABMiller
shares should note that the steps of any transaction requiring approval by SABMiller shareholders may be implemented under a UK scheme of arrangement provided for under English company law. If so, it is expected that any shares to be issued
under the transaction to SABMiller shareholders would be issued in reliance upon the exemption from the registration requirements of the US Securities Act of 1933, provided by Section 3(a)(10) thereof and would be subject to UK disclosure
requirements (which are different from those of the United States). The transaction may instead be implemented by way of a takeover offer under English law. If so, any securities to be issued under the transaction to SABMiller shareholders will
be registered under the US Securities Act, absent an applicable exemption from registration. If the transaction is implemented by way of UK takeover offer, it will be done in compliance with the applicable rules under the US Exchange Act of 1934,
including any applicable exemptions provided under Rule 14d-1(d) thereunder.
This filing shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.
|
|
The second quarter 2016 (2Q16) and half year (HY16) financial
data set out in Figure 1 (except for the volume information), Figures 7 to 9, 11, 13 to 15 and 18 to 19 of this press release have been extracted from the groups unaudited condensed consolidated interim financial statements as of and for the
six months ended 30 June 2016, which have been reviewed by our statutory auditors Deloitte Bedrijfsrevisoren BCVBA in accordance with International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by
the Independent Auditor of the Entity and the standards of the Public Company Accounting Oversight Board (United States). The auditors concluded that, based on their review, nothing had come to their attention that caused them to believe that
those interim financial statements were not presented fairly, in all material respects, in accordance with IAS 34 Interim Financial Reporting, as issued by the IASB and as adopted by the European Union. Financial data included in Figures
3 to 6, 10, 12, 16 to 17 and 20 have been extracted from the underlying accounting records as of and for the six months ended 30 June 2016 (except for the volume information).
|
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
19
/ 23
|
|
|
CONFERENCE CALL AND WEBCAST
|
Investor Conference call and Webcast on Friday, July 29, 2016:
3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode)
http://event.on24.com/r.htm?e=1117086&s=1&k=C2DC39A8AFD9465F463B7947C374431C
Conference call (with interactive Q&A)
http://www.directeventreg.com/registration/event/21564411
|
ANHEUSER-BUSCH INBEV CONTACTS
|
|
|
|
Media
|
|
Investors
|
Marianne Amssoms
Tel: +1-212-573-9281
E-mail:
marianne.amssoms@ab-inbev.com
|
|
Graham Staley
Tel: +1-212-573-4365
E-mail:
graham.staley@ab-inbev.com
|
Karen Couck
Tel: +1-212-573-9283
E-mail:
karen.couck@ab-inbev.com
Kathleen Van Boxelaer
Tel: +32-16-27-68-23
E-mail:
kathleen.vanboxelaer@ab-inbev.com
|
|
Lauren Abbott
Tel: +1-212-573-9287
E-mail:
lauren.abbott@ab-inbev.com
Heiko Vulsieck
Tel: +32-16-27-68-88
E-mail:
heiko.vulsieck@ab-inbev.com
|
About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with a
secondary listing on the Mexico (MEXBOL: ABI) and South Africa (JSE: ANB) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). It is the leading global brewer and one of the worlds top five consumer
products companies. Beer, the original social network, has been bringing people together for thousands of years and the companys portfolio of well over 200 beer brands continues to forge strong connections with consumers. This includes global
brands Budweiser®, Corona® and Stella Artois®; international brands Becks®, Leffe® and Hoegaarden®; and local champions Bud Light®, Skol®, Brahma®, Antarctica®, Quilmes®, Victoria®, Modelo
Especial®, Michelob Ultra®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, Cass® and Jupiler®. Anheuser-Busch InBevs dedication to quality goes back to a brewing tradition of more than 600
years and the Den Hoorn brewery in Leuven, Belgium, as well as the pioneering spirit of the Anheuser & Co brewery, with origins in St. Louis, USA since 1852. Geographically diversified with a balanced exposure to developed and developing
markets, Anheuser Busch InBev leverages the collective strengths of more than 150 000 employees based in 26 countries worldwide. In 2015, AB InBev realized 43.6 billion US dollar revenue. The company strives to be the Best Beer Company Bringing
People Together For a Better World. For more information, please visit: www.ab-inbev.com.
