AB InBev toasts to recovery growth as BEE platform blooms
In SA almost 90% of revenues are now generated through digital channels, the company says, compared to 75% in Peru or 70% in Mexico
24 February 2022 - 11:22
UPDATED 24 February 2022 - 19:03
byKarl Gernetzky and MICHELLE GUMEDE
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Anheuser-Busch InBev (AB InBev), the owner of global brands such as Budweiser, Corona and Stella Artois, reported an expanded market share in SA after experiencing strong double-digit volumes in 2021 driven by digital channel sales.
In its full-year results for 2021, the multinational company reported global revenue had jumped over 15% to $54.3bn for 2021, while consolidated volumes grew by 9.6% driven by a recovery year on year as the Covid-19 pandemic negatively affected its volumes in 2020.
The easing of Covid-19 lockdowns boosted performance and significant gains were made from price hikes and a consumer shift towards its higher-priced “premium” brands, whose revenues grew by more than 20%. While its e-commerce platform sales gained traction.
In response to increasing globalisation and digitalisation of trade and business operations, the world’s largest brewer moved to diversify revenues with a focus on online sales.
Locally, where the company valued at over R1.6-trillion on the JSE is championed by the iconic Carling Black Label brand, it said the adoption of the BEES platform — a digital ordering platform that connects retailers, bars and restaurant owners with wholesalers — had bolstered sales.
In SA, almost 90% of revenues are now generated through digital channels, the company said, compared with 75% in Peru or 70% in Mexico.
In fourth quarter 2021, core brand Carling Black Label grew by over 20%.
“Strong underlying consumer demand for our products resulted in market share expansion in both beer and total alcohol versus pre-pandemic levels,” the company said in a statement, reflecting strong underlying demand for its products, including the premium and Beyond Beer segments, which both delivered double-digit growth.
CEO Michel Doukeris said the company was well on its way to becoming a tech-first fast-moving consumer goods (FMCG) company as BEES was now live in 16 markets with further expansion ahead in 2022.
“Total monthly active users more than doubled this year,” said Doukeris in an investor presentation.
“This proves that the product has performance and delivers a great experience for our customers. They use BEES because it’s convenient and empowers them to have better visibility over their business,” he said, adding that it was a win-win for customers and the company.
In the financial year, the base of its proprietary BEES platform reached 2.5-million users, with over 50% of revenue now generated through digital platforms. The company said BEES captured $20bn in gross merchandise value with over 78-million orders placed — a greater than six times increase versus 2020 — as usage, adoption and availability accelerated.
“We have built a vibrant ecosystem with more than 2-billion consumers and 6-million customers, generating over 10-million weekly transactions,” Doukeris said.
The company was upbeat about its performance in the rest of Africa where it experienced an improving operating environment and strong consumer demand for its brands. This was evident particularly in Nigeria where volumes outperformed the industry in 2021, despite supply chain constraints.
In Europe, the Middle East and Africa (EMEA) total volumes increased 14.2% in the year, with the outlook positive.
The world’s largest brewer said a recovery in demand in key markets, including SA, helped it deliver core profit growth towards the top end of management’s expectations in 2021.
Normalised earnings before interest, taxation, depreciation and amortisation (ebitda), or core profit, grew 11.8% to $19.2bn (R292bn) in the brewer’s year to end-December, in line with management’s guidance of growth of between 10% and 12%.
Competitors Heineken and Carlsberg have in recent weeks sounded the alarm over the impact of cost inflation, warning it could curb beer consumption.
The company, which operates in five geographic regions of North America, Middle America, South America, EMEA and the Asia Pacific, has a primary listing in Belgium, with secondary listings on the Mexican exchange and the JSE.
About $10bn in goodwill is connected to the SA operation, which represents about 8% of the group’s goodwill (a measure of the value of a business in terms of its reputation with customers).
AB InBev was listed on the JSE in 2016 when it completed its $122bn takeover of SABMiller.
The group is proposing a 50 euro cent dividend, about a €1bn (R17bn) payout.
In early trade, the group’s shares were down 0.22% at R949.15, though there was general pressure on equity markets. The share price fell 4.27% to R910.61 on Thursday, having fallen 13% over the past two years.
