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Anheuser-Busch InBev reports fourth quarter and full year 2019 results Short Form Announcement
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
ISIN: BE0974293251
(“AB InBev” or the “Company”)
Anheuser-Busch InBev reports fourth quarter and full year 2019 results
Short Form Announcement
KEY FIGURES
• Revenue: Revenue grew by 4.3% in FY19 and by 2.5% in 4Q19, with revenue per hl growth of 3.1% in FY19 and
0.9% in 4Q19. Healthy volume growth was enhanced by global premiumization and revenue management initiatives,
although revenue per hl growth decelerated as a result of advances in our smart affordability strategy.
• Volume: Total volumes grew by 1.1% in FY19, with own beer volumes up 0.8% and non-beer volumes up 4.8%. In
4Q19, total volumes increased by 1.6%, with own beer volumes up 0.8% and non-beer volumes up 8.0%.
• Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona, grew by 5.2%
in FY19 and by 2.1% in 4Q19. Outside of their respective home markets, the global brands grew by 8.0% in FY19
and by 3.9% in 4Q19.
• Cost of Sales (CoS): CoS increased by 7.4% in FY19 and by 5.9% on a per hl basis, driven by significant commodity
and transactional currency headwinds. In 4Q19, CoS increased by 9.1% and by 7.3% on a per hl basis.
• EBITDA: EBITDA increased by 2.7% in FY19 to 21 078 million USD as top-line growth and continued cost discipline
enhanced by synergy capture was partially offset by elevated cost of sales per hl. EBITDA margin contracted by 65
bps to 40.3%. In 4Q19, EBITDA declined by 5.5% to 5 343 million USD with margin contraction of 336 bps to 40.1%.
• Net finance results: Net finance costs (excluding non-recurring net finance results) were 4 355 million USD in FY19
compared to 6 844 million USD in FY18. The decrease was predominantly due to a mark-to-market gain of 898
million USD in FY19 linked to the hedging of our share-based payment programs, compared to a loss of 1 774
million USD in FY18, resulting in a swing of 2 672 million USD. In 4Q19, net finance costs were 2 309 million USD
compared to 2 162 million USD in 4Q18.
• Income taxes: Normalized effective tax rate (ETR) decreased to 23.0% in FY19 from 27.5% in FY18 and decreased
to 24.5% in 4Q19 from 33.0% in 4Q18. Excluding the impact of gains and losses relating to the hedging of our
share-based payment programs, our normalized ETR was 24.9% in FY19 as compared to 23.4% in FY18 and 17.2%
in 4Q19 as compared to 24.7% in 4Q18.
• Profit: Normalized profit attributable to equity holders of AB InBev was 8 086 million USD in FY19 versus 6 248
million USD in FY18 and was 962 million USD in 4Q19 versus 1 405 million USD in 4Q18. Underlying profit
(normalized profit attributable to equity holders of AB InBev excluding mark-to-market gains and losses linked to the
hedging of our share-based payment programs and the impact of hyperinflation) was 7 196 million USD in FY19 as
compared to 8 099 million USD in FY18 and was 1 729 million USD in 4Q19 as compared to 2 306 million USD in
4Q18.
• Earnings per share (EPS): Normalized EPS in FY19 was 4.08 USD, an increase from 3.16 USD in FY18 and 0.48
USD in 4Q19, a decrease from 0.71 USD in 4Q18. Underlying EPS (normalized EPS excluding mark-to-market
gains and losses linked to the hedging of our share-based payment programs and the impact of hyperinflation) was
3.63 USD in FY19, a decrease from 4.10 USD in FY18, and 0.87 USD in 4Q19, a decrease from 1.17 USD in 4Q18.
• Dividend: The AB InBev Board proposes a final dividend of 1.00 EUR per share, subject to shareholder approval
at the AGM on 29 April 2020. When combined with the interim dividend of 0.80 EUR per share paid in November
2019, the total dividend for FY19 would be 1.80 EUR per share. A timeline showing the ex-coupon dates, the record
dates, and the payment dates can be found on page 20.
• Hyperinflation: The restatement of 9M19 under hyperinflation using the December purchasing power and closing
rate had a positive impact of 55 million USD on revenue and 30 million USD on Normalized EBITDA on the FY19
reported organic growth. The impact of 9M19 restatement under hyperinflation is excluded from the 4Q19 organic
calculation and identified separately in Annex 2.