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
20
/ 23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 1
|
|
|
|
|
|
|
|
|
|
|
|
|
AB InBev Worldwide
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
116 799
|
|
95
|
|
-
|
|
-1 987
|
|
114 908
|
|
-1.7%
|
of which AB InBev own beer
|
|
105 409
|
|
406
|
|
-
|
|
-817
|
|
104 999
|
|
-0.8%
|
Revenue
|
|
11 052
|
|
28
|
|
-716
|
|
443
|
|
10 806
|
|
4.0%
|
Cost of sales
|
|
-4 462
|
|
1
|
|
270
|
|
-34
|
|
-4 225
|
|
-0.8%
|
Gross profit
|
|
6 590
|
|
28
|
|
-446
|
|
409
|
|
6 582
|
|
6.2%
|
Distribution expenses
|
|
-1 066
|
|
-15
|
|
98
|
|
-42
|
|
-1 025
|
|
-3.9%
|
Sales and marketing expenses
|
|
-1 757
|
|
-3
|
|
115
|
|
-327
|
|
-1 970
|
|
-18.8%
|
Administrative expenses
|
|
- 618
|
|
-17
|
|
40
|
|
-28
|
|
- 624
|
|
-4.5%
|
Other operating income/(expenses)
|
|
233
|
|
-30
|
|
-25
|
|
83
|
|
259
|
|
40.9%
|
Normalized EBIT
|
|
3 382
|
|
-38
|
|
-217
|
|
95
|
|
3 222
|
|
2.9%
|
Normalized EBITDA
|
|
4 156
|
|
-35
|
|
-283
|
|
173
|
|
4 011
|
|
4.3%
|
Normalized EBITDA margin
|
|
37.6%
|
|
|
|
|
|
|
|
37.1%
|
|
8 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
31 090
|
|
324
|
|
-
|
|
112
|
|
31 526
|
|
0.4%
|
Revenue
|
|
4 118
|
|
70
|
|
-18
|
|
92
|
|
4 263
|
|
2.2%
|
Cost of sales
|
|
-1 598
|
|
-35
|
|
4
|
|
83
|
|
-1 544
|
|
5.2%
|
Gross profit
|
|
2 520
|
|
37
|
|
-14
|
|
175
|
|
2 717
|
|
7.0%
|
Distribution expenses
|
|
- 340
|
|
-12
|
|
3
|
|
15
|
|
- 335
|
|
4.3%
|
Sales and marketing expenses
|
|
- 585
|
|
-10
|
|
2
|
|
-140
|
|
- 734
|
|
-24.1%
|
Administrative expenses
|
|
- 128
|
|
-12
|
|
1
|
|
-
|
|
- 139
|
|
0.4%
|
Other operating income/(expenses)
|
|
4
|
|
1
|
|
-
|
|
16
|
|
20
|
|
-
|
Normalized EBIT
|
|
1 471
|
|
2
|
|
-10
|
|
66
|
|
1 529
|
|
4.5%
|
Normalized EBITDA
|
|
1 657
|
|
5
|
|
-10
|
|
81
|
|
1 732
|
|
4.8%
|
Normalized EBITDA margin
|
|
40.2%
|
|
|
|
|
|
|
|
40.6%
|
|
103 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
10 886
|
|
-
|
|
-
|
|
788
|
|
11 674
|
|
7.2%
|
Revenue
|
|
1 055
|
|
-7
|
|
-157
|
|
100
|
|
992
|
|
9.5%
|
Cost of sales
|
|
- 264
|
|
-3
|
|
41
|
|
-33
|
|
- 261
|
|
-12.7%
|
Gross profit
|
|
791
|
|
-10
|
|
-116
|
|
67
|
|
732
|
|
8.5%
|
Distribution expenses
|
|
- 100
|
|
-1
|
|
16
|
|
-17
|
|
- 102
|
|
-16.7%
|
Sales and marketing expenses
|
|
- 171
|
|
10
|
|
26
|
|
-35
|
|
- 169
|
|
-21.5%
|
Administrative expenses
|
|
-93
|
|
-
|
|
12
|
|
-3
|
|
