# Anheuser-Busch InBev SA/NV (BUD) — Narrative, third quarter 2026

AB InBev reports in US dollars, so almost every figure below is as the company printed it. The few amounts the company states in euros (dividends per share, euro bond issues) have been converted to US dollars at the rate shown. One American Depositary Share (ADS) represents one ordinary share, so per-share and per-ADS amounts are the same. Growth rates labelled "organic" are the company's own measure, which excludes currency translation and changes in scope (acquisitions, disposals, and Argentine price growth above a 2%-per-month cap).

## Business

*Source: Annual Report on Form 20-F for the fiscal year ended 31 December 2025, accession 0001193125-26-088105 (Item 4).*

AB InBev is the world's largest brewer by volume. It brews, markets, distributes and sells a portfolio of well over 400 beer and other malt-beverage brands, along with soft drinks, energy drinks and spirits-based ready-to-drink cocktails. It sells to retailers and other points of sale, directly or through distributors; in the United States the vast majority of its beer goes to independent wholesalers. In 2025 it sold 561.1 million hectoliters and reported revenue of $59,320 million. Beer brought in $53,050 million of that revenue (89%) and non-beer $6,269 million (11%). The company holds the number one beer market share by volume in the United States, Mexico and Brazil, three of the five largest beer profit pools in the world, and is number one in more than 30 countries. About 65% of 2025 revenue came from developing markets and 35% from developed markets.

The brand portfolio has three tiers. The four global brands are Budweiser, Corona, Stella Artois and Michelob ULTRA. The multi-country brands include Beck's, Hoegaarden, Leffe, Modelo and Flying Fish. Local champions include Bud Light, Busch Light, Brahma, Skol, Aguila, Cass, Harbin, Victoria and Castle. Twenty brands each had an estimated turnover above $1 billion in 2025. In the United States, Constellation Brands holds the exclusive, perpetual right to sell Corona, Modelo Especial, Pacifico and certain other Grupo Modelo brands, a consequence of the 2013 Grupo Modelo combination. AB InBev therefore sells Corona everywhere except the US.

The company manages six business segments. Their 2025 revenue was:

- **Middle Americas**: $17,376 million (29.3%). Covers Mexico, Colombia, Peru, Ecuador, the Dominican Republic, Central America and the Caribbean. It is the largest and highest-margin segment.
- **North America**: $14,207 million (24.0%). Covers the United States and Canada.
- **South America**: $11,954 million (20.2%). Covers Brazil, Argentina, Bolivia, Chile, Paraguay and Uruguay, largely through Ambev, which is listed in São Paulo and New York and in which AB InBev held a 61.73% interest at year-end 2025. Ambev produced 26.6% of group revenue ($15.8 billion) in 2025.
- **EMEA**: $9,502 million (16.0%). Covers Europe (Belgium, the UK, Germany, France, the Netherlands and others) and Africa (South Africa, Nigeria, Tanzania, Mozambique, Uganda, Zambia and others).
- **Asia Pacific**: $5,693 million (9.6%). Covers China, South Korea, India and Vietnam, largely through Budweiser APAC, which is listed in Hong Kong and 87.22% owned. Budweiser APAC produced 9.7% of group revenue ($5.8 billion).
- **Global Export and Holding Companies**: $588 million (1.0%).

Strategy has three pillars. The first, *lead and grow the category*, uses four levers: core superiority, premiumization, "Balanced Choices" (low-carb, low-calorie and no-alcohol beers) and "Beyond Beer" (flavored malt beverages, hard seltzers and canned cocktails such as Cutwater and NÜTRL). The second, *digitize and monetize the ecosystem*, centres on BEES, the company's business-to-business ordering and marketplace platform. At end-2025 BEES was live in 29 countries and had captured $52.5 billion of gross merchandise value (GMV) in the year, including about $3.5 billion from third-party products sold through BEES Marketplace. Direct-to-consumer operations (around 10,000 stores such as Modelorama, plus the Zé Delivery, TaDa Delivery and PerfectDraft apps) generated about $1.3 billion of revenue. The third pillar, *optimize the business*, means disciplined resource allocation and continued deleveraging. The company targets net debt of around 2x Normalized EBITDA.

