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Shares of Anheuser-Busch InBev SA/NV BUD, alias AB InBev, have been doing well for a while, thanks to its robust strategic measures. Over the past three months, BUD shares have gained 25%, comfortably outperforming the broader Consumer Staples sector and the Zacks Beverages - Alcohol industry’s growth of 15.3% and 5.5%, respectively. The stock also surpassed the S&P 500 index’s drop of 10.2% in the same period.
BUD’s Growth Efforts Bode Well
The company’s relentless execution, investment in brands and accelerated digital transformation have been driving its top-line results for a while. Solid consumer demand for AB InBev’s brand portfolio has been aiding. It registered organic revenue growth of 3.4% in the most recent quarter, led by ongoing premiumization and higher revenue per hectoliter (hl), with revenue growth in 75% of its markets.
The company’s premiumization strategy is a key growth driver. It has been investing in developing a diverse portfolio of global, international and crafts and specialty premium brands in its markets. Within the above-core brands, Corona led the performance with a low-teens revenue growth outside of Mexico, including double-digit volume growth in more than 30 markets.
BUD has been focused on expanding its Beyond Beer portfolio as well. Notably, the Beyond Beer portfolio contributed 2% to total revenues in 2024, recording low single-digit growth, driven by double-digit growth in key brands such as Cutwater, Nütrl and Brutal Fruit.
AB InBev has been keen on making investments in its portfolio alongside growing its digital platform, including BEES and Zé Delivery. Its B2B digital platforms accounted for about 75% of its revenues in 2024. BUD’s omnichannel, direct-to-consumer ecosystem of digital and physical products generated $1.4 billion in revenues in 2024.
BUD Price Performance
Image Source: Zacks Investment Research
AB InBev Shows Higher Estimate Revisions
Analysts seem quite optimistic about BUD. The Zacks Consensus Estimate for AB InBev’s 2025 earnings per share (EPS) has risen 2.2% to $3.73 in the past 30 days. The consensus estimate for 2026 EPS has increased 1.5% to $4.18 in the aforementioned period.
For 2025, the Zacks Consensus Estimate for BUD’s sales and EPS implies 1.6% and 5.7% growth, respectively, year over year. For 2026, the consensus mark for sales and EPS indicates a 3.7% and 12% year-over-year increase, respectively.
Bumps in BUD’s Growth Path
AB InBev continues to witness elevated costs from commodity cost inflation and higher supply-chain costs, and investments to support long-term growth. In addition, a tough macroeconomic environment is a concern.
For 2025, AB InBev expects net pension interest expenses and accretion expenses to be in the band of $190-$220 million per quarter, based on currency and interest rate fluctuations.