Anheuser-Busch InBev reports Third Quarter and Nine Months 2019 Results and Declaration of Interim Dividend No. 27
Anheuser-Busch InBev SA/NV
(Incorporated in the Kingdom of Belgium)
Register of Companies Number: 0417.497.106
Euronext Brussels Share Code: ABI
Mexican Stock Exchange Share Code: ANB
NYSE ADS Code: BUD
JSE Share Code: ANH
(“AB InBev” or the “Company”)
Anheuser-Busch InBev reports Third Quarter and Nine Months 2019 Results and
Declaration of Interim Dividend No. 27
1. Key Financial Information of the 2019 Third Quarter and Nine Months Results
• Revenue: Revenue grew by 2.7% in the quarter, with revenue per hl growth of 3.0% as healthy growth from
ongoing premiumization and revenue management initiatives was partially offset by advances in our smart
affordability strategy. In 9M19, revenue grew by 4.8%, with revenue per hl growth of 3.7%.
• Volume: Total volumes decreased by 0.5% in 3Q19, with own beer volumes down 0.9% and non-beer volumes up
4.0%. Solid growth from markets such as Mexico, South Africa and Colombia was more than offset by declines in
China and the US, both primarily driven by shipment phasing impacts. In 9M19, total volumes grew by 1.0%, with
own beer volumes up 0.7% and non-beer volumes up 3.6%.
• Global Brands: In 3Q19, the combined revenues of our three global brands, Budweiser, Stella Artois and Corona,
grew by 4.1% globally and 5.2% outside their respective home markets. In 9M19, the combined revenues of our
global brands grew by 6.4% globally and 9.5% outside their home markets.
• Cost of Sales (CoS): CoS increased by 6.9% in 3Q19 and by 6.7% on a per hl basis driven by significant commodity
and transactional currency headwinds as a result of the timing of our hedges. In 9M19, CoS increased by 6.9% and
by 5.4% on a per hl basis.
• EBITDA: EBITDA was flat in the quarter, with EBITDA margin contraction of 107 bps to 40.2%, as a result of CoS
headwinds and the phasing of sales and marketing investments. In 9M19, EBITDA grew by 5.6% and EBITDA margin
expanded by 29 bps to 40.4%.
• Net finance results: Net finance costs (excluding non-recurring net finance results) were 677 million USD in 3Q19
compared to 1 797 million USD in 3Q18. The improvement was primarily due to a mark-to-market gain of
549 million USD in 3Q19 linked to the hedging of our share-based payment programs, compared to a loss of 616
million USD in 3Q18, resulting in a swing of 1 165 million USD. Net finance costs were 2 047 million USD in 9M19
as compared to 4 682 million USD in 9M18.
• Income taxes: Normalized effective tax rate (ETR) decreased from 24.9% in 3Q18 to 22.6% in 3Q19. Excluding the
impact of gains relating to the hedging of our share-based payment programs, our normalized ETR increased from
19.8% in 3Q18 to 26.8% in 3Q19. Normalized ETR decreased from 25.5% in 9M18 to 22.8% in 9M19 and, excluding
the impact of gains relating to the hedging of our share-based payment programs, our normalized ETR increased
from 22.9% in 9M18 to 27.2% in 9M19.
• Profit: Normalized profit attributable to equity holders of AB InBev was 2 412 million USD in 3Q19 versus 1 517
million USD in 3Q18 and was 7 125 million USD in 9M19 versus 4 843 million USD in 9M18. Underlying profit
(normalized profit attributable to equity holders of AB InBev excluding mark-to-market gains linked to the hedging
of our share-based payment programs and the impact of hyperinflation) was 1 870 million USD in 3Q19 as
compared to 2 190 million USD in 3Q18 and was 5 462 million USD in 9M19 as compared to 5 771 million USD
• Earnings per share (EPS): Normalized EPS in 3Q19 was 1.22 USD, an increase from 0.77 USD in 3Q18, positively
impacted by mark-to-market gains linked to the hedging of our share-based payment programs. Normalized EPS
in 9M19 was 3.59 USD, an increase from 2.45 USD in 9M18. Underlying EPS (normalized EPS excluding mark-to-
market gains linked to the hedging of our share-based payment programs and the impact of hyperinflation) was
0.94 USD in 3Q19, a decrease from 1.11 USD in 3Q18 and was 2.76 USD in 9M19, a decrease from 2.92 USD in
• Interim Dividend: The AB InBev board has approved an interim dividend of 0.80 EUR per share for the fiscal year
• Hyperinflation: The restatement of HY19 under hyperinflation using the September purchasing power and 9M19
closing rate had a negative impact of 57 million USD on revenue and 37 million on Normalized EBITDA on the 9M19
reported organic growth. The impact of HY19 restatement under hyperinflation is excluded from the 3Q19 organic
calculation and identified separately in Annex 1 of the full announcement.
