Anheuser-Busch / InBev 2011 & 4th Quarter 2011 Results

Except where otherwise stated, the comments below are based on organic growth figures and refer to FY11 and 4Q11 versus the same periods of last year.

HIGHLIGHTS

–Revenue growth: Revenue grew 4.6% in FY11 and 5.7% in 4Q11, with revenue per hl improving 5.0% in FY11 and 6.7% in 4Q11. On a constant geographic basis (i.e. eliminating the impact of faster growth in countries with lower revenue per hl) revenue per hl grew 5.8% in FY11 and 7.2% in 4Q11, reflecting selective price increases taken in 4Q11, in anticipation of higher commodity costs in 2012.

– Volume performance: Total volumes in FY11 decreased 0.2%, with own beer volumes decreasing 0.1% and non-beer volumes growing 1.5%. Third party volumes decreased 29.5% due to the termination of legacy commercial products contracts in Western Europe. In 4Q11, total volumes declined 0.6%, with own beer volumes decreasing 0.3% and non-beer volumes growing 0.7%.

– Focus Brands: In FY11, our three global brands of Budweiser, Stella Artois and Beck’s grew by 3.3%. Total Focus Brand volumes grew by 0.8%, led by Quilmes in Argentina, Antarctica in Brazil, Budweiser and Harbin in China and Bud in Russia.

– Market share: In FY11, market share was ahead of last year in Argentina, China, Germany, Belgium and Ukraine, down in the UK and slightly lower in Canada and Russia. In Brazil, share for the year declined but was still the second highest in ten years. In the United States, share contraction was concentrated in our sub-premium brands, while our Focus Brands performed well in line with our brand strategies.

– Cost of Sales: Cost of Sales (CoS) increased 1.6% in FY11, or 1.7% per hl. In 4Q11, CoS increased by 0.1%, or 0.8% per hl. On a constant geographic basis, CoS per hl increased 2.7% in FY11 and 1.7% in 4Q11.

– EBITDA: In FY11, normalized EBITDA grew 10.7% in nominal terms and 7.7% organically to 15 357 million USD, with EBITDA margin expanding by 113 bp to 39.3%. In 4Q11, EBITDA rose 8.8% in nominal terms and 12.2% organically to 4 237 million USD with a margin of 42.9%, an organic improvement of 251 bp.

– Net finance costs of 357 million USD in 4Q11 include net interest expenses of 496 million USD, accretion expenses of 61 million USD, and gains in other financial results of 200 million USD from derivative contracts related to our share-based payment programs.

– Profit: Normalized profit attributable to equity holders of AB InBev grew 28.0% in nominal terms to 6 449 million USD in FY11 from 5 040 million USD in FY10, and by 60.7% in nominal terms to 1 959 million USD in 4Q11 from 1 219 million USD in 4Q10.

– Earnings per share (EPS): Normalized EPS grew 27.4% to 4.04 USD in FY11 from 3.17 USD in FY10. 4Q11 normalized EPS grew 59.7% to 1.23 USD from 0.77 USD in 4Q10.

– Cash flow: Cash flow from operating activities increased 26% on a nominal basis, to 12 486 million USD in FY11 from 9 905 million USD in FY10.

– Net debt: Our net debt as of 31 December 2011 was 34.7 billion USD, a decrease of 5.0 billion USD from 31 December 2010, for a net debt to normalized EBITDA ratio of 2.26x versus 2.86x at the end of 2010.

– Dividend: The AB InBev Board proposes a dividend of 1.20 EUR per share, subject to shareholder approval. If approved, the shares will trade ex-coupon as of 27 April 2012 and dividends will be payable as from 3 May 2012. The record date will be 2 May 2012.

– 2011 Financial Report: The report is available at www.ab-inbev.com. 

The full press release, including management comments and important disclaimers, is available at http://www.ab-inbev.com/press_releases/20120308_1_e.pdf.