AB InBev Revenue Breakdown, Profit And Margin By Region

AB InBev’s beer. Pixabay Image.

This article presents Anheuser-Busch InBev or AB InBev (ABI)‘s revenue breakdown by region or by segment.

AB InBev’s regional revenue consists of regions which include North America, Middle Americas, South America, EMEA, and the Asia Pacific.

The North American region includes countries such as the U.S. and Canada.

The Middle Americas region includes countries such as Mexico, Colombia, Peru, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala, Barbados, Puerto Rico, and Caribbean Islands.

The South America region includes countries such as Argentina, Bolivia, Brazil, Chile, Paraguay and Uruguay.

The EMEA region includes countries such as Europe, the Middle East, and Africa.

The Asia Pacific region includes countries such as China, India, South Korea and Vietnam.

For your information, ABI sold off its Australian subsidiary in 2019, and the sales affect only the Asia Pacific region.

Aside from the revenue breakdown, we also look into AB InBev’s profitability and margin and the breakdown of this data into segments and regions.

In addition to the revenue figures, this article also contains the growth rates of revenue by region.

Investors who are interested in AB InBev’s production volume breakdown may visit this page – ABI Production Volume By Segment And Region.

Let’s start off with the following topics!

Worldwide Revenue And Profit

ABI worldwide revenue and profit (click image to enlarge)

On a global basis, AB InBev’s worldwide revenue came in at $58 billion in 2022, the highest figure ever reported since 2018.

The 2022 revenue figure represents a rise of about 6% from 2021 or 23% from 2020.

In terms of gross profit, ABI’s consolidated figure totaled $31.5 billion in fiscal 2022, roughly inline with that reported in 2021 but was up 16% from 2020.

Similarly, ABI’s normalized EBIT totaled $15 billion in 2022 while normalized EBITDA came in at $20 billion during the same fiscal year.

These profitability figures reported in 2022 were slightly higher from those reported in 2021 but were up massively from the results reported in 2020.

In short, AB InBev’s sales and profitability figures have been on recovery since 2020 when it was badly impacted during the COVID-19 pandemic.

Worldwide Margin

ABI worldwide margin (click image to enlarge)

As seen in the chart above, AB InBev’s gross margin on a global basis hovers above 50% in all fiscal years and totaled as much as 54.5% as of fiscal 2022.

However, these figures have been on a decline since 2018 as the reported figure was 62% in 2018 and was down to only 54.5% as of 2022.

Similarly, ABI’s normalized EBIT and EBITDA margins on a worldwide basis also have come down since 2018 and totaled 25.6% and 34.3%, respectively, in 2022.

The 2022 margins were at record lows, indicating that AB InBev’s profitability has been on a decline.

Revenue By Region

ABI revenue brekadown by region (click image to enlarge)

For revenue breakdown by region, AB InBev’s North American region generates the highest amount of sales, reportedly at $16.6 billion in 2022 and $16.3 billion in 2021.

ABI’s Middle Americas region came in at 2nd place with a revenue figure of $14.2 billion reported in 2022 and $12.5 billion reported in 2021.

South America was the 3rd highest revenue-producing region for AB InBev, reportedly at $11.6 billion in 2022 and $9.5 billion in 2021.

On the other hand, the smallest revenue-producing region went to the Asia Pacific, reportedly at only $6.5 billion in 2022 and $6.8 billion in 2021.

Granted, we can see that some of ABI’s sales in certain regions had significantly improved while some had declined.

For example, AB InBev’s Middle Americas revenue grew 14% in 2022 from 2021 and a massive 42% from 2020.

Similarly, AB InBev’s sales in South America also had an exceptional result, with year-on-year growth rates topping 22% and 17% in 2022 and 2021, respectively.

One exception to this trend is the Asia Pacific region which saw its revenue decline by 4% in 2022 over 2021.

ABI’s sales in North America in 2022 was roughly inline with that reported in 2021 but was up 6% from 2020.

While AB InBev had only been able to grow its sales in the North American region by the slightest all these years, it did not went lower during 2020 when the COVID-19 crisis hit the world badly.

Instead, ABI’s North America sales actually ticked slightly higher in 2020 over 2019 while revenue from other regions were significantly down, illustrating the higher resilience of this region to disruptions compared to other regions in the world.

Revenue Share By Region

ABI revenue share by region (click image to enlarge)

In terms of the percentage of revenue by region, AB InBev’s North American region tops the chart at roughly 29% and 30% in 2022 and 2021, respectively.

