Anheuser-Busch InBev reports worldwide revenue rose 4.8% as worldwide volume grew 0.3% in Fiscal 2018. ABI’s own beer volumes were up 0.8% as the combined volume of its three global brands – Budweiser, Stella Artois and Corona grew 9% for the year. Net profit fell 17.2% to $6.79 billion, or $3.44 a share.
In North America, volume dipped 2.5%, and own beer volume was off even more, down 2.6%. In the U.S., the company says, ABI achieved its highest market share trend performance since 2012, “driven by the evolution of our commercial strategy, led by premiumization and innovation.”
ABI’s high debt level needs to be reduced to an optimal two times net debt to EBITDA, the company says, acknowledging it has a ways to go to achieve that goal: “We expect our net debt to EBITDA ratio to be below 4x by the end of 2020.”
In the U.S., net revenue fell 0.7% in FY 2018, but revenue per hectoliter grew 1.9%. Sales to retailers fell 1.8% in FY 2018, and STRs of its own brands were down 2.7%. Still, the company said, it achieved its best annual share trend performance since 2012, losing only 40 bps in 2018.
The above-core portfolio “continues to outperform the industry and accelerated share gains in FY2018 to 90 bps, nearly double the year-earlier 50 bps. Michelob Ultra “accelerated its growth this quarter, solidifying its position as the top share gainer in the U.S. for the past four years.
“Within their segments, Budweiser and Bud Light are performing better than prior year trends. However, the core and core light segments remain under pressure as consumers trade up to higher price tiers,” with the result Budweiser and Bud Light lost 35 bps and 80bps of estimated total market share, respectively.
Looking at its global brands, ABI said Budweiser revenue grew 10% outside the U.S., “driven by continued expansion into new geographies as well as our activation during the 2018 FIFA World Cup Russia. Stella Artois continued to sell strong, balanced up, up 5.2%, driven by its increased penetration of the meal occasion. Corona leads the way as the most premium brand among the three, growing double digits for the fourth consecutive year, with revenue up 17.6% globally and 28.5% outside of Mexico.”
ABI said it is committed to growing its nonalcohol and alcohol-free segment, which currently represents 10% of its business.