• Deleveraging: After the successful completion of the listing of Budweiser APAC and accounting for the proceeds
expected to be received from the divestment of the Australian operations (while excluding the last 12 months
EBITDA from the Australian operations), our net debt to EBITDA ratio would be below 4x by the end of 2019, one
year earlier than our prior guidance.
• Combination with SAB: We have completed delivery of the 3.2 billion USD synergies and cost savings on a constant
currency basis as of August 2016 resulting from the combination with SAB.
2. Interim Dividend
The board of directors of AB InBev has approved an interim dividend of Euro 0.80 per ordinary share (“the Dividend)
for the fiscal year 2019. The proposed dividend timetable is set out below.
Dividend declaration announcement released on the Stock Exchange News Friday, 25 October
Services of the JSE
Currency conversion announcement released (by 11h00 SA time) Tuesday, 19 November
Last day to trade on the Johannesburg Stock Exchange (JSE) to qualify for the Tuesday, 19 November
Ex-Dividend on Euronext from the commencement of trading on Tuesday, 19 November
Ex-Dividend on the JSE from commencement of trading on Wednesday, 20 November
Record date on Euronext Wednesday 20 November
Dividend payable (Euronext) Thursday, 21 November
Record date on the JSE Friday, 22 November
Dividend payable (SA) Monday, 25 November
3. Additional information required by the JSE Listings Requirements in respect of the Dividend
1. No transfers of shareholdings to and from South Africa will be permitted between Tuesday, 19 November 2019
and Friday, 22 November 2019 (both dates inclusive). No dematerialisation or rematerialisation orders will be
permitted between Wednesday, 20 November 2019 and Friday, 22 November 2019 (both dates inclusive).
2. The gross amount of the Dividend will be subject to a Belgian withholding tax of 30%. Such withholding tax may
be reduced to 15% in terms of the double tax treaty in force between Belgium and South Africa. A rebate of the
additional Belgian withholding tax imposed must be claimed in accordance with the relevant reimbursement
process noted below. The Dividend will also be subject to South African dividends tax at the rate of 20%, unless a
shareholder qualifies for an exemption. Any shareholder who receives a dividend which is subject to South African
dividends tax (i.e. where no exemption is available) will qualify for a 15% reduction in dividends tax. The ultimate
result in such a case is that a dividend will be subject to a reduced Belgian withholding tax rate of 15% and subject
to South African dividends tax at a rate of 5%.
3. At Friday, 25 October 2019, being the declaration announcement date of the Dividend, the Company had a total
of 1,959,983,553 shares in issue (excluding treasury shares). The Company held 59,258,420 ordinary shares in
treasury giving a total issued share capital of 2,019,241,973 shares (of which 1,693,242,156 ordinary shares are
listed and 325,999,817 restricted shares are unlisted).
4. The Dividend will be paid out of the Company’s operating results for 2019, increased with the profits carried over,
without drawing on any capital reserves.
5. The Dividend is payable in South African Rand to shareholders whose shares are held through Central Securities
Participants and brokers traded on the JSE.
4. South African income tax and dividends tax consequences
The Dividend should be regarded as a ‘foreign dividend’ for South African income tax and South African dividends tax
Foreign dividends received in respect of shares which are dual-listed on the JSE are, however, exempt from income
tax. Consequently, no South African income tax should be incurred by the shareholders in respect of the Dividend
The Dividend may, however, be subject to South African dividends tax at 20%. There is though, amongst others, an
exemption from South African dividends tax if the Dividend is paid to a South African resident corporate shareholder.
