AB InBev Earnings: Encouraging Results Despite Weak Performance in China

We maintain our EUR 83/$90 fair value estimate for wide-moat Anheuser-Busch InBev after the firm reported fourth-quarter and full-year results in line with our estimates. We were most impressed by full-year growth of 4.3% in revenue per hectoliter against a weak consumer environment in key markets. Full-year normalized EBITDA growth was 8.2%, slightly ahead of guidance. For 2025, management expects organic EBITDA growth consistent with its medium-term target of 4%-8%. We think this is achievable and expect an improving environment over 2025 to provide a tailwind to results. Even with the shares rising 8% on Feb. 26 following the announcement, we continue to view them as undervalued.