Anheuser-Busch InBev SA/NV

Welcome to Anheuser-Busch InBev's first quarter 2023 earnings conference call and webcast. Hosting the call today from AB InBev are Mr. Michelle Ducaris, Chief Executive Officer, and Mr. Fernando Tenenbaum, 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 one on your touchtone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. If you should require operator assistance, please press star zero. 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 a 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 20-F filed with the Securities and Exchange Commission on the 17th of March, 2023. 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 Ducaris. Sir, you may begin.

Thank you, Jessi. and welcome everyone to our first quarter 2023 earnings call. It is a great pleasure to be speaking with you all today. Today, Fernando and I will take you through our first quarter operating highlights and provide you with an update on the progress we've made in executing our strategic priorities. After that, we'll be happy to answer your questions. Let's start with our operating performance. Our business momentum continues this quarter, and we are very pleased with our strong performance to start the year. We delivered revenue growth of 13.2%, with volumes up by 0.9%. Revenue per hectolitre increased by 12.4%, driven by price actions across our markets, other revenue management initiatives, and ongoing premiumization. We grew EBITDA by 13.6% with a margin expansion of 13 basis points, despite continued commodity cost headwinds and while increasing sales and marketing investments in our brands. Underlying EPS was 65 US dollar cents, a 8.7% increase versus last year. Our focus on disciplined resource allocation and everyday efficiency continues to enable us to invest for the long term while delivering consistent profitable growth. We delivered broad-based growth this quarter with both top and bottom line increases in all five of our regions. Revenue increased in 80% of our markets with volume growth in over 60%. Our diverse geographic footprint provides a unique combination of growth and reliable cash flow generation, positioning us well to deliver superior low-term value creation. Now, I'll take a few minutes to walk you through the operational highlights for the quarter from our key regions, starting with North America. In the U.S., the beer industry remains resilient. with industry volume trends improving sequentially and U.S. dollar sales up 3%. Our business delivered another quarter of top line growth in stable EBITDA, despite the elevated cost environment. Our above-quarter portfolio continued to gain share of segment, growing volumes by mid-single digits. Since we are talking about the U.S., let me share some thoughts on the Bud Light situation and put it in the context of our global company. Let me start by clarifying a few facts. This was the result of one camp. It was not made for production or sale to general public. It was one post, not a formal campaign or advertisement. Bud Light campaign is easy to drink, easy to enjoy. We should address the situation through the lens of three areas that are very important.

Our people, our consumers, and beer. Let's start with our people.