- 82
|
|
-2.2%
|
Other operating income/(expenses)
|
|
57
|
|
-25
|
|
-7
|
|
15
|
|
41
|
|
47.4%
|
Normalized EBIT
|
|
484
|
|
-24
|
|
-68
|
|
29
|
|
420
|
|
6.1%
|
Normalized EBITDA
|
|
569
|
|
-24
|
|
-80
|
|
36
|
|
500
|
|
6.6%
|
Normalized EBITDA margin
|
|
53.9%
|
|
|
|
|
|
|
|
50.4%
|
|
-143 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America - North
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
27 477
|
|
436
|
|
-
|
|
-1 280
|
|
26 632
|
|
-4.6%
|
Revenue
|
|
1 995
|
|
60
|
|
-224
|
|
35
|
|
1 864
|
|
1.7%
|
Cost of sales
|
|
- 754
|
|
-31
|
|
92
|
|
-17
|
|
- 711
|
|
-2.3%
|
Gross profit
|
|
1 241
|
|
29
|
|
-132
|
|
18
|
|
1 154
|
|
1.4%
|
Distribution expenses
|
|
- 266
|
|
-4
|
|
35
|
|
-26
|
|
- 260
|
|
-9.7%
|
Sales and marketing expenses
|
|
- 251
|
|
-5
|
|
32
|
|
-18
|
|
- 242
|
|
-7.4%
|
Administrative expenses
|
|
- 112
|
|
-6
|
|
14
|
|
-1
|
|
- 105
|
|
-1.2%
|
Other operating income/(expenses)
|
|
106
|
|
1
|
|
-12
|
|
-5
|
|
91
|
|
-4.4%
|
Normalized EBIT
|
|
718
|
|
15
|
|
-64
|
|
-33
|
|
636
|
|
-4.6%
|
Normalized EBITDA
|
|
903
|
|
15
|
|
-89
|
|
-10
|
|
819
|
|
-1.1%
|
Normalized EBITDA margin
|
|
45.3%
|
|
|
|
|
|
|
|
43.9%
|
|
-125 bp
|
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
21
/ 23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 1
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America - South
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
7 765
|
|
-485
|
|
-
|
|
-1 077
|
|
6 202
|
|
-14.8%
|
Revenue
|
|
696
|
|
-16
|
|
-180
|
|
27
|
|
527
|
|
4.1%
|
Cost of sales
|
|
- 288
|
|
12
|
|
66
|
|
10
|
|
-200
|
|
3.4%
|
Gross profit
|
|
408
|
|
-4
|
|
-114
|
|
37
|
|
327
|
|
9.2%
|
Distribution expenses
|
|
- 70
|
|
3
|
|
24
|
|
-13
|
|
-56
|
|
-19.7%
|
Sales and marketing expenses
|
|
- 93
|
|
1
|
|
29
|
|
-19
|
|
-81
|
|
-20.4%
|
Administrative expenses
|
|
- 34
|
|
1
|
|
10
|
|
-3
|
|
-25
|
|
-7.5%
|
Other operating income/(expenses)
|
|
5
|
|
-8
|
|
-1
|
|
5
|
|
-
|
|
-
|
Normalized EBIT
|
|
216
|
|
-7
|
|
-51
|
|
8
|
|
165
|
|
3.7%
|
Normalized EBITDA
|
|
264
|
|
-7
|
|
-71
|
|
28
|
|
216
|
|
11.1%
|
Normalized EBITDA margin
|
|
37.9%
|
|
|
|
|
|
|
|
41.0%
|
|
255 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
12 361
|
|
-110
|
|
-
|
|
-98
|
|
12 152
|
|
-0.8%
|
of which AB InBev own beer
|
|
11 931
|
|
-110
|
|
-
|
|
-17
|
|
11 805
|
|
-0.1%
|
Revenue
|
|
1 147
|
|
-9
|
|
-33
|
|
52
|
|
1 156
|
|