AB InBev is headquartered in Leuven, Belgium, and had about 137,000 employees in more than 40 countries at end-2025. Its primary listing is on Euronext Brussels, with secondary listings in Johannesburg and Mexico and ADSs on the NYSE. Today's group is the product of a series of combinations: Interbrew with Ambev (2004), InBev with Anheuser-Busch ($54.8 billion, 2008), Grupo Modelo (2013) and SAB ($114 billion gross consideration, 2016). The Stichting Anheuser-Busch InBev held 33.99% of voting rights at end-2025, and 39.50% together with entities acting in concert with it, and effectively controls the election of a majority of the board.

## Risk factors

*Source: Form 20-F for fiscal 2025, accession 0001193125-26-088105 (Item 3.D; contingencies from note 29).*

These are the risks with the most specific substance for this company:

- **Currency translation and transaction.** In 2025, 75% of revenue came from operating companies whose functional currency is not the US dollar, and translation exposure cannot be hedged. Unfavorable currency translation (including hyperinflation accounting) cut 2025 revenue by $1.3 billion, mainly through the Argentine peso, Brazilian real and Mexican peso. Much of the debt is in US dollars while cash flows are not.
- **Developing-market exposure.** About 65% of revenue comes from developing markets, mostly in Latin America. There the company faces devaluation, inflation, currency controls and restrictions on repatriating cash. Argentina has been reported under hyperinflation accounting since 2018.
- **Leverage and credit ratings.** Net debt was $60.9 billion at end-2025, against an optimal ratio of around 2x Normalized EBITDA. The ratings were A-/A-2 from S&P and A3/P-2 from Moody's, both with positive outlooks at the 20-F date. A downgrade would raise borrowing costs. The level of debt also constrains dividends and other uses of cash.
- **Holding-company structure.** Operations run through subsidiaries, and two large ones are only partly owned and separately listed: Ambev (26.6% of 2025 revenue) and Budweiser APAC (9.7%). Getting cash up to the parent depends on local law, currency controls and dividend restrictions.
- **Input costs and concentrated suppliers.** Major costs include malted barley, corn, rice, hops, aluminum cans and can stock, glass and PET, and energy. They are exposed to tariffs, conflict, weather and currency moves. Hedges only protect in the short term. Consolidation among can and glass-bottle makers leaves few suppliers in some markets, and some subsidiaries buy nearly all of a key packaging material from a single supplier.
- **Health policy, regulation and excise taxes.** Public-health pressure on alcohol could reduce demand. That includes warning labels, dietary guidance, marketing restrictions and the wider use of weight-loss drugs, which the company names as a factor in changing consumption. Excise and other indirect taxes are a large share of the consumer price in many markets, so increases hurt both volumes and margins.
- **Reputation and brand image.** Negative publicity, including consumer reaction to the company's perceived stance on political and social issues and to its sponsorship partners, has reduced consumers' willingness to buy certain of its products in the past and could do so again.
- **Competition and changing tastes.** Consolidation among brewers, fragmentation into other beverage categories, and digital disruption of distribution could force lower prices or higher marketing spending.
- **Russia/Ukraine and AB InBev Efes.** The company announced in April 2022 that it would exit its 50% non-controlling stake in AB InBev Efes and wrote it off with a $1,143 million impairment. An agreed swap of the Russian and Ukrainian interests with Anadolu Efes did not receive regulatory approval. A Russian decree of 30 December 2024 placed the Russian operations under temporary management, and the company says there can be no assurance about the status of the investment.
- **Brazilian tax disputes.** The estimated possible loss on Ambev's tax proceedings totalled $19,049 million at 31 December 2025, up from $15,691 million a year earlier. Income-tax and social-contribution matters, such as the taxation of foreign subsidiaries' profits and goodwill amortization, account for $13,122 million of that.
- **Earnings volatility from equity hedges.** The company hedges its own share price for share-based pay and for shares issued in the Grupo Modelo and SAB deals. These derivatives do not qualify for hedge accounting, so their mark-to-market runs through profit. A 24% move in the share price would change 2025 pre-tax profit by about $1,563 million either way.
- **Goodwill and intangibles.** Goodwill was $117.9 billion and indefinite-life intangibles were $38.5 billion at end-2025. Impairment testing found no charge was needed in 2025, but underperformance could force one.
- **Controlling shareholder.** The Stichting's voting control can block or delay a change of control or a dilutive action that other shareholders might favour.
- **Legacy deal constraints and sanctions.** Under the 2016 US Department of Justice consent decree from the SAB deal, AB InBev cannot acquire control of a distributor if that would put more than 10% of its US volume through majority-owned distributors, and it must give 30 days' notice of certain US beer acquisitions. Through Ambev it indirectly owns 50% of Cervecería Bucanero in Cuba, a joint venture with the Cuban government that carries US sanctions and Helms-Burton exposure. Bucanero sold 1.24 million hectoliters in 2025.
- **Labor.** About 5,100 US hourly brewery workers are represented mainly by the Teamsters, under a contract that runs to 28 February 2029. A majority of hourly brewery employees in several key countries are unionized.

