AB InBev Preview: uninspiring 3Q expected
We lowered our forecasts for 3Q25 and the remainder of the year after signals of weak trading in markets like the US, China and Brazil. ABI's organic volume growth has been negative in 2023 and 2024 and now we also bank on a negative 2025 number. Despite lower growth, we still see ABI as the undisputed leader in the beer space, with leading market shares in many markets, ongoing digitization and premiumization trends allowing to generate healthy free cash flows. We believe the lower top line growth is already well reflected in the share price and we believe valuation is attractive with EV/EBITDA26e at 8.2x and FCF yield26e at 9.1%, which prompts us to reiterate our BUY rating and € 65 TP.Anheuser-Busch Inbev is engaged in the brewing of beer. Co. manages a portfolio of well over 200 brands that includes brands such as Budweiser, Stella Artois and Beck's; multi-country brands such as Leffe and Hoegaarden; and other brands such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske and Jupiler. Co. also produces and distributes soft drinks, particularly in Latin America. Co.'s operations are organized along seven business segments: North America, Mexico, Latin America North, Latin America South, Europe, Asia Pacific and Global Export & Holding Companies.
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