Anheuser-Busch InBev SA/NV (BUD) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 4, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to Anheuser-Busch InBev's First Quarter 2023 Earnings Conference Call and Webcast. Hosting the call today from AB InBev are Mr. Michel Doukeris, Chief Executive Officer; and Mr. Fernando Tennenbaum, Chief Financial Officer. To access the slides accompanying today's call, please visit AB InBev's website at www.ab-inbev.com and click on the Investors tab and the Reports and Results Center page. Today's webcast will be available for on-demand playback later today. [Operator Instructions]

Some of the information provided during the conference call may contain statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. It is possible that AB InBev's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect AB InBev's future results, see risk factors in the company's latest annual report on Form 20-F filed with the Securities and Exchange Commission on March 17, 2023. AB InBev assumes no obligation to update or revise any forward-looking information provided during the conference call and shall not be liable for any action taken in reliance upon such information.

It is now my pleasure to turn the floor over to Mr. Michel Doukeris. Sir, you may begin.

Michel Doukeris

Thank you, Jesse and welcome, everyone, to our first quarter 2023 earnings call. It is a great pleasure to be speaking with you all today. Today, Fernando and I will take you through our first quarter operating highlights and provide you with an update on the progress we've made in executing our strategic priorities. After that, we will be happy to answer your questions.

Let me start with our operating performance. Our business momentum continued this quarter and we are very pleased with our strong performance to start the year. We delivered revenue growth of 13.2%, with volumes up by 0.9%. Revenue per hectoliter increased by 12.4% driven by price actions across our markets, other revenue management initiatives and ongoing premiumization. We grew EBITDA by 13.6% with a margin expansion of 13 basis points despite continued commodity cost headwinds and while increasing sales and marketing investments in our brands.

Underlying EPS was US$0.65, an 8.7% increase versus last year. Our focus on disciplined resource allocation and everyday efficiency continues to enable us to invest for the long term while delivering consistent profitable growth. We delivered broad-based growth this quarter with both top and bottom line increases in all 5 of our regions. Revenue increased in 80% of our markets, with volume growth in over 60%. Our diverse geographic footprint provides a unique combination of growth and reliable cash flow generation, positioning us well to deliver superior long-term value creation.