## Management's discussion: fiscal 2025

*Source: Form 20-F for fiscal 2025, accession 0001193125-26-088105 (Item 5).*

**Results.** 2025 was a year of flat-to-lower volumes, with pricing, premiumization and cost control lifting margins and earnings. Volumes fell 2.5% to 561.1 million hectoliters, or 2.3% organically, as weak consumer demand and unseasonable weather hit key markets. Reported revenue fell 0.8% to $59,320 million, held back by $1,336 million of negative currency translation. Organically, revenue rose 2.0% and revenue per hectoliter rose 4.4%. Normalized EBITDA was $21,223 million, up 1.3% as reported and 4.9% organically. Reported profit from operations slipped 0.5% to $15,405 million because of $449 million of exceptional charges. These included a $214 million loss tied to the planned sale of the Newark brewery and the closure of two other US breweries, and a $49 million South Korean customs-audit expense at Oriental Brewery. Profit attributable to equity holders rose to $6,837 million from $5,855 million, and basic EPS to $3.45 from $2.92. The main drivers were lower net finance expense ($4,465 million vs $5,353 million, helped by a much smaller mark-to-market loss on equity hedges: $213 million vs $1,211 million) and a lower effective tax rate (26.1% vs 31.1%). On the company's non-IFRS measures, Underlying profit was $7,410 million (2024: $7,061 million) and Underlying EPS $3.73 (2024: $3.53).

**Segments.** Middle Americas grew profit from operations 8.4% to $7,382 million, and EMEA grew it 14.5% to $2,022 million. North America fell 13.8% to $3,747 million, Asia Pacific fell 17.2% to $1,011 million and South America fell 3.4% to $2,909 million. In the US, sales-to-retailers fell 3.2%, though the company estimates it beat the industry. Michelob ULTRA was the leading US beer brand by volume and the top volume share gainer, and Cutwater was the top share-gaining brand in total US spirits in the fourth quarter. Brazil's volumes fell 4.1% because of weather and a soft consumer, though premium brands grew by high-teens. China's volumes fell 8.6% as the company adjusted inventory levels; it describes results there as below potential. In Europe, the San Miguel distribution deal (effective January 2025) made AB InBev the UK's leading brewer.

**Cash flow and capital allocation.** Operating cash flow was $14,883 million and net capital expenditure $3,552 million, leaving adjusted free cash flow of $11,331 million, essentially flat on 2024. Financing outflows rose to $11,450 million. Dividends paid were $4,543 million, of which $2.6 billion came from AB InBev and $1.9 billion from Ambev and to minorities. Share buybacks used $2,301 million. The company completed its $2 billion 2024 buyback and on 30 October 2025 announced a new $6 billion programme, of which $0.4 billion was done by year-end. Net debt rose slightly to $60.9 billion from $60.6 billion; the change included a $2.8 billion foreign-exchange effect that increased net debt. Total borrowings were $73.0 billion, 97.9% at fixed rates, and just $884 million matures within a year. In May 2025 the parent issued three euro bonds totalling EUR 3.25 billion ($3.65 billion at the 19 May 2025 rate), due 2033, 2038 and 2045. It also bought back $1.8 billion of US-dollar notes in tender offers and redeemed further 2026 and 2028 maturities. The $10.1 billion sustainability-linked revolving credit facility was undrawn.

