Anheuser-Busch InBev Reports Declining Profit and Forthcoming Growth

Anheuser-Busch InBev sees lower profit, with share earnings down to $0.61. The outlook remains cautiously optimistic with an expected EBITDA growth of 4-8%.

Date: 26-02-2025

AI Rating: 6

Profit Analysis: Anheuser-Busch InBev NV/SA reported a decline in profit, with the fourth quarter attributable profit dropping to $1.22 billion, or $0.61 per share, from $1.89 billion, or $0.94 per share, in the same quarter last year. This decline reflects negative impacts from heightened income tax expenses.

Earnings Per Share (EPS): For the fourth quarter, the company achieved an underlying profit of $1.77 billion, yielding an EPS of $0.88, an increase from $0.82 in the same quarter of the preceding year. This surpassed analysts' expectations of $0.63 per share, suggesting some resilience in core operations despite a decline in reported profit.

Revenue Growth: Total revenue for the period increased by 3.4%, from $14.47 billion to $14.84 billion, indicating that the company is still able to drive top-line growth even in a challenging environment.

EBITDA Performance: The company reported a normalized EBITDA increase of 10.1%, climbing to $5.25 billion from $4.88 billion year-over-year, demonstrating improved operational efficiency and profitability relative to revenue despite the reported profit decline.

Future Outlook: The company has forecasted EBITDA growth of 4-8% for fiscal 2025, along with planned capital expenditures between $3.5 billion and $4.0 billion, indicating a focused investment strategy aimed at sustaining growth.

In conclusion, while Anheuser-Busch InBev faces challenges reflected in its profit numbers, the guidance on EBITDA and revenue growth points towards a moderately optimistic outlook for investors.

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