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AB InBev’s Production Volume Breakdown By Region

AB InBev’s Stella Artois Brewery. Source: Flickr

Anheuser-Busch InBev or AB InBev is a publicly-traded company specializing in beverages, beers in particular.

Its main listing is in Europe, Leuven, Belgium (Euronext: ABI), with secondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges.

Besides, AB InBev also has American Depository Receipts on the New York Stock Exchange (NYSE: BUD).

AB InBev is one of the largest beer brewers in the world, with operations spanning 5 regions: North America, Middle Americas, South America, EMEA and Asia Pacific.

This article covers AB InBev’s all beverages volume production, including beer, alcoholic beverages, soft drinks and energy drinks (non-alcoholic).

Additionally, this article also breaks down AB InBev’s volume production into regional figures.

Other than volume production figures, we also get into AB InBev’s production growth rates on a worldwide as well as regional basis.

Let’s go take a look!

Worldwide Production Volumes By Year

AB InBev's Worldwide Production Volumes By Year

AB InBev’s Worldwide Production Volumes By Year

* Worldwide production volume data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* 2019 production volume data shown in the chart is slightly higher than the annual figure reported in AB InBev’s 2020 annual report due to restated data triggered by sales of subsidiaries.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

In terms of total production volumes, AB InBev produced a total of 530.6 million hectoliters of beverages in FY2020, representing an annual decline of about 6%.

In FY2019, AB InBev reported a worldwide production volume of 565 million hectoliters compared to a slightly higher volume at 567 million hectoliters recorded in FY2018.

Between 2018 and 2020, AB InBev’s total beverage volumes have been on a decline, with FY2020 being the lowest among the 3 years.

Year to date, AB InBev’s production volumes reached 432.0 million hectoliters, about 12% higher compared to the same period in the prior year.

Production Volumes By Region

AB InBev's Production Volumes By Regions

AB InBev’s Production Volumes By Regions

* Production volumes by region data do not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* North America region includes the U.S. and Canada.
* Middle Americas region includes Mexico, Colombia, Peru, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala, Barbados, Puerto Rico, and Caribbean Islands.
* South America region includes Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay.
* EMEA region includes Europe, the Middle East, and Africa.
* Asia Pacific region includes China, India, South Korea and Vietnam.
* AB InBev sold its Australia subsidiary in 2019 which affects only the Asia Pacific region.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

From the chart, AB InBev produced the biggest beverage volumes in South America, at over 140 million hectoliters per year.

This is followed by the Middle Americas region in which AB InBev produced the 2nd biggest beverage volume, at over 120 million hectoliters per year between FY2018 and FY2020.

AB InBev’s North America operation has been the company’s 3rd largest customer after South America and Middle Americas regions.

Of all the regions, AB InBev’s South America operation has been the only region seeing an increase in production volumes for the period between FY2018 and FY2020.

Other regions such as AB InBev’s North America, Middle Americas, EMEA and Asia Pacific have all been declining in terms of total beverage production volumes between FY2018 and FY2020.

AB InBev’s Asia Pacific operation saw its production volumes declined the most, from more than 100 million hectoliters recorded in FY2018 to only 80 million hectoliters recorded in FY2020.

Production Volumes Annual Growth Rates

AB InBev's Production Volumes Growth Rates

AB InBev’s Production Volumes Growth Rates

* Production volumes growth rates are computed by the author based on AB InBev’s production volumes by region data obtained from the company’s earnings releases.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

On a worldwide basis, AB InBev’s total production volume remained flat in FY2019 but declined by 6% year over year in FY2020.

On the bright side, AB InBev’s South America region reported positive yearly growth rates of 3% and 3.3% in FY2019 and FY2020, respectively.

AB InBev experienced the worst production volume decline in the Asia Pacific region in FY2019 and FY2020, at 7% and 16%, respectively.

Similarly, ABI’s production volume in the EMEA region also plunged by a double-digit at 11% in fiscal 2020 from the prior year.

In short, AB InBev saw its production volume being slashed significantly in most regions in the world in fiscal 2020.

Worldwide Production Volumes By Quarter

AB InBev's Worldwide Production Volumes By Quarter

AB InBev’s Worldwide Production Volumes By Quarter

* Prior year data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* Worldwide production volume data shown in the chart above is presented on a TTM basis.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

The TTM or trailing 12-month plot above clearly shows that AB InBev’s worldwide production volumes had significantly declined in the 1st half of FY2020.

However, going into fiscal 2021, AB InBev’s worldwide production volumes have significantly recovered, reaching as much as 576 million hectoliters in fiscal 3Q 2021 on a TTM basis.

ABI’s 3Q 2021 result represents a year-on-year growth rate of 9%.

Moreover, AB InBev’s latest result has even exceeded its historical highs, indicating that the firm’s total beverage production has not only fully recovered but also surpassed the pre-COVID results.

North America Production Volumes By Quarter

AB InBev's North America Production Volumes By Quarter

AB InBev’s North America Production Volumes By Quarter

* Prior year data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* North America production volume data shown in the chart above is presented on a TTM basis.
* North America region includes the U.S. and Canada.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

While ABI’s worldwide production volume has significantly recovered in fiscal 2021, we are not seeing the same trend happening in North America.

According to the chart, AB InBev had slowly increased its beverage production volume in the North America region in fiscal 2021 but the TTM figure declined slightly in Q3 2021, indicating that the recovery in this segment may have hit a speedbump.