**Dividend.** The policy is to pay at least 25% of profit attributable to equity holders, excluding exceptional items. For 2025 the board proposed a final dividend of EUR 1.00 per share ($1.19 at the 11 February 2026 rate). Shareholders approved it on 29 April 2026. With the EUR 0.15 interim ($0.17 at the 30 October 2025 rate) paid in November 2025, the full-year dividend came to EUR 1.15 ($1.37 at the 11 February 2026 rate).

## Current period: third quarter and nine months to 30 September 2026

*Sources: third-quarter results press release, Form 6-K accession 0001193125-26-437051 (Exhibit 99.1, three-month figures), and the Unaudited Interim Report for the nine months ended 30 September 2026, Form 6-K accession 0001193125-26-437056 (Exhibit 99.1). The balance-sheet position is from the half-year Interim Financial Report, Form 6-K accession 0001193125-26-326285 (Exhibit 99.2).*

**The quarter in one paragraph.** Third-quarter 2026 continued the pattern of modest volume growth, price/mix-driven revenue growth and faster earnings growth, with China the clear weak spot. Total volumes rose 0.4% organically to 142.3 million hectoliters. Beer volumes were down 0.1% because a sharp drop in China offset growth elsewhere, while non-beer volumes rose 4.0%. Revenue rose 4.9% organically, with revenue per hectoliter up 4.2%. Reported revenue rose 9.1% to $16,512 million, helped by currency translation. Normalized EBITDA grew 3.9% organically to $5,957 million. Its margin narrowed to 36.1% from 37.0% (an organic contraction of 34 basis points) because the company stepped up sales and marketing behind its mega platforms and faced commodity cost headwinds; overhead discipline only partly offset these. Normalized EBIT grew 6.0% organically to $4,538 million. Profit attributable to equity holders was $1,597 million, against $1,054 million a year earlier, and basic EPS was $0.81 against $0.53. Underlying EPS rose 22.4% to $1.21 from $0.99, or 13.9% at constant currency. Net finance expense, before non-underlying items, fell to $908 million from $1,165 million. The quarter still carried an $800 million mark-to-market loss on the equity hedges, as AB InBev's share price fell during the quarter. The normalized effective tax rate rose to 26.9% from 25.1% on country mix.

**Segments in the quarter (organic).**

- **Middle Americas** was the growth engine. Volumes rose 7.3%, revenue 12.1% and Normalized EBITDA 15.6% to $2,644 million, with the margin at 50.5%. Mexico grew revenue by high-single digits and EBITDA by low-teens. Colombia grew revenue by mid-teens and EBITDA by high-teens. Peru and Ecuador set third-quarter volume records.
- **South America**: revenue rose 9.1% and EBITDA 13.8% to $1,025 million. Brazil's revenue rose 5.3% on 1.4% volume growth, and its EBITDA rose 6.1% with 26 basis points of margin expansion. Argentina's volumes fell by mid-single digits in a weak economy.
- **North America**: revenue fell 0.9% and EBITDA 3.5% to $1,296 million. US revenue fell 1.2% and EBITDA 4.0%. Sales-to-retailers fell 3.1% and sales-to-wholesalers 2.7%, while marketing and transport/commodity costs rose. The company says it has gained share of total US alcohol for ten consecutive quarters, with Michelob ULTRA and Busch Light the top two volume share gainers.
- **EMEA**: revenue rose 4.0% but EBITDA fell 1.4% to $866 million. Europe was flat on volume, with EBITDA down by mid-single digits on higher marketing and commodity costs. South Africa grew revenue by high-single digits, with flat EBITDA.
- **Asia Pacific**: revenue fell 9.5% and EBITDA 22.4% to $339 million, with the margin down 426 basis points to 24.0%. In China, volumes and revenue each fell 16.8% and EBITDA fell 30.5%. The company attributes this to abnormal weather, a weak on-premise channel and its own inventory management, and estimates the industry in its footprint fell by low-teens.

**Commercial and digital.** Combined revenue of the megabrands rose 7.7%. Outside their home markets, Corona grew revenue 20%, Stella Artois 19% and Michelob ULTRA 50%. No-alcohol beer revenue rose 35% and Beyond Beer revenue 19%. BEES captured $15.9 billion of GMV in the quarter (up 12%), and BEES Marketplace third-party GMV rose 45% to $1.4 billion. At 30 September BEES was live in 30 markets, and 73% of revenue was captured through business-to-business digital platforms.

