Latest news with #BEES
Yahoo
11-04-2025
- Business
- Yahoo
Anheuser-Busch InBev SA/NV (NASDAQ:BUD): A Good Buy with Valuations at 10-Year Lows
We came across a bullish thesis on Anheuser-Busch InBev SA/NV (NASDAQ:BUD) on ValueInvestorsClub by investor8888. In this article, we will summarize the bulls' thesis on BUD. The company's shares were trading at $45.44 when this thesis was published, vs. the closing price of $60.71 on Apr 10. Photo by Wil Stewart on Unsplash BUD produces, distributes, exports, markets, and sells beer and beverages globally. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and many more. The Consumer Staples Select Sector SPDR Fund (XLP) is down 4.5% in the last six months due to several developments. For example, regulations on warnings for alcohol, ban on dyes/ingredients and new packaging guidelines have a direct bearing on companies like BUD. To add to it, macroeconomic headwinds like higher rates, stronger USD and potential tariffs have shifted investors away from consumer staple companies. This has created a better risk/reward proposition in this industry, with companies like BUD at a very attractive valuation. The P/E for US staples is at 18.55, which is close to its 10-year low on an absolute basis. It also offers a better valuation compared to the S&P 500 which has a P/E of ~22.75x. Even its EV/EBITDA of 9x is below its historical level of 11.7x. One of BUD's key transformations has been its app-based offering called BEES. BEES managed a Gross Merchandise Value (GMV) of $48 billion on an annualized basis making it one of the largest ecommerce platforms. In a short time, BEES has managed to challenge players like DoorDash which has a GMV of $77 billion and a market cap of $72 billion. This implies that BEES could add ~50 billion in value to BUD. This represents 20% of its current market capitalization. BUD should manage a higher topline growth with EBITDA reaching $25.7 billion by 2026 as operating leverage improves. Applying a 10x EBITDA multiple, the fair value of BUD's share price should be $81. Factoring in the value of BEES, the value should rise to $101 per share. From its current price, this is an upside of 66%. While we acknowledge the potential of BUD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BUD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
11-04-2025
- Business
- Yahoo
IFRS Foundation and TNFD MOU on nature-related disclosures
The IFRS Foundation and the Taskforce on Nature-related Financial Disclosures (TNFD) have formalised a collaboration through a memorandum of understanding (MOU). Under the agreement, the parties aim to integrate TNFD recommendations into the International Sustainability Standards Board's (ISSB) ongoing work, aiming to provide capital markets with nature-related financial disclosures. The ISSB has collaborated with the TNFD as a knowledge partner since the taskforce was established in late 2021. Its contributions, including the SASB sector classification system, earlier biodiversity guidance developed by the CDSB, and the IFRS S1 standard on general sustainability disclosure requirements, played a key role in shaping the TNFD's recommendations released in September 2023. IFRS Foundation trustees chair Erkki Liikanen said: 'We are delighted to be formalising our partnership with TNFD to ensure that the ISSB gives due consideration to the work TNFD have put into creating recommendations for nature-related financial disclosures. 'Transparency and accountability are a key means of enabling more stable, resilient and efficient capital markets, and this collaboration will advance the ISSB's ongoing work to reduce the complexity of the sustainability disclosure landscape, while building on established expertise and practice.' TNFD co-chair David Craig said: 'Like the TCFD before us, the TNFD was initiated ahead of specific reporting standards to develop market-based recommendations for decision-useful and practical corporate reporting practices on nature-related aspects beyond GHG emissions. 'Having engaged thousands of market participants in the development of our recommendations over the past four years from across 50 jurisdictions and with first-generation TNFD reports now published from among the 500 TNFD Adopters, we welcome this deepened collaboration with the ISSB to inform their evolving sustainability reporting standards. 'One of the objectives of the TNFD is to help achieve Target 15 of the Kunming-Montreal Global Biodiversity Framework and we believe that better disclosures about nature issues, which will result from our collaboration with the ISSB, will support the achievement of that goal.' In 2024, the TNFD began supporting the ISSB's Biodiversity, Ecosystems and Ecosystem Services (BEES) research project. By February 2025, TNFD presented an overview of its work to ISSB members, paving the way for further collaboration based on shared understanding. Under the MoU, both organisations will exchange research, knowledge, and technical expertise to inform the ISSB's BEES initiative and nature-related aspects of SASB standards. They will also explore joint market engagement and capacity-building initiatives with other key partners. The ISSB focuses on addressing investors' information needs regarding companies' sustainability-related risks and opportunities, specifically targeting primary users as defined in ISSB Standards. Any nature-related disclosures resulting from ISSB's research will undergo the IFRS Foundation's due process, including public consultation. Alongside its collaboration with the ISSB, the TNFD continues its global market engagement and capacity-building efforts on nature-related issues. This includes developing and pilot testing additional guidance for preparers and advancing data-related issues to improve market access to high-quality nature-related data. "IFRS Foundation and TNFD MOU on nature-related disclosures " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
27-02-2025
- Business
- Yahoo
Anheuser-Busch InBev SA/NV (BUD) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ...
Revenue: Reached an all-time high of $59.8 billion, with organic growth offsetting FX headwinds. EBITDA: Nearly $21 billion, with margin expansion across all five operating regions. Net Debt-to-EBITDA Ratio: Reduced to 2.89 times, below 3 times for the first time since 2015. Free Cash Flow: Increased by $2.5 billion, reaching $11.3 billion in 2024. Underlying EPS: Increased by 15.4% to $3.53 per share. Dividend: Proposed full year dividend of EUR1 per share, a 22% increase versus last year. BEES Marketplace GMV: Delivered $2.5 billion, a 57% increase versus last year. Volume Performance: Total volume declined by 1.4%, with growth in most markets except China and Argentina. Corona Brand Growth: Volumes increased by 9.4% outside of Mexico. Sales and Marketing Investment: $7.2 billion in 2024. Warning! GuruFocus has detected 4 Warning Signs with BUD. Release Date: February 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Anheuser-Busch InBev SA/NV (NYSE:BUD) achieved all-time high US dollar revenues with growth in 75% of its markets. The BEES marketplace delivered $2.5 billion in GMV, a 57% increase compared to the previous year. EBITDA grew at the top end of the company's outlook, reaching nearly $21 billion with margin expansion across all five operating regions. The company achieved a significant milestone in its deleveraging journey with a net debt-to-EBITDA ratio of 2.89 times, below 3 times for the first time since 2015. The Board proposed a full-year dividend of EUR1 per share, a 22% increase compared to the previous year. Total