Anheuser Busch Companies (BUD)

[FUNMAN]

Anheuser-Busch InBev beats by $0.05, beats on revenue (Nice dividend growth too.)



Mar. 1, 2018 6:11 AM



http://www.ab-inbev.com/content/dam/universaltemplate/ab-inbev/News/press-releases/public/2018/03/ENGLISH.pdf



Anheuser-Busch InBev (NYSE:BUD): Q4 EPS of $1.04 beats by $0.05.



Revenue of $14.6B (+2.8% Y/Y) beats by $110M.



Shares +5.4% PM.




Anheuser-Busch InBev reports fourth quarter and full year 2017 results






HIGHLIGHTS



? Revenue: Revenue grew by 5.1% in FY17 and by 8.2% in 4Q17, with revenue per hl growth of 5.1%
in FY17 and 6.6% in 4Q17. On a constant geographic basis, revenue per hl grew by 5.1% in FY17
and by 6.7% in 4Q17, driven by global premiumization and revenue management initiatives.



? Volume: Total volumes grew by 0.2% in FY17, with own beer volumes up 0.6% and non-beer
volumes down 3.1%. In 4Q17, total volumes increased by 1.6%, with own beer volumes up 2.3% and
non-beer volumes down 3.6%.



? Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona,
grew by 9.8% in FY17 and by 17.8% in 4Q17. Outside of their respective home markets, the global
brands grew by 16.8% in FY17 and by 29.0% in 4Q17.



? Cost of Sales (CoS): CoS increased by 2.6% in FY17 and by 2.6% on a per hl basis. On a constant
geographic basis, CoS per hl increased by 3.1% in FY17. In 4Q17, CoS increased by 4.6% and by
3.2% on a per hl basis. On a constant geographic basis, CoS per hl increased by 3.3% in 4Q17.



? EBITDA: EBITDA increased by 13.4% in FY17 to 22 084 million USD, as a result of strong top-line
growth and enhanced by synergy capture. EBITDA margin expanded by 288 bps to 39.1% in FY17.
In 4Q17, EBITDA increased by 21.0% to 6 189 million USD with EBITDA margin expansion of 446
bps to 42.4%.



? Net finance results: Net finance costs (excluding non-recurring net finance results) were 5 814
million USD in FY17 compared to 5 208 million USD in FY16. In 4Q17, net finance costs were 1 559
million USD compared to 2 037 million USD in 4Q16.



? Income taxes: Income tax in FY17 was 1 920 million USD with a normalized effective tax rate (ETR)
of 22.9%, compared to 1 613 million USD in FY16 and a normalized ETR of 20.9%. In 4Q17, income
tax expense was positive by 568 million USD with a normalized ETR of 32.1%, compared to an
income tax expense of 553 million USD in 4Q16 and a normalized ETR of 28.6%.



? Profit: Normalized profit attributable to equity holders of AB InBev increased by 64.2% on a reported
basis from 4 853 million USD in FY16 to 7 967 million USD in FY17, due to stronger top-line growth
and synergy capture. Normalized profit attributable to equity holders of AB InBev increased by
123.5% on a reported basis from 919 million USD in 4Q16 to 2 054 million USD in 4Q17.



? Earnings per share: Normalized earnings per share (EPS) increased by 42.8% on a reported basis
from 2.83 USD in FY16 to 4.04 USD in FY17, and by 141.9% on a reported basis from 0.43 USD in
4Q16 to 1.04 USD in 4Q17.



? Dividend: The AB InBev Board proposes a final dividend of 2.00 EUR per share, subject to
shareholder approval at the AGM on 25 April 2018. When combined with the interim dividend of 1.60
EUR per share paid in November 2017, the total dividend for FY17 would be 3.60 EUR per share. A
timeline showing the ex-coupon dates, the record dates, and the payment dates can be found on
page 19.



? Combination with SAB: The business integration resulted in synergies and cost savings of 1 304
million USD in FY17, of which 381 million USD were delivered in 4Q17. We have now delivered 2 133
million USD of the expected 3.2 billion USD synergies and cost savings on a constant currency basis
as of August 2016.



? 2017 Full Year Financial Report is available on our website at www.ab-inbev.com.