Anheuser-Busch InBev SA/NV (NYSE:BUD) reported second-quarter 2024 revenue growth of 2.7% organically year-over-year to $15.333 billion, beating the analyst consensus estimate of $13.561 billion.
On an Organic basis, total volumes declined by -0.8%, with own beer volumes down by 1.3% and non-beer volumes up by 3.4%. Revenue per hl grew 3.6%.
The company stated that 3.3% rise in total revenues of megabrands was driven by Corona, which saw a 5.6% growth outside its domestic market in the quarter.
Gross profit expanded 7% organically to $8.567 billion, and gross margin expanded 224 bps YoY to 55.9%.
Normalized EBITDA for the quarter grew 10.2% organically to $5.302 billion, with the margin expanding 236 basis points to 34.6%.
The underlying profit for the quarter was $1.811 billion compared to $1.452 billion last year. Underlying EPS of $0.90 beat the consensus estimate of $0.87.
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"Our global momentum continued this quarter. The strength of our diversified footprint and consumer demand for our megabrands delivered another quarter of broad-based top- and bottom-line growth," commented CEO Michel Doukeris.
BUD's net debt to normalized EBITDA ratio was 3.42x at June-end compared to 3.70x at June-end 2023 and 3.38x at December-end 2023.
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For the six months ended June 30, the company invested $5.3 billion in capex and sales and marketing while delivering a free cash flow of ~$0.9 billion, a $1.4 billion improvement versus a year ago.
Outlook: Anheuser-Busch InBev expects its 2024 EBITDA to grow in line with its medium-term outlook of 4% – 8%. It expects FY24 capital expenditures of $4 billion-$4.5 billion.
Price Action: BUD shares are trading higher by 2.37% at $60.91 at the last check Thursday.
Photo: Engin Akyurt from Pixabay.