Anheuser-Busch InBev SA/NV

Analyst thesis

Our recommendation is based on:

• Anheuser-Busch InBev SA/NV (ANH) has a high-quality portfolio of global brands, supported by broad geographic diversification and one of the world's largest beer distribution networks.

• The group’s premiumisation strategy and expanding product portfolio position it to respond to evolving consumer preferences, particularly the growing focus on health and moderated alcohol consumption. By broadening its product range, ANH can benefit from changing consumer behaviour rather than be adversely affected by it.

• Margins have recovered steadily despite volatile demand, while earnings quality remains high. This performance is driven by core operational delivery, with minimal impacts from once-off items and non-cash adjustments.

• Rand hedge characteristics (reports in and operates across foreign currency, with assets predominantly located outside of South Africa) provide exposure to global markets and a degree of protection against adverse movements in the local economy and rand depreciation. The key risk is that a stronger rand may impact reported performance and dividends when translated into local currency.

• NTM P:E levels are at a 4% and 12% discount to the five- and 10-year averages, respectively. Considering year-to-date performance and anticipated medium-term growth, we view ANH as fairly priced on a risk-adjusted, scenario-weighted basis and recommend a hold.