Analyst Note
| Philip Gorham, CFA, FRM |Anheuser-Busch InBev reported a strong first quarter that beat our estimates on volume and revenue. Margins fell slightly year over year, in line with guidance, but this does not detract from what was a good quarter overall. The president of AB InBev's North America zone, Michel Doukeris, will replace Carlos Brito as CEO on July 1. We have pulled forward our recovery expectations and make no change to our $90 fair value estimate or our wide economic moat rating. Although the shares have recovered somewhat since full-year 2020 results were reported, we still see upside and think margin expansion next year could reassure investors that deleveraging will continue organically.