4.6%
|
Cost of sales
|
|
- 455
|
|
-
|
|
19
|
|
-21
|
|
- 457
|
|
-4.8%
|
Gross profit
|
|
692
|
|
-9
|
|
-14
|
|
31
|
|
699
|
|
4.5%
|
Distribution expenses
|
|
- 117
|
|
-2
|
|
4
|
|
-2
|
|
- 116
|
|
-1.6%
|
Sales and marketing expenses
|
|
- 245
|
|
1
|
|
7
|
|
-42
|
|
- 279
|
|
-17.3%
|
Administrative expenses
|
|
- 74
|
|
-
|
|
-
|
|
7
|
|
- 68
|
|
8.6%
|
Other operating income/(expenses)
|
|
4
|
|
2
|
|
-1
|
|
3
|
|
7
|
|
46%
|
Normalized EBIT
|
|
260
|
|
-8
|
|
-5
|
|
-5
|
|
243
|
|
-1.8%
|
Normalized EBITDA
|
|
345
|
|
-8
|
|
-7
|
|
-
|
|
331
|
|
0.1%
|
Normalized EBITDA margin
|
|
30.1%
|
|
|
|
|
|
|
|
28.6%
|
|
-128 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
25 529
|
|
179
|
|
-
|
|
-441
|
|
25 266
|
|
-1.7%
|
Revenue
|
|
1 528
|
|
14
|
|
-79
|
|
63
|
|
1 526
|
|
4.1%
|
Cost of sales
|
|
-741
|
|
-8
|
|
36
|
|
14
|
|
- 698
|
|
1.9%
|
Gross profit
|
|
787
|
|
6
|
|
-42
|
|
77
|
|
828
|
|
9.7%
|
Distribution expenses
|
|
-124
|
|
-2
|
|
6
|
|
1
|
|
-118
|
|
1.0%
|
Sales and marketing expenses
|
|
-365
|
|
1
|
|
19
|
|
-30
|
|
-373
|
|
-8.3%
|
Administrative expenses
|
|
-78
|
|
-1
|
|
4
|
|
-
|
|
-74
|
|
-
|
Other operating income/(expenses)
|
|
54
|
|
-
|
|
-4
|
|
39
|
|
87
|
|
74.5%
|
Normalized EBIT
|
|
274
|
|
5
|
|
-18
|
|
87
|
|
349
|
|
31.3%
|
Normalized EBITDA
|
|
422
|
|
5
|
|
-25
|
|
85
|
|
487
|
|
20.0%
|
Normalized EBITDA margin
|
|
27.6%
|
|
|
|
|
|
|
|
31.9%
|
|
423 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Export and Holding
Companies
|
|
2Q15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
2Q16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
1 693
|
|
-248
|
|
-
|
|
10
|
|
1 454
|
|
0.7%
|
Revenue
|
|
514
|
|
-85
|
|
-26
|
|
75
|
|
478
|
|
17.4%
|
Cost of sales
|
|
-363
|
|
64
|
|
15
|
|
-70
|
|
-353
|
|
-22.8%
|
Gross profit
|
|
151
|
|
-21
|
|
-12
|
|
5
|
|
125
|
|
4.0%
|
Distribution expenses
|
|
-48
|
|
3
|
|
10
|
|
1
|
|
-35
|
|
0.9%
|
Sales and marketing expenses
|
|
-47
|
|
-3
|
|
2
|
|
-43
|
|
-91
|
|
-86.4%
|
Administrative expenses
|
|
-100
|
|
-1
|
|
-1
|
|
-29
|
|
-130
|
|
-29.5%
|
Other operating income/(expenses)
|
|
3
|
|
-
|
|
-
|
|
9
|
|
12
|
|
-
|
Normalized EBIT
|
|
-41
|
|
-22
|
|
-1
|
|
-57
|
|
-120
|
|
-83.8%
|
Normalized EBITDA
|
|
-5
|
|
-21
|
|
-
|
|
-46
|
|
-72
|
|
-
|
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
22
/ 23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 2
|
|
|
|
|
|
|
|
|
