Shares in beer behemoth Anheuser-Busch InBev (AB InBev) surged 8% after it capped 2024 with a record $59.8 billion (R1.1 trillion) in revenue, a 2.7% jump from 2023.
By 5pm the shares were up 8% at R1 092 on the JSE as investors welcomed the robust performance and welcomed a hefty dividend.
The Board proposed a full year 2024 dividend of €1.00 (R19) per share - a 22% hike, subject to shareholder approval at the annual general meeting on April 30, 2025.
Michel Doukeris, the CEO, AB InBev, said, "Beer is a passion point for consumers and a vibrant category globally. The strength of our 2024 results is a testament to the consistent execution of our strategy and the hard work and dedication of our people. We delivered Ebitda growth at the top-end of our outlook and a step change in our free cash flow generation. We are investing for the long-term and are confident in our ability to lead and grow the category."
Fourth-quarter revenue hit $14.7bn up 3.4%, with pricing power pushing per-hectolitre growth to 5.5%. Profits didn’t slouch either: underlying earnings per share climbed 15.4% to $3.53, and Ebitda rose 8.2% to $20.9bn, with margins widening to 35.1%. Free cash flow swelled by $2.5bn to $11.3bn, thanks to leaner operations and a $6.9 billion debt trim, dropping the net debt-to-Ebitda ratio to 2.89 - the best since 2015.
However, it's not all positive. Global beer volumes slipped 1.4%, with own beer down 2.0%, hit hard by a high-teens plunge in Argentina and an 11.8% drop in China. Fourth quarter saw a 1.9% decline. Strip those trouble spots out, and volumes edged up 0.9%, showing resilience elsewhere. North America shed 3.8%, with US retailers down 5.0%, while Europe bucked the trend with a 4.0% gain. South America dipped 1.0%, though Brazil’s beer eked out a 0.6% rise.
Meanwhile, out of the $2bn share buyback program announced on October 31, 2024, approximately $750 million was completed.
Doukeris is pinning growth hopes on demographics and premiumisation, where megabrands like Corona and Budweiser grew 4.6%.
In 2024 the beer giant invested $7.2bn in sales and marketing behind its megabrands, mega platforms and brand building capabilities to lead the long-term growth of the global beer category.
"We successfully activated our portfolio in some of the largest consumer moments such as the Olympics, NBA, Copa America, Lollapalooza, Wimbledon and the Super Bowl, driving an increase in our overall portfolio brand power," it said in the results.
No-alcohol beers soared with low-twenties revenue growth, Corona Cero tripling volumes globally. Premium beers, 35% of sales, nudged up low-single digits, and Beyond Beer matched that pace.
Low-twenties typically means a percentage increase in the range of 20% to 29%
Digital’s humming too: BEES, AB InBev’s business-to-business e-commerce platform, hit $4bn in gross merchandise value, up 19%, with Marketplace sales soaring 57% to $2.5bn.
SAB Powers Up South Africa’s beer game
In South Africa, South African Breweries (SAB) saw a better performance in 2024. After a volume decline in 2023, South Africa’s beer market flipped to growth. Corona and Stella Artois powered low-teens volume gains, while core stalwarts Castle Lager and Hansa Pilsener added a mid-single-digit boost. Beyond Beer - Brutal Fruit, Flying Fish, Redd’s - portfolio grew volumes by high-single digits.
SAB CEO Richard Rivett-Carnac said, “We are encouraged that the beer industry returned to volume growth in FY24 following a volume decline in FY23. The momentum of our business continued, with focused investments in our megabrands increasing the Brand Power of our portfolio and driving estimated market share gains in both beer and Beyond Beer.”
BUSINESS REPORT