**Nine months.** For the first nine months of 2026, revenue was $48,439 million. That is up 10.7% as reported, including $2,445 million of positive currency translation, and up 5.4% organically. Normalized EBITDA was $17,332 million, up 5.0% organically, with a margin of 35.8%. Profit attributable to equity holders jumped to $7,910 million from $4,878 million, and basic EPS to $4.01 from $2.46. The main driver was a $1,233 million mark-to-market gain on the equity hedges, against a $608 million loss a year earlier. On the company's measures, which exclude that gain, Underlying profit was $6,710 million and Underlying EPS $3.40, up 22.2% (12.0% at constant currency). The effective tax rate fell to 23.2% because the hedge gains are not taxable. Exceptional items in profit from operations were a small net gain of $3 million. This mainly reflects a gain on the sale of the Newark, US brewery, partly offset by impairment of non-core assets, $56 million of restructuring and $14 million of BeatBox deal costs.

**Portfolio changes in 2026.** Three changes in scope affect comparisons with 2025. The company reacquired the 49.9% minority stake in its US metal-container plants from an Apollo-led consortium for about $2.9 billion, closing on 30 January 2026. It acquired 85% of the US ready-to-drink business BeatBox Beverages for up to about $490 million, closing on 27 February 2026. And from 1 January 2026 it accounts for Cervecería Bucanero (Cuba) as an associate rather than consolidating it.

**Balance sheet (latest disclosed).** Neither third-quarter filing updates net debt, so the latest figure is from 30 June 2026. Net debt then stood at $64.2 billion, up from $60.9 billion at year-end. Operating results net of capital expenditures offset most of the outflows behind the increase: interest and tax payments ($3.8 billion), the container-plant reacquisition ($2.9 billion), dividends ($2.6 billion), buybacks by AB InBev and Ambev ($1.8 billion) and BeatBox ($0.5 billion). A $0.9 billion favorable currency effect reduced net debt further. Net debt to Normalized EBITDA was 2.86x, against 2.87x at end-2025 and the 2x target. Liquidity was $18.1 billion, made up of $8.0 billion of cash and short-term debt securities net of overdrafts and $10.1 billion of undrawn committed facilities. The first-quarter results release (Form 6-K accession 0001193125-26-205213) reported that Moody's had upgraded the long-term rating from A3 to A2. At 30 June 2026 the ratings were A2/P-1 with a stable outlook from Moody's and A-/A-2 with a positive outlook from S&P.

**Outlook for 2026.** The company expects:

- EBITDA growth within its medium-term range of 4–8%.
- Net pension interest and accretion expense of $190–220 million per quarter.
- An average gross debt coupon of about 4%.
- A normalized effective tax rate of 26–28%.
- Net capital expenditure of $3.5–4.0 billion.

## Subsequent events

*Sources: Form 6-K accession 0001193125-26-437051 (Exhibit 99.1) and Form 6-K accession 0001193125-26-437056 (Exhibit 99.1, "Recent events").*

The third-quarter filings report the following developments after the 30 September 2026 period end:

- **Interim dividend raised.** On 28 October 2026 the board approved an interim dividend of EUR 0.40 per share for fiscal 2026 ($0.45 per ADS at the 23 October 2026 exchange rate), up from EUR 0.15 ($0.17 at the 30 October 2025 rate) for fiscal 2025. The company describes this as consistent with its ambition for a progressive dividend. The Euronext ex-dividend date is 19 November 2026, the record date 20 November and the payment date 23 November 2026. For NYSE ADS holders, the ex-date and record date are both 20 November 2026 and payment is on 16 December 2026.
- **Buyback progress.** As of 26 October 2026 the company had completed $2.6 billion of the $6 billion share buyback programme announced on 30 October 2025.

The two most significant transactions after the fiscal 2025 balance-sheet date, the $2.9 billion container-plant stake reacquisition and the BeatBox acquisition, are described above under the current period. The half-year interim financial statements reported no events after 30 June 2026.