Key Takeaways:
Anheuser-Busch InBev reported second-quarter revenue of $16.66 billion, up 5.6% organically, as global megabrand momentum and World Cup activation drove forecast-beating results.
"Our performance this quarter reflects the strength of the beer category and the consistent execution of our strategy," Chief Executive Officer Michel Doukeris said.
Normalized EBITDA rose 5.8% to $5.94 billion, topping the 4.6% growth analysts had expected in a company-compiled consensus. Underlying profit reached $2.39 billion, up from $1.95 billion a year earlier, while underlying EPS climbed 23.4% to $1.21. Beer volumes grew 1.1%, marking a second consecutive quarter of expansion after years of declines.
Shares of the Leuven-based brewer have gained about 22% this year. The company maintained its medium-term outlook for EBITDA growth of 4% to 8% in fiscal 2026, signaling confidence that consumer demand will hold despite an uneven global recovery.
The beat was broad-based. In the US, revenue increased 2.7% as Michelob Ultra, Busch Light and Busch Light Apple were the top three volume share gainers in the industry, according to Circana data. The brewer's Beyond Beer portfolio — led by Cutwater spirits — grew revenue in the mid-seventies, with Cutwater alone posting triple-digit growth and becoming the No. 1 share-gaining brand in total spirits.
Latin America delivered the strongest performance. Brazil beer volumes rose 5%, with EBITDA jumping 16.1% on 230 basis points of margin expansion. Colombia posted record-high second-quarter volumes, with revenue up by high teens. Mexico volumes grew slightly and outperformed the industry, with EBITDA rising by high single digits.
Europe posted low-single-digit volume growth, with Corona leading at mid-teens volume gains. South Africa revenue rose by mid-single digits, though volumes declined slightly. The Asia Pacific region was the weak spot: China volumes fell 9.7% because of adverse weather and continued weakness in the on-premise channel, dragging EBITDA down 16.1%. Korea and India posted double-digit growth but could not offset China's drag.
The company's digital ecosystem continued to scale. BEES Marketplace gross merchandise value from third-party products surged 50% to $1.2 billion. Direct-to-consumer platforms Zé Delivery, TaDa Delivery and PerfectDraft served 13 million active consumers and generated $165 million in revenue, up 12%.
AB InBev completed $1.9 billion of its $6 billion share buyback program as of July 24. Net debt to normalized EBITDA improved to 2.86x from 3.27x a year earlier, moving closer to the company's optimal target of around 2x.
The results show the brewer's ability to navigate a dynamic consumer environment through premiumization and digital monetization. Investors will watch the second-half trajectory for China, where management is focused on improving execution and expanding in-home channel presence to rebuild momentum.
This article is for informational purposes only and does not constitute investment advice.