As of fiscal 3Q 2021, ABI’s production volume in North America reached 106.7 million hectoliters, down 0.3% from a year ago.

At this figure, AB InBev’s North America production volume was still way below their historical highs reported in prior years.

Middle Americas Production Volumes By Quarter

AB InBev's Middle Americas Production Volumes By Quarter

AB InBev’s Middle Americas Production Volumes By Quarter

* Prior year data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* Middle Americas production volume data shown in the chart above is presented on a TTM basis.
* Middle Americas region includes Mexico, Colombia, Peru, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala, Barbados, Puerto Rico, and Caribbean Islands.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

While ABI’s production volumes in North America have only recovered modestly, it was a totally different story in Middle Americas.

As seen in the chart above, AB InBev’s beverage production volume in the Middle Americas region came in at a record high of 140 million hectoliters as of fiscal 3Q 2021.

ABI’s Middle Americas latest result represents a growth rate of 17% year-over-year.

Similar to the worldwide production figure, AB InBev produced an even higher volume in the Middle Americas than that of pre-COVID periods.

Also, the Middle Americas region has been ABI’s second-biggest market in terms of volume production since fiscal 2018.

South America Production Volumes By Quarter

AB InBev's South America Production Volumes By Quarter

AB InBev’s South America Production Volumes By Quarter

* Prior year data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* South America production volume data shown in the chart above is presented on a TTM basis.
* South America region includes Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

AB InBev seems to be doing reasonably well in South America even during the height of the COVID outbreak in 2020 as seen in the chart above.

Accordingly, AB InBev’s production volume in South America has been on a rise since fiscal 2018, totaling as much as 156.5 million hectoliters as of fiscal Q3 2021 on a TTM basis.

Moreover, AB InBev’s Q3 2021 figure was at a record high, up 11.5% from a year ago.

On a side note, the South America region has been the biggest market for AB InBev by production volume in the last 4 years.

In short, ABI’s production volume has only been minimally impacted by the COVID-19 outbreak in the South America region and was at a record high as of fiscal 2021.

EMEA Production Volumes By Quarter

AB InBev's EMEA Production Volumes By Quarter

AB InBev’s EMEA Production Volumes By Quarter

* Prior year data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* EMEA production volume data shown in the chart above is presented on a TTM basis.
* EMEA region includes Europe, the Middle East, and Africa.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

AB InBev saw its production volume recovering significantly in Europe, Middle East and Africa (EMEA) in fiscal 2021.

As of fiscal 3Q 2021, ABI produced nearly 85 million hectoliters of beverages in the EMEA region on a TTM basis, up 9% year-on-year.

Again, according to the chart, AB InBev’s production volume in EMEA in fiscal 2021 has already returned to pre-COVID levels, illustrating the recovery that has played out for the company in this region.

Asia Pacific Production Volumes By Quarter

AB InBev's Asia Pacific Production Volumes By Quarter

AB InBev’s Asia Pacific Production Volumes By Quarter

* Prior year data does not come from restated results triggered by accounting rules changes and sales of subsidiaries.
* Asia Pacific production volume data shown in the chart above is presented on a TTM basis.
* Asia Pacific region includes China, India, South Korea and Vietnam.
* ABI’s fiscal year begins on Jan 1 and ends on Dec 31.

The Asia Pacific has been ABI’s one of the smallest market segments by production volume.

While AB InBev’s recovery has played out in most segments in the world, it has not been the case in the Asia Pacific region as shown in the chart above.

For one, ABI’s production volume has only grown modestly in fiscal 2021 in the Asia Pacific.

As of fiscal 3Q 2021, ABI produced about 87 million hectoliters of beverages in the Asia Pacific on a TTM basis, up only 6% from a year ago.

Also, AB InBev has divested its Australia operation in 2019 and this may have led to the dramatic volume fluctuation in the Asia Pacific region.

Aside from the divestment, AB InBev’s operation also had been severely impacted by the pandemic in early 2020, especially in China.

The adverse impact of the COVID-19 pandemic, coupled with the divestment of its Australian operations, has dramatically reduced ABI’s production volume in the Asia Pacific.

Conclusion

To recap, AB InBev’s worldwide production volume has been on a rise in the post-COVID period, indicating the recovery that has been playing out for the company.

As of fiscal 3Q 2021, ABI’s worldwide production volume came in at 576.5 million hectoliters, a record high and also beating its pre-COVID results.

When we looked at ABI’s volume production breakdown by region, the company’s South America operation has been the largest, producing 156.5 million hectoliters in fiscal Q3 2021 on a TTM basis, also a record high for this region.

While AB InBev’s production volume has recovered in most of the regions in the world, the firm’s operation in North America has declined slightly in fiscal Q3 2021, down less than 1% from a year ago.

The North America region was the only segment that saw its production volume decreasing in fiscal Q3 2021 on a TTM basis.

However, AB InBev’s overall results have been quite impressive in fiscal 2021 as the recovery momentum has been pushing on.

References and Credits

1. Financial figures in all charts above were obtained and referenced from AB InBev’s annual and quarterly statements available in AB InBev Earnings Releases.

2. Featured image was used under Creative Common Licenses and obtained from toyohara and VISITFLANDERS.

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Disclosure

The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.

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