AB InBev Earnings: Improved Profitability Outlook Despite Unstable Environment

Wide-moat Anheuser-Busch InBev reported third-quarter 2024 results, which that were in line with our estimates but slightly below consensus. While total volume was down by 2% in the quarter, we remain impressed with the firm’s ability to deliver normalized EBITDA growth, thanks to solid cost management execution. With this, the firm adjusted its 2024 outlook, now expecting EBITDA growth of 6% to 8%, up from 4% to 8%. With our long-term estimates unchanged, we maintain our fair value estimate of EUR 83 per share and continue to view the stock as undervalued.