Anheuser-Busch InBev (NYSE:BUD) delivered a robust fourth-quarter performance, exceeding analyst expectations and driving its stock up more than 8% intra-day on Wednesday. The company marked its third straight year of hitting the high end of its guidance, underscoring consistent financial strength.
The company reported a 10.1% increase in EBITDA, outpacing the expected 7.7% growth. Full-year earnings per share landed at $3.53, surpassing the $3.34 consensus estimate, fueled by strong profit expansion and favorable financial adjustments.
Key markets contributed significantly to the upbeat results, with EBITDA surging 11.3% in South America and 16.3% in the EMEA region. Free cash flow also showed meaningful improvement, helping net debt to EBITDA decline to 2.89x, ahead of the projected 3x, positioning the company for greater financial flexibility. This strengthened balance sheet allowed ABI to boost its dividend to €1 per share, exceeding investor expectations.
While organic volumes dipped 1.9%, falling slightly below the -1.3% consensus estimate, revenue climbed 3.4%, surpassing the 2.4% forecast—a reflection of strategic pricing and product mix improvements.
For fiscal year 2025, the company reaffirmed its EBITDA growth outlook of 4-8%, aligning with its long-term targets. Additionally, net pension interest and accretion expenses are projected to decline, reducing from $220-250 million per quarter to $190-220 million, as ABI continues to chip away at its debt obligations.