Our opinion on the current state of AB-INBEV(ANH)

Anheuser-Busch InBev (AB InBev), the world's largest brewer, operates in both developed and emerging markets. Listed on the JSE as ANH, the Brussels Stock Exchange as ABI, and the NYSE as BUD, AB InBev announced its intention to list its Asia-Pacific arm on the Hong Kong Stock Exchange to raise around $10 billion, with proceeds aimed at reducing debt. The company holds notable beer brands such as Budweiser, Stella Artois, Castle, Beck's, and Corona. Following its acquisition of SABMiller, AB InBev is four times larger than its closest competitor, Heineken, leaving limited room for significant acquisitions and requiring the company to focus on organic growth.

For the year ending December 31, 2023, AB InBev reported a 7.8% increase in revenue and earnings per share (EPS) of 305 cents (USD) compared to 303 cents in the prior year. The company noted that in the fourth quarter, normalized EBITDA grew by 6.2% to $4.877 billion, and the EBITDA margin contracted by 2 basis points to 33.7%. For the full year 2023, normalized EBITDA rose by 7% to $19.976 billion, with an EBITDA margin contraction of 23 basis points to 33.6%. In its first quarter update, AB InBev saw revenue increase by 2.6%, with a slight volume decline of 0.6%. The company reported a 5.4% increase in EBITDA with margin expansion and a 16% growth in underlying EPS.

From a private investor's viewpoint, AB InBev remains a massive international blue-chip stock with strong rand-hedge characteristics. With a current P/E ratio of 21.88, the stock appears fully priced. Technically, it had been in a downtrend since listing on the JSE, but a break above the long-term downward trendline occurred on November 4, 2022, at 94,065 cents. Since then, the share price has risen to 117,900 cents.