The Middle Americas region contributed roughly 25% of sales to total revenue as of 2022 and this ratio has been rising since 2018.

Similarly, ABI’s percentage of revenue share in South America also has been on the rise since 2018, topping a record high of 20% as of 2022.

On the other hand, the revenue share for the EMEA and the Asia Pacific regions seems to have declined over the years.

For example, EMEA’s revenue share totaled only 14% as of 2022 compared to 15.8% reported in 2018 while the ratio has tumbled to a record low of 11% as of 2022 for the Asia Pacific region.

In short, the North America has the biggest market for AB InBev over the past 5 years while the Asia Pacific has been the smallest market in terms of revenue share.

Gross Profit Share By Region

ABI gross profit share by region (click image to enlarge)

For profitability, AB InBev’s North American operation has been the largest contributor of gross profit to the company, notably at 31% and 32% of the total gross income in 2022 and 2021, respectively.

This trend is not a surprise as the North American region also contributed the highest share of revenue to the company.

ABI’s Middle Americas region gross profit share was second only after the North America region, topping at 27% as of 2022,.

Similarly, the percentage of gross profit for the Middle Americas region also has been on the rise since 2018.

While the gross profit share for South America has been on the decline, it went significantly higher in 2022 and topped at 18%, reversing the downtrend which had been happening since 2018.

In contrast, the percentage of gross profit share for the Asia Pacific and EMEA regions had been on the decline and reached a record low of 12.6% and 10.7% as of 2022, respectively.

It is no surprise to see that the Asia Pacific contributes the least gross profit to the company among all regions in the world as the revenue share in this region also has been the smallest.

Gross Margin By Region

ABI gross margin by region (click image to enlarge)

While ABI’s North American region contributes the highest share of revenue and gross profit to the company, it is not the case when it comes to profitability.

As seen in the chart above, AB InBev’s gross margin in North America was slightly lower than the gross margin of the Middle Americas, topping 59.5% in 2022 which was slightly lower than that of the Middle Americas.

Therefore, the Middle Americas region has been ABI’s most profitable segment since 2018, with gross margin coming in above 60% over the past 5 years.

Despite the high gross margin reported in the Middle Americas region, the ratio seems to be on a declining trend and reached only 61% as of 2022, the lowest level that has ever been reported.

A similar declining gross margin was also seen for regions such as South America, EMEA, and the Asia Pacific.

In fact, South America’s gross margin has declined the most since 2018 and was among the lowest as of 2022, reportedly at only 48.5%.

On the contrary, the Asia Pacific wasn’t the least profitable region when it comes to gross margin despite having the lowest level of revenue and gross profit among all regions in the world.

As of 2022, AB InBev’s gross margin in the Asia Pacific grossed 51.5%, which was considerably higher than that of the EMEA and South America regions.

In short, AB InBev’s Middle Americas region has been the company’s most profitable segment, with gross margin topping at least 60% while South America has tumbled to become the least profitable region as of 2022, with gross margin topping only 48.5% in the same fiscal year.

Growth Rates Of Revenue By Region

ABI growth rates by region (click image to enlarge)

AB InBev has reported revenue decline in most regions in fiscal 2019 and 2020.

Granted, the revenue growth was probably the worst in fiscal 2020 as some of the regions were seen having a sales growth rate that tumbled to nearly -20%.

AB InBev’s catastrophic revenue decline in 2020 was driven primarily by the COVID-19 crisis which ravaged and put the world at a complete stop.

On the other hand, AB InBev was seen recovering considerably in fiscal 2021 and 2022 as revenue soared in double digits in most regions.

As seen, AB InBev’s global revenue in fiscal 2022 grew 6.4% while that of the Middle Americas and South America exceeded 10%.

On the other hand, AB InBev’s revenue growth was the least in regions such as North America and EMEA, coming in at only 1.9% and 1.1%, respectively, in fiscal 2022.

AB InBev’s Asia Pacific region actually reported a revenue decline of 4.6% in fiscal 2022.

A notable trend worth mentioning is AB InBev’s revenue growth in North America.

While revenue growth in North America has been marginal, it has been quite consistent and didn’t really report a decline.

As seen, AB InBev’s North America revenue growth has been mostly positive except for fiscal 2019 whose number grossed -0.1%, a very marginal growth rate indeed.

As a result, AB InBev’s business in North America has been rather resilience to a lot of factors which could range from the COVID-19 pandemic to the supply chain disruption as well as an inflationary environment.