This exemption operates in a manner similar to other local shares listed on the JSE and the dividends paid in respect
thereof to resident corporate shareholders and retirement funds. Intermediaries may only allow an exemption from
South African dividends tax, provided shareholders have completed and lodged a valid exemption form, which is
obtainable from their intermediary.
5. Belgian withholding tax
The gross amount of the Dividend will as a rule be subject to a Belgian withholding tax of 30%. Such withholding tax
can under certain circumstances be reduced.
Belgian dividend withholding tax can be reduced to 15% pursuant to the Belgian-South African double tax treaty in
force. Such reduced rate can be applied provided that Form N°/NR. 276 Div.-Aut. is filed by the shareholder with the
Bureau Central de Taxation de Bruxelles-Etranger, boulevard du Jardin Botanique 50 boîte 3429, 1000 Brussels,
Belgium (hereinafter the “Central Bureau of Taxation”) before the expiry of a period of five years from January 1st of
the year in which the withholding tax was paid, in which case the differential between the standard withholding tax
rate of 30% and the reduced treaty rate of 15% will be reimbursed.
An explanatory note is available through this link, or through the Belgian Tax authorities’ official website:
The current version of Form N°/NR. 276 Div.-Aut. is available through this link, or through the Belgian Tax authorities’
A Belgian withholding tax exemption is also applicable to dividends paid to South African corporate shareholders that
hold a participation of less than 10% in the capital of AB InBev but with an acquisition value of at least €2.5 million.
This regime is subject to the cumulative conditions that (i) the company is treated as a body corporate for tax purposes
in the meaning of Article 3, 1), d) of the Double Tax Treaty between Belgium and South Africa and has a legal form
considered similar to the ones listed in Annex I, Part A, to the Council Directive 2011/96/EU of 30 November 2011 on
the common system of taxation applicable in the case of parent companies and subsidiaries of different Member
States, as amended by Directive 2014/863/EU of 8 July 2014; (ii) it is subject to corporate income tax or a similar tax
without benefiting from a tax regime that deviates from the ordinary domestic tax regime; (iii) the dividends relate to
AB InBev shares which it has held or will hold in full legal ownership for an uninterrupted period of at least one year;
and (iv) it cannot in principle credit the Belgian withholding tax paid on the AB InBev dividends or obtain a refund
thereof according to the legal provisions in force on December 31 of the year preceding the year of the payment or
attribution of the dividends.
In order to benefit from this reduced withholding tax, the shareholder must provide the Central Bureau of Taxation
with a South African residency certificate confirming that it fulfils the abovementioned conditions and indicating to
what extent the Belgian withholding tax is in principle creditable or reimbursable on the basis of the South African
laws applicable on 31 December of the year preceding the one during which the Dividend is paid or attributed.
6. South African dividends tax rebate in respect of Belgian withholding tax
A rebate must, for South African dividends tax purposes, be deducted from any South African dividends tax payable in
respect of the Dividend (i.e. where no exemption is available). This rebate will be equal to the amount of any Belgian
withholding tax paid in respect of the Dividend, without any right of recovery, and must not exceed the amount of the
South African dividends tax imposed in respect of the Dividend.
The CSDPs and/or brokers, in their capacity as the regulated intermediaries, must obtain proof of any Belgian
withholding tax paid and deducted from the South African tax payable, as above, in the form and manner prescribed
by the South African Revenue Service.
For the avoidance of doubt, the income tax and dividends tax information provided above is only relevant to
shareholders whose shares are held through CSDPs and brokers and are traded on the JSE.
Any shareholder who is in any doubt as to their tax position should seek independent professional advice.
7. Short-form announcement
This short-form announcement is the responsibility of the board of directors of AB InBev and is a summary of the
information in the detailed financial results announcement and does not contain full or complete details. Any
investment decision in relation to the Company’s shares should be based on the full announcement.
The full announcement may be downloaded from
from the Company’s website at www.ab-inbev.com
Copies may be requested from the Company and the Johannesburg office of the Company’s JSE Sponsor at no charge
during business hours for a period of 30 calendar days following the date of this announcement.
25 October 2019
JSE Sponsor: Questco Corporate Advisory Proprietary Limited
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings
on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on
the New York Stock Exchange (NYSE: BUD).
Date: 25/10/2019 09:45:00
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