|
|
|
|
AB InBev Worldwide
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
224 162
|
|
- 575
|
|
-
|
|
-3 811
|
|
219 776
|
|
-1.7%
|
of which AB InBev own beer
|
|
200 498
|
|
487
|
|
-
|
|
-2 106
|
|
198 880
|
|
-1.1%
|
Revenue
|
|
21 505
|
|
-33
|
|
-2 026
|
|
760
|
|
20 206
|
|
3.6%
|
Cost of sales
|
|
-8 662
|
|
61
|
|
706
|
|
- 109
|
|
-8 002
|
|
-1.3%
|
Gross profit
|
|
12 843
|
|
28
|
|
-1 320
|
|
652
|
|
12 204
|
|
5.1%
|
Distribution expenses
|
|
-2 125
|
|
-13
|
|
272
|
|
-99
|
|
-1 964
|
|
-4.7%
|
Sales and marketing expenses
|
|
-3 343
|
|
5
|
|
309
|
|
-539
|
|
-3 568
|
|
-16.3%
|
Administrative expenses
|
|
-1 263
|
|
- 28
|
|
111
|
|
1
|
|
-1 179
|
|
0.1%
|
Other operating income/(expenses)
|
|
483
|
|
-51
|
|
- 70
|
|
61
|
|
422
|
|
14.1%
|
Normalized EBIT
|
|
6 595
|
|
-60
|
|
- 697
|
|
76
|
|
5 915
|
|
1.2%
|
Normalized EBITDA
|
|
8 123
|
|
-55
|
|
- 868
|
|
274
|
|
7 474
|
|
3.4%
|
Normalized EBITDA margin
|
|
37.8%
|
|
|
|
|
|
|
|
37.0%
|
|
-6 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
58 416
|
|
205
|
|
-
|
|
-182
|
|
58 439
|
|
-0.3%
|
Revenue
|
|
7 719
|
|
32
|
|
-58
|
|
101
|
|
7 795
|
|
1.3%
|
Cost of sales
|
|
-3 073
|
|
8
|
|
14
|
|
148
|
|
-2 902
|
|
4.9%
|
Gross profit
|
|
4 646
|
|
41
|
|
-44
|
|
249
|
|
4 892
|
|
5.4%
|
Distribution expenses
|
|
- 656
|
|
-10
|
|
11
|
|
19
|
|
- 636
|
|
2.9%
|
Sales and marketing expenses
|
|
-1 085
|
|
-11
|
|
10
|
|
-215
|
|
-1 302
|
|
-20.0%
|
Administrative expenses
|
|
- 254
|
|
-22
|
|
3
|
|
11
|
|
-262
|
|
4.2%
|
Other operating income/(expenses)
|
|
20
|
|
-9
|
|
-
|
|
21
|
|
31
|
|
-
|
Normalized EBIT
|
|
2 671
|
|
-12
|
|
-21
|
|
85
|
|
2 723
|
|
3.2%
|
Normalized EBITDA
|
|
3 038
|
|
-8
|
|
-23
|
|
109
|
|
3 116
|
|
3.6%
|
Normalized EBITDA margin
|
|
39.4%
|
|
|
|
|
|
|
|
40.0%
|
|
89 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
19 991
|
|
-
|
|
-
|
|
1 971
|
|
21 961
|
|
9.9%
|
Revenue
|
|
1 948
|
|
-13
|
|
-333
|
|
244
|
|
1 847
|
|
12.6%
|
Cost of sales
|
|
- 508
|
|
-4
|
|
91
|
|
-82
|
|
- 504
|
|
-16.4%
|
Gross profit
|
|
1 440
|
|
-17
|
|
-242
|
|
162
|
|
1 343
|
|
11.3%
|
Distribution expenses
|
|
- 197
|
|
-2
|
|
36
|
|
-35
|
|
- 198
|
|
-17.7%
|
Sales and marketing expenses
|
|
- 342
|
|
20
|
|
62
|
|
-86
|
|
- 345
|
|
-26.7%
|
Administrative expenses
|
|
- 196
|
|
-
|
|
28
|
|
9
|
|
- 158
|
|
4.8%
|
Other operating income/(expenses)
|
|
109
|
|
-39
|
|
-13
|
|
13
|
|
70
