Anheuser-Busch InBev’s global revenue reached $54.3 billion in 2021, the company reported today during its full-year and Q4 2021 earnings report. A-B’s worldwide revenue increased +15.6%, as revenue per hectoliter increased +5.5%.
CEO Michel Doukeris noted that the world’s largest beer manufacturer’s volume hit an “all time high” in 2021, increasing +9.6% for full-year 2021, to nearly 581.7 million hectoliters (495 million barrels).
“The taste of this all-time high volume is very sweet,” he said during the call.
A-B’s own beer volumes for the year increased +9.7% to nearly 508.7 million hectoliters (nearly 433.5 million barrels), while non-beer volumes increased +8.7%, to 69.6 million hectoliters (59.3 million barrels).
A-B’s global brands — Budweiser, Stella Artois and Corona (outside of the U.S. market) — combined to increase revenue outside of their core markets +22.9% for the full year, and +23.5% in the fourth quarter.
The company reported EBITDA of $19.2 billion with organic EBITDA growth of +11.8%. Doukeris noted that A-B’s net debt to EBITDA ratio was below 4.0x for the first time since the Megabrew merger with SABMiller in 2016. That ratio now stands at 3.96x, as the company reduced its gross debt load by $10 billion over the last 12 months and $34 billion since 2016.
Notably, more than 50% of A-B’s revenue came through its business-to-business (B2B) digital platforms, which Doukeris called a “landmark” number. The BEES digital ordering platform, which is now operational in 16 markets, including the U.S., boasts 2.5 million users. The company also generated nearly $1.5 billion in revenues from its direct-to-consumer initiatives in fiscal year 2021.
In the fourth quarter, A-B generated +12.1% revenue growth, as revenue per hectoliter increased +8.1%. A-B’s global volume in the fourth quarter increased +3.6%, to nearly 149.7 million hectoliters (more than 127.5 million barrels).
U.S. Depletions -2.3%, Shipments ‘Flattish’ in 2021
In the U.S., 2021 marked the third consecutive year of top-line growth for A-B InBev, Doukeris said. Revenue increased +3.4% for full year 2021, as revenue per hectoliter increased +3.3% for full-year 2021.
Depletions (sales to retailers) declined -2.3% for the year, while shipments (sales to wholesalers) were “flattish as inventories normalized following pandemic related volatility” during the year. Q4 shipments increased +0.6%, while depletions declined -1.8%, which the company attributed to “a weaker industry in segments where we over-index, particularly mainstream and value.”
Across the North America Zone, the company produced 107 million hectoliters (nearly 91.2 million barrels) of product, generated $16.3 billion in revenue and $6.1 billion in EBITDA. Gross profit for the year increased +14.3%, to $31.2 billion.
A-B reported high-single-digit volume growth for its “above core” portfolio for the year, which the company said accounts for more than 30% of its revenue. The company offered a few highlights:
- Michelob Ultra, the second largest beer brand by volume in the U.S., increased depletions double-digits in 2021;
- A-B’s portfolio of hard seltzer grew 1.7x the overall segment;
- Ready-to-drink canned cocktail brand Cutwater posted triple-digit growth in 2021.
Doukeris said he’s “pleased with the momentum in the U.S.,” as “top-line growth is back in the right direction.” He credited that to rebalancing the company’s portfolio and accelerating growth in segments with run room.
“In structure, the business is in better shape,” he said.
Doukeris noted that fall disruptions in the supply chain led to lower wholesaler inventories. Supply has begun to normalize, so he expects a “much better summer in terms of product availability.” He added that the return of on-trade business has relieved some of the strain on the company’s demand for glass and can packaging.
Highlights from A-B’s 2021 Annual Report
- A-B’s mainstream portfolio generated +10% revenue growth in 2021.
- A-B’s non-alcoholic beer portfolio generated double-digit revenue growth, led by Budweiser Zero and Stella 0.0.
- A-B’s premium and super premium portfolios generated more than 20% revenue growth in 2021, and now make up about one-third of the company’s total revenue.
- A-B’s beyond beer business grew +20%, generating $1.6 billion in revenue in 2021.
- New A-B offerings generated more than $5 billion in revenue, accounting for about 10% of the company’s total revenues.
2022 Outlook
Looking ahead to fiscal year 2022, the company said it expects its EBITDA to grow in the medium term between 4-8% and “revenue to grow ahead of EBITDA from a healthy combination of volume and price.”
A-B CFO Fernando Tennenbaum noted that the company isn’t providing specific cost per hectoliter guidance. Doukeris added that he expects 2022 “to be very similar to 2021.”
During the pandemic, Doukeris said A-B’s leadership team learned how to adapt and be flexible while “focusing on results.” He pointed to the net revenue per hectoliter growth of 8.1% during Q4 as an example of “how agile the company” has been in dealing with inflationary headwinds.
Asked about price elasticity, Doukeris said it’s too early to judge. However, the stimulus checks given during the pandemic have given consumers the ability “to maintain purchase power” in many markets, he said.
Looking ahead, Doukeris said he sees opportunities with the return of marquee events, such as the Super Bowl and FIFA World Cup. He pointed to a busy Super Bowl week as on-trade volume increased +35% week-over-week compared to the previous year.
“I saw people in the streets, people in the stadium and high consumption,” Doukeris shared, adding the return of on-trade business in Europe, the summer selling season and the World Cup present more opportunities for driving consumer demand and activating A-B’s brands.
A-B Records $258 Million Drinkworks Impairment Charge in Q4
A-B recorded a $258 million impairment charge during Q4 related to the Drinkworks joint venture with Keurig Dr. Pepper. The company shelved the at-home cocktail maker in December 2021, and the assets of its “like new alcoholic beverage laboratory” are now listed as part of an auction that is set to go live on March 2 and conclude on March 9. Additionally, the assets of Drinkworks’ “state of the art 2017 home beverage production plant” in Williston, Vermont, is also on the auction block, slated to begin March 22 and run through March 29.
A-B Aims for Net Zero Status by 2040
Near the top of the call, Doukeris laid out the company’s Environmental, Social and Governance (ESG) agenda, which is built around three themes: natural, inclusive and local. A-B’s ESG ambitions include achieving net zero status by 2040, Doukeris said.