Update: February 24 2022 This story has been updated with additional information.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
AB InBev toasts to recovery growth as BEE platform blooms
In SA almost 90% of revenues are now generated through digital channels, the company says, compared to 75% in Peru or 70% in Mexico
Anheuser-Busch InBev (AB InBev), the owner of global brands such as Budweiser, Corona and Stella Artois, reported an expanded market share in SA after experiencing strong double-digit volumes in 2021 driven by digital channel sales.
In its full-year results for 2021, the multinational company reported global revenue had jumped over 15% to $54.3bn for 2021, while consolidated volumes grew by 9.6% driven by a recovery year on year as the Covid-19 pandemic negatively affected its volumes in 2020.
The easing of Covid-19 lockdowns boosted performance and significant gains were made from price hikes and a consumer shift towards its higher-priced “premium” brands, whose revenues grew by more than 20%. While its e-commerce platform sales gained traction.
In response to increasing globalisation and digitalisation of trade and business operations, the world’s largest brewer moved to diversify revenues with a focus on online sales.
Locally, where the company valued at over R1.6-trillion on the JSE is championed by the iconic Carling Black Label brand, it said the adoption of the BEES platform — a digital ordering platform that connects retailers, bars and restaurant owners with wholesalers — had bolstered sales.
In SA, almost 90% of revenues are now generated through digital channels, the company said, compared with 75% in Peru or 70% in Mexico.
In fourth quarter 2021, core brand Carling Black Label grew by over 20%.
“Strong underlying consumer demand for our products resulted in market share expansion in both beer and total alcohol versus pre-pandemic levels,” the company said in a statement, reflecting strong underlying demand for its products, including the premium and Beyond Beer segments, which both delivered double-digit growth.
CEO Michel Doukeris said the company was well on its way to becoming a tech-first fast-moving consumer goods (FMCG) company as BEES was now live in 16 markets with further expansion ahead in 2022.
“Total monthly active users more than doubled this year,” said Doukeris in an investor presentation.
“This proves that the product has performance and delivers a great experience for our customers. They use BEES because it’s convenient and empowers them to have better visibility over their business,” he said, adding that it was a win-win for customers and the company.
In the financial year, the base of its proprietary BEES platform reached 2.5-million users, with over 50% of revenue now generated through digital platforms. The company said BEES captured $20bn in gross merchandise value with over 78-million orders placed — a greater than six times increase versus 2020 — as usage, adoption and availability accelerated.
“We have built a vibrant ecosystem with more than 2-billion consumers and 6-million customers, generating over 10-million weekly transactions,” Doukeris said.
The company was upbeat about its performance in the rest of Africa where it experienced an improving operating environment and strong consumer demand for its brands. This was evident particularly in Nigeria where volumes outperformed the industry in 2021, despite supply chain constraints.
In Europe, the Middle East and Africa (EMEA) total volumes increased 14.2% in the year, with the outlook positive.
The world’s largest brewer said a recovery in demand in key markets, including SA, helped it deliver core profit growth towards the top end of management’s expectations in 2021.
Normalised earnings before interest, taxation, depreciation and amortisation (ebitda), or core profit, grew 11.8% to $19.2bn (R292bn) in the brewer’s year to end-December, in line with management’s guidance of growth of between 10% and 12%.
Competitors Heineken and Carlsberg have in recent weeks sounded the alarm over the impact of cost inflation, warning it could curb beer consumption.
The company, which operates in five geographic regions of North America, Middle America, South America, EMEA and the Asia Pacific, has a primary listing in Belgium, with secondary listings on the Mexican exchange and the JSE.
About $10bn in goodwill is connected to the SA operation, which represents about 8% of the group’s goodwill (a measure of the value of a business in terms of its reputation with customers).
AB InBev was listed on the JSE in 2016 when it completed its $122bn takeover of SABMiller.
The group is proposing a 50 euro cent dividend, about a €1bn (R17bn) payout.
In early trade, the group’s shares were down 0.22% at R949.15, though there was general pressure on equity markets. The share price fell 4.27% to R910.61 on Thursday, having fallen 13% over the past two years.
Update: February 24 2022
This story has been updated with additional information.
gernetzkyk@businesslive.co.za
gumedemi@businesslive.co.za
EDITOR’S NOTE: Pouring a cold one to calm the nerves
Skimming the froth off the top
AB InBev bets on new barley variants to boost African beer-making capacity
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