Normalized EBIT Share By Region

ABI normalized EBIT share by region (click image to enlarge)

For normalized EBIT, ABI’s North American region is again at the top of the chart, contributing 36% of normalized EBIT share to the company in 2022.

This ratio has been on a rise since 2018 and topped as much as 42% in fiscal 2020 before declining to the latest ratio of 36% in 2022.

Similarly, AB InBev’s Middle Americas region contributed nearly the same level of normalized EBIT share, notably at 35.5% in 2022.

Also, this ratio has been increasing over the years, from 30.3% reported in 2018 to as much as 35.5% as of 2022.

On the other hand, the normalized EBIT share for the rest of the regions such as South America and EMEA has been on a decline.

For example, ABI’s EMEA region contributed only 10.5% of the normalized EBIT share as of 2022, the second least after the Asia Pacific region.

AB InBev’s normalized EBIT share from the Asia Pacific region has been the lowest among all regions in the world over the past 5 years.

As seen, AB InBev could only obtain a normalized EBIT share of only 10% as of 2022 from Asia Pacific.

Normalized EBIT Margin By Region

ABI normalized EBIT margin by region (click image to enlarge)

From the perspective of the normalized EBIT margin, AB InBev’s Middle Americas region is once again at the top of the chart, churning out an impressive ratio that topped 37% in 2022.

Therefore, the Middle Americas region is the most profitable segment, beating its North American counterpart despite having a much smaller revenue figure compared to the North American region.

As shown in the chart, ABI’s normalized EBIT margin in North America was only 32% as of 2022, a much lower figure compared to that of the Middle Americas.

While the Asia Pacific produces a much lower revenue, its normalized EBIT margin was much higher than that of EMEA region, notably at 22% as of 2022 compared to 19% reported for the EMEA region.

On the other hand, AB InBev’s profitability in the South America region has been on the decline as reflected in the decreasing normalized EBIT margin over the years.

Normalized EBITDA Share By Region

ABI normalized EBITDA share by region (click image to enlarge)

AB InBev’s Middle Americas contributes one of the highest normalized EBITDA to the company, at 33% of the total normalized EBITDA in 2022.

AB InBev’s North America contributes only 30.5% of normalized EBITDA to the company in 2022 while the South America came in at 3rd place with a normalized EBITDA share of 18% in 2022.

Similarly, AB InBev’s Asia Pacific operation contributes only 10.6% of normalized EBITDA in 2022, the lowest among all regions in the world.

Normalized EBITDA Margin By Region

ABI normalized EBITDA margin by region (click image to enlarge)

AB InBev’s Middle Americas is once again topping the chart as the most profitable region with a normalized EBITDA figure that was among the highest compared to other regions.

AB InBev’s normalized EBITDA margin for Middle Americas came in at 46% in 2022, which was much higher than the 37% reported for North America.

Despite having the largest revenue share, AB InBev’s North America was trailing behind Middle Americas when it comes to profitability.

A common trend seen among the regions is the declining normalized EBITDA margin over the years.

For example, AB InBev’s normalized EBITDA margin for Middle Americas has been on the decline and reached the lowest as of 2022.

A similar trend applies to North America whose normalized EBITDA margin also has been on the decline.

AB InBev’s South America operation has now become the least profitable segment as the normalized EBITDA margin topped only 30% as of 2022, a record low and also the smallest among all regions.

Conclusion

In conclusion, ABI’s North America generates the highest revenue while the Middle Americas comes in second.

It is the same case for revenue share in which these regions are at the top spots.

In terms of profit numbers, AB InBev’s North America and Middle Americas also have been at the top of the chart, with gross profit, normalized EBIT, and EBITDA share topping more than 30%.

However, ABI’s North America can only obtain the second place when it comes to margin and is led by Middle Americas whose margins has been at the top among all regions.

Therefore, ABI’s Middle Americas has been the company’s most profitable segment despite having revenue that is significantly below that of North America.

For your information, AB InBev’s North American revenue share came in at 29% in 2022 while that of the Middle Americas was only 24.5% during the same fiscal year.

Meanwhile, AB InBev’s South America region is the least profitable segment as its gross margin, normalized EBIT, and EBITDA margins have nearly sat at the bottom of the chart compared to other regions.

References and Credits

1. Financial figures in this article were obtained and referenced from AB InBev’s financial statements, earnings releases and reports which are available in AB InBev Results Center.

2. Image by Marcelo Ikeda Tchelão from Pixabay

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