AB InBev

Welcome to AB InBev's third quarter 2026 earnings conference call and webcast. Hosting the call today from AB InBev are Mr. Michel Doukeris, Chief Executive Officer, and Mr. Fernando Tennenbaum, Chief Financial Officer. To access the slides accompanying today's call, please visit AB InBev's website at www.ab-inbev.com and click on the Investors tab and the Reports and Results Center page. Today's webcast will be available for on-demand playback later today. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star 1 on your touch-tone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. If you should require operator assistance, please press star 0. Some of the information provided during the conference call may contain statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. It is possible that AB InBev's actual results and financial condition may differ possibly materially from the anticipated results and financial condition indicated in these forward-looking statements. For discussion of some of the risks and important factors that could affect AB InBev's future results, see Risk Factors in the company's latest annual report on Form 20F filed with the Securities and Exchange Commission on March 3, 2026. AB InBev assumes no obligation to update or revise any forward-looking information provided during the conference call and shall not be liable for any action taken in reliance upon such information. It is now my pleasure to turn the floor over to Mr. Michel Doukeris.

Thank you and welcome everyone to our third quarter 2026 earnings call. Today, Fernando and I will take you through our operating highlights and provide you with an update on the progress we have made in executing our strategic priorities. After that, we'll be happy to answer your questions. Let's start with the key highlights. The momentum of our business continued in the third quarter. Consistent execution of our strategy enabled us to deliver solid top and bottom line performance, while investing in our brands and capabilities to fuel future growth. Volumes grew for a third consecutive quarter, with market share growth globally and record high third quarter volumes in 15 markets. including Colombia, Peru, Ecuador, South Africa, India and Dominican Republic amongst others. Revenue increased by 4.9% with solid revenue per hectolitre growth of 4.2%. Underlying EPS increased by 22% to reach $1.21. We stepped up sales and marketing investments to activate key mega platforms this quarter, strengthening our brand power and supporting increased participation with our portfolio. Our performance was driven by our replicable growth drivers. We've continued momentum across our mega brands, non-alcohol beer and beyond beer. These marketplaces continue to scale, with GMV increasing by 45% to reach $1.4 billion. Given our strong balance sheet and increased capital allocation flexibility, the Board has approved an entering dividend of €0.40 per share. Turning to our operating performance. Total volumes grew by 0.4% in the third quarter. led by growth in our soft drinks business. Beer volumes were flattish as growth in two-thirds of our markets was offset by a challenging industry in China. Our best-in-class revenue management capabilities, combined with positive mixed contribution from our mega brands, delivered a revenue per hectolitre increase of 4.2%. EBITDA increased by 3.9% with flattish margins, as higher sales and market investments and commodity headwinds were partially offset by disciplined revenue and cost management. U.S. dollar EBITDA increased by 6.5% in the third quarter and by 10% year-to-date. Abbott increased by 6% and underlying PS grew by 22% as we continue to optimize the business and drove operating leverage through the P&L. Our geographic footprint and global scale continue to enable us to deliver consistent results across different operating environments. Our footprint is both well diversified and balanced. With around 70% of our EBITDA generated in emerging and developing markets, we are well positioned to capture future industry growth with a mix of currencies. Now, let's review our key regional highlights, starting with North America. In the US, our portfolio momentum continued, with share gains in both beer and beyond beer. We have gained a share of total alcohol for 10 consecutive quarters and are the number one shargainer year to date. Our beer performance was led by Michel Aboultra and Bush Light, which were the top two volume shargainers in the industry. Our Beyond Beer portfolio continued to expand our total addressable market and delivered revenue growth in the low teens, led by Cutwater and Neutro. Now, let's turn to Middle Americas. In Mexico, market share gain and margin expansion drove mid-single-digit volume growth and double-digit bottom-line growth. We grew revenue in mainstream, premium, non-alcohol beer, and beyond beer, and continue to increase our portfolio brand power. In Colombia, record high third quarter volumes drove double digit top and bottom line growth. Volume and revenue grew across all price segments, with our portfolio gaining share of alcohol beverages. In Brazil, market share momentum and volume growth drove a mid single digit top and bottom line increase. Our premium and super-premium beer portfolio led our performance and delivered high-teens volume growth, strengthening our leadership position in the segment. In Europe, market share gains and premiumization drove continued top-line growth. Volumes were flat, estimated to have gained or maintained share in a majority of our key markets. with our performance driven by our mega brands and non-alcohol beer. In South Africa, record high volumes and premiumization drove high single digit top line growth. Our premium beer portfolio led our performance, delivering mid-thirds volume growth. Now, moving to APEC. In China, revenue and volumes declined by 16.8%. as we underperformed a challenging industry. We estimate the industry declined by low things in our footprint, impacted by abnormal weather and continued weakness in the on-premise channel. While our overall results remained below potential, we made progress in areas of strategic focus. We continued to invest in our mega brands, innovations, and strengthen Our portfolio brand power. Our in-home channel market share trend improved versus last year, supported by continued momentum in our core plus and super premium brands and growth in the O2O channel. There is more work to do and we are investing to improve our execution and rebalance our portfolio towards growing segments, channels, and geographies. Let's now turn to our strategic pillars, starting with Lead and Grow the category. Our mega brands continue to drive profitable growth across our markets, with net revenue increasing by 7.7% during the quarter. Corona continues to drive premiumization, growing revenue by 20% outside of Mexico and growing volumes by double digits in 37 markets. The combination of our mega brands and platforms is a powerful opportunity to connect with consumers through key moments of culture and celebration. Following successful activations in the first nine months of the year, we have a strong lineup for Q4 and into 2027. These mega platforms, including our partnerships with Live Nation and Netflix, are placing beer and our brands at the center of culturally relevant moments for consumers. Our strategic investments strengthened the connection with consumers and supported a continued increase in our portfolio brand power. Consistent execution of our category expansion levers drove increased consumer participation with our portfolio this quarter, with growth across our core Premium, Balance Choices, and Beyond Beer Brands. In non-alcohol beer, our portfolio outperformed the industry and delivered a 35% revenue increase led by Corona Zero and Michelob Ultra Zero. With an estimated 60% of the volume coming from new occasions and new consumers, No alcohol beer is an opportunity to develop the category and drive incremental volume growth. Let's now turn to our second strategic pillar, digitize and monetize our ecosystem. In the third quarter, Biz captured $15.9 billion in gross merchandising value, a 12% increase versus last year. Biz marketplace continued to scale. with GMV from third-party products increasing by 45% versus last year to reach $1.4 billion. Our digital D2C business is growing and enabling us to further monetize our ecosystem. Our digital platforms served 13 million consumers and generated $158 million in revenue. We are also commercializing third-party products on our D2C platforms and now have a growing marketplace with annualized GMV of $200 million. With that, I would like to hand it over to Fernando to discuss the third pillar of our strategy, optimize our business.

Thank you, Michel. I'll take a few minutes to discuss the progress we have made on three areas in optimizing our business.