AB InBev Looks Defensive As It Successfully Pushed Through Significant Price Increases in Q4

The impact of having to pass through extreme levels of inflation was evident in Anheuser-Busch InBev's fourth-quarter and full-year 2022 results, as volume was slightly weaker than we had expected. However, the modest growth in gross profit confirms our thesis that AB InBev is roughly middle of the pack among the consumer product manufacturers in its ability to pass through pricing, and with revenue and operating profit close to our forecasts last year, we are retaining our USD 90 fair value estimate. We continue to think that AB InBev is undervalued and the strong regional scale of the business, particularly in Latin America, makes this a high-quality company.