• Deleveraging: 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 4.0x for the 12-month period ending 31 December 2019.
• Combination with SAB: In 3Q19, we completed the 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.
• 2019 Full Year Financial Report is available on our website at www.ab-inbev.com.
HEADLINE EARNINGS PER SHARE
Due to the secondary listing of the ordinary shares of AB InBev on the main board of the JSE Limited (JSE) in South
Africa, the Group is required to present headline earnings per share and diluted headline earnings per share, as
alternative measures of earnings per share, calculated in accordance with the circular entitled ‘Headline Earnings’ issued
by the South African Institute of Chartered Accountants, as amended from time to time.
The calculation of headline earnings per share is based on the headline earnings and a weighted average number of
ordinary and restricted shares outstanding (including deferred share instruments and stock lending) per end of the
period, calculated as follows:
FY19 FY18 (Restated)
Net of Net of
taxes taxes
& non- & non-
Gross controlling Gross controlling
Million US dollar amount interests amount interests
Profit attributable to equity holders of AB InBev - 9 171 - 4 370
After tax impairment of goodwill, PP&E and intangible assets 86 49 91 50
After tax net (gain)/loss on disposal of PP&E, intangible and (81) (52) (109) (69)
other assets
Headline earnings 9 168 4 351
Weighted average number of ordinary and restricted shares 1 984 1 975
(million)
Headline earnings per share (US dollar) 4.62 2.20
Weighted average number of ordinary and restricted shares 2 026 2 011
(diluted) (million)
Diluted headline earnings per share (US dollar) 4.53 2.16
DIVIDEND
The board of directors of AB InBev has proposed a final dividend of €1.00 per share (the “Dividend”), subject to obtaining
approval by the shareholders of the Company at the Annual General meeting to be held on Wednesday, 29 April 2020.
When combined with the interim dividend of €0.80 per share paid in November 2019, the total dividend for the financial
year ended 31 December 2019 amounts to €1.80 per share.
The proposed timetable for the Dividend is as follows:
2020
Dividend declaration announcement released on SENS Thursday, 27 February
Annual General Meeting of shareholders to approve the Dividend Wednesday, 29 April
Currency conversion announcement released on SENS (by 11h00 SA time) Monday, 4 May
Last day to trade on Johannesburg Stock Exchange (JSE) to qualify for the Tuesday, 5 May
Dividend
Ex-Dividend on Euronext from commencement of trading on Tuesday, 5 May
Ex-Dividend on JSE from commencement of trading on Wednesday, 6 May
Record date (Euronext) Wednesday, 6 May
Dividend payable (Euronext) Thursday, 7 May
Record date (JSE) Friday, 8 May
Dividend payable (JSE) Monday, 11 May
Additional information required by the JSE Listings Requirements
1. No transfers of shareholdings to and from South Africa will be permitted between Tuesday, 5 May 2020 and Friday,
8 May 2020 (both dates inclusive). No dematerialisation or rematerialisation orders will be permitted between
Wednesday, 6 May 2020 and Friday, 8 May 2020 (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 Thursday, 27 February 2020, being the declaration announcement date of the Dividend, the Company had a
total of 1,977,083,553 shares in issue (excluding treasury shares). The Company held 42,158,420 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.
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
purposes.
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
received.
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.
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:
https://eservices.minfin.fgov.be/mym-api-rest/finform/pdf/2575
The current version of Form N°/NR. 276 Div.-Aut. is available through this link, or through the Belgian Tax authorities’
official website:
https://eservices.minfin.fgov.be/mym-api-rest/finform/pdf/2599
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.
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.
SHORT FORM ANNOUNCEMENT
The consolidated financial statements of AB InBev for the year ended 31 December 2019 have been audited by our
statutory auditors PwC Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL in accordance with International Standards
on Auditing as adopted by the European Union, and they have issued an unqualified audit report on these consolidated
financial statements.
Shareholders should refer to the full audit report for an overview of the audit engagement and for the key audit matters
identified by the group’s statutory auditors during the audit engagement. The annual report containing the auditors’ full
audit report can be accessed at the following link: https://www.ab-inbev.com/investors/annual-reports.html
from close of business today.
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
https://senspdf.jse.co.za/documents/2020/jse/isse/anhe/Q42019.pdf
or 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.
27 February 2020
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: 27-02-2020 08:23:00
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