• AB InBev's Q1 2024 revenue rises, driven by megabrands' success.
  • Normalized EBITDA for AB InBev climbs, reflecting strong profitability.
  • Digital platforms contribute to 70% of AB InBev's revenue capture.

Anheuser-Busch InBev (AB InBev), the global brewing giant with a stake in Delta Corporation, Zimbabwe's largest beverage company, recently announced its financial results for the 1st quarter of 2024. The company reported a 2.6% increase in revenue and a 5.4% growth in normalized EBITDA, driven by robust demand for its megabrands and successful execution of its strategic priorities.

According to the report, AB InBev's revenue rose to US$14 547 million, propelled by a 3.3% increase in revenue per hectolitre, reflecting the company's effective revenue management initiatives and ongoing premiumization efforts. The company's megabrands, including Corona, Budweiser, and Stella Artois, spearheaded this growth, collectively contributing to the increase in revenue.

AB InBev's normalized EBITDA, a key profitability metric, climbed to US$4 987 million. The company's EBITDA margin expanded by 90 basis points, reaching 34.3%, driven by disciplined overhead management and strategic investments in sales and marketing initiatives.

The brewing giant's underlying profit, which excludes non-underlying items and hyperinflation impacts, stood at US$1 509 million for the quarter, representing a 15% increase compared to the same period last year. This impressive growth was attributed primarily to nominal EBITDA growth, margin expansion, and the continued optimization of the company's net finance costs.

In line with its strategic priorities, AB InBev continued to digitize and monetize its ecosystem, with approximately 70% of its revenue captured through B2B digital platforms. The company's digital direct-to-consumer ecosystem generated revenue of approximately US$130 million, showcasing the growing importance of digital channels in the beverage industry.

AB InBev's strong quarterly performance underscores the company's resilience and ability to capitalize on global consumer trends. With its diverse portfolio of iconic brands, robust digital platforms, and commitment to optimizing its business, the brewing giant remains well-positioned to deliver long-term value creation and continued growth in markets worldwide, including Zimbabwe, where its investment in Delta Corporation plays a pivotal role.

-Equity Axis News