|
|
19.0%
|
Normalized EBIT
|
|
814
|
|
-36
|
|
-128
|
|
64
|
|
712
|
|
8.1%
|
Normalized EBITDA
|
|
986
|
|
-36
|
|
-157
|
|
79
|
|
871
|
|
8.2%
|
Normalized EBITDA margin
|
|
50.6%
|
|
|
|
|
|
|
|
47.2%
|
|
-197 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America - North
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
58 759
|
|
587
|
|
-
|
|
-3 574
|
|
55 772
|
|
-6.0%
|
Revenue
|
|
4 484
|
|
73
|
|
- 834
|
|
-13
|
|
3 709
|
|
-0.3%
|
Cost of sales
|
|
-1 573
|
|
-38
|
|
289
|
|
-18
|
|
-1 340
|
|
-1.1%
|
Gross profit
|
|
2 911
|
|
35
|
|
- 545
|
|
-31
|
|
2 370
|
|
-1.1%
|
Distribution expenses
|
|
- 587
|
|
-5
|
|
119
|
|
-32
|
|
- 504
|
|
-5.4%
|
Sales and marketing expenses
|
|
- 547
|
|
-5
|
|
109
|
|
-30
|
|
- 473
|
|
-5.5%
|
Administrative expenses
|
|
- 241
|
|
-6
|
|
43
|
|
14
|
|
- 190
|
|
5.7%
|
Other operating income/(expenses)
|
|
274
|
|
1
|
|
-49
|
|
-37
|
|
189
|
|
-13.5%
|
Normalized EBIT
|
|
1 810
|
|
20
|
|
- 324
|
|
-116
|
|
1 391
|
|
-6.4%
|
Normalized EBITDA
|
|
2 170
|
|
20
|
|
- 402
|
|
-53
|
|
1 735
|
|
-2.4%
|
Normalized EBITDA margin
|
|
48.4%
|
|
|
|
|
|
|
|
46.8%
|
|
-104 bp
|
|
|
|
PRESS RELEASE
|
|
|
Brussels, 29 July 2016, 7.00am CET
23
/ 23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex 2
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America - South
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
17 857
|
|
-1 060
|
|
-
|
|
-1 578
|
|
15 219
|
|
-9.4%
|
Revenue
|
|
1 614
|
|
-34
|
|
-485
|
|
181
|
|
1 276
|
|
11.5%
|
Cost of sales
|
|
-619
|
|
26
|
|
158
|
|
-8
|
|
-443
|
|
-1.4%
|
Gross profit
|
|
995
|
|
-8
|
|
-327
|
|
173
|
|
833
|
|
17.6%
|
Distribution expenses
|
|
-153
|
|
6
|
|
59
|
|
-40
|
|
-128
|
|
-27.2%
|
Sales and marketing expenses
|
|
-188
|
|
1
|
|
63
|
|
-47
|
|
-171
|
|
-25.3%
|
Administrative expenses
|
|
-66
|
|
1
|
|
20
|
|
-6
|
|
-50
|
|
-9.2%
|
Other operating income/(expenses)
|
|
-
|
|
-8
|
|
-2
|
|
13
|
|
2
|
|
-
|
Normalized EBIT
|
|
588
|
|
-8
|
|
-186
|
|
93
|
|
486
|
|
16.1%
|
Normalized EBITDA
|
|
681
|
|
-8
|
|
-223
|
|
129
|
|
580
|
|
19.2%
|
Normalized EBITDA margin
|
|
42.2%
|
|
|
|
|
|
|
|
45.5%
|
|
294 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
20 657
|
|
-166
|
|
-
|
|
51
|
|
20 542
|
|
0.2%
|
of which AB InBev own beer
|
|
19 898
|
|
-166
|
|
-
|
|
183
|
|
19 916
|
|
0.9%
|
Revenue
|
|
1 922
|
|
-14
|
|
-98
|
|
87
|
|
1 896
|
|
4.6%
|
Cost of sales
|
|
-797
|
|
