Half Year 2016 Results
Highlights
Except where otherwise stated, the comments below are based on organic figures and refer to 2Q16 and HY16 versus
the same period of last year. For important notes and disclaimers please refer to page 17.
* Revenue: Revenue grew by 4.0% in the quarter, with strong revenue per hl growth of 5.9%. On a
constant geographic basis, revenue per hl grew by 6.1% driven by growth in our premium brands. In
HY16, revenue grew by 3.6% with revenue per hl growth of 5.4%. On a constant geographic basis
revenue per hl grew by 5.7%
* Volume: Total volumes declined by 1.7% in 2Q16, with our own beer volumes down by 0.8%. The
decline in own beer volumes was driven mainly by weak industry performances in Brazil and
Argentina, partly offset by good results in Mexico and the US. In HY16, total volumes declined by
1.7%, with own beer volumes down by 1.1%
* Global Brands: Combined revenues of our three global brands, Corona, Stella Artois and Budweiser,
grew by 8.4% in 2Q16. This result was led by Corona with growth of 13.0%, driven primarily by
Mexico, the UK, and China. Stella Artois revenues grew by over 9%, driven by the US and Canada.
Budweiser revenues grew by almost 6% with growth coming primarily from China, Brazil and the UK.
In HY16 the combined revenues of our global brands grew by 7.2%
* Cost of Sales (CoS): CoS increased by 0.8% in 2Q16 and by 2.5% on a per hl basis. On a constant
geographic basis, CoS per hl increased by 1.4%. In HY16 CoS grew by 1.3% and by 3.0% on a per hl
basis. On a constant geographic basis, CoS per hl increased by 2.7% in HY16
* EBITDA grew by 4.3% in 2Q16 to 4 011 million USD, with top-line growth being partly offset by
investments behind our brands which was weighted towards the first half of the year in line with our
guidance. EBITDA margin increased marginally to 37.1% in 2Q16. In HY16, EBITDA grew by 3.4%,
with EBITDA margin marginally down
* Net finance results: Net finance costs (excluding non-recurring net finance costs) were 726 million
USD in 2Q16 compared to 554 million USD in 2Q15. This increase was driven primarily by the
additional net interest expenses resulting from the bond issuances in 1Q16, related to the pre-funding
of the proposed SABMiller combination. This increase in net interest expenses was partly offset by
other financial results, which included a favorable mark-to-market adjustment of 444 million USD in
2Q16, linked to the hedging of our share-based payment programs, compared to a loss of 139 million
USD in 2Q15. Net finance costs were 1 945 million USD in HY16 compared to 463 million USD in HY15
* Income taxes: Income tax in 2Q16 was 497 million USD with a normalized effective tax rate (ETR) of
20.5%, compared to an income tax expense of 532 million USD in 2Q15 and a normalized ETR of
17.2%. The normalized ETR was 21.5% in HY16 compared to 17.6% in HY15
* Profit: Normalized profit attributable to equity holders of AB InBev was 1 727 million USD in 2Q16
compared to 1 984 million USD in 2Q15, with organic EBITDA growth more than offset by higher net
finance results and unfavorable currency translation. Normalized profit attributable to equity holders of
AB InBev was 2 571 million USD in HY16, compared to 4 278 million USD in HY15
* Earnings per share: Normalized earnings per share (EPS) decreased to 1.06 USD in 2Q16 from
1.21 USD in 2Q15, and decreased to 1.57 USD in HY16 from 2.61 USD in HY15
* Proposed combination with SABMiller: We have made significant
progress towards obtaining the necessary regulatory clearances for the proposed combination with
SABMiller, including recent approval in the US, and have announced a revised and final offer. It
remains our objective to close the transaction in 2016
* 2016 Half Year Financial Report: The report is available on our website at
www.ab-inbev.com