-
|
|
50
|
|
-39
|
|
-786
|
|
-5.0%
|
Gross profit
|
|
1 125
|
|
-14
|
|
-48
|
|
48
|
|
1 110
|
|
4.3%
|
Distribution expenses
|
|
-203
|
|
-3
|
|
12
|
|
-11
|
|
-204
|
|
-5.4%
|
Sales and marketing expenses
|
|
-438
|
|
1
|
|
24
|
|
-62
|
|
-475
|
|
-14.2%
|
Administrative expenses
|
|
-154
|
|
-
|
|
6
|
|
13
|
|
-136
|
|
8.1%
|
Other operating income/(expenses)
|
|
5
|
|
4
|
|
-1
|
|
-3
|
|
5
|
|
-35.1%
|
Normalized EBIT
|
|
335
|
|
-12
|
|
-7
|
|
-16
|
|
300
|
|
-4.8%
|
Normalized EBITDA
|
|
499
|
|
-12
|
|
-16
|
|
-7
|
|
465
|
|
-1.4%
|
Normalized EBITDA margin
|
|
26.0%
|
|
|
|
|
|
|
|
24.5%
|
|
-147 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia Pacific
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
45 286
|
|
303
|
|
-
|
|
-530
|
|
45 058
|
|
-1.2%
|
Revenue
|
|
2 822
|
|
25
|
|
-152
|
|
88
|
|
2 784
|
|
3.1%
|
Cost of sales
|
|
-1 391
|
|
-14
|
|
73
|
|
-39
|
|
-1 370
|
|
-2.8%
|
Gross profit
|
|
1 431
|
|
11
|
|
-78
|
|
49
|
|
1 414
|
|
3.4%
|
Distribution expenses
|
|
-231
|
|
-3
|
|
12
|
|
1
|
|
-220
|
|
0.6%
|
Sales and marketing expenses
|
|
-645
|
|
3
|
|
35
|
|
-35
|
|
-641
|
|
-5.4%
|
Administrative expenses
|
|
-155
|
|
-1
|
|
8
|
|
1
|
|
-146
|
|
0.9%
|
Other operating income/(expenses)
|
|
65
|
|
-
|
|
-5
|
|
47
|
|
106
|
|
73.3%
|
Normalized EBIT
|
|
465
|
|
11
|
|
-29
|
|
64
|
|
512
|
|
13.6%
|
Normalized EBITDA
|
|
762
|
|
11
|
|
-45
|
|
96
|
|
825
|
|
12.5%
|
Normalized EBITDA margin
|
|
27.0%
|
|
|
|
|
|
|
|
29.6%
|
|
248 bp
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Export and Holding
Companies
|
|
HY15
|
|
Scope
|
|
Currency
translation
|
|
Organic
growth
|
|
HY16
|
|
Organic
growth
|
Total volumes (thousand hls)
|
|
3 197
|
|
-444
|
|
-
|
|
31
|
|
2 784
|
|
1.1%
|
Revenue
|
|
997
|
|
-103
|
|
-67
|
|
73
|
|
900
|
|
8.1%
|
Cost of sales
|
|
-702
|
|
82
|
|
32
|
|
-71
|
|
-658
|
|
-11.1%
|
Gross profit
|
|
295
|
|
-21
|
|
-35
|
|
2
|
|
242
|
|
0.6%
|
Distribution expenses
|
|
-98
|
|
4
|
|
24
|
|
-1
|
|
-72
|
|
-1.5%
|
Sales and marketing expenses
|
|
-98
|
|
-5
|
|
7
|
|
-65
|
|
-161
|
|
-63.6%
|
Administrative expenses
|
|
-197
|
|
-1
|
|
3
|
|
-41
|
|
-236
|
|
-21.1%
|
Other operating income/(expenses)
|
|
11
|
|
-
|
|
-
|
|
7
|
|
19
|
|
63.4%
|
Normalized EBIT
|
|
-87
|
|
-23
|
|
-1
|
|
-98
|
|
-209
|
|
-79.5%
|
Normalized EBITDA
|
|
-15
|
|
-22
|
|
-2
|
|
-79
|
|
-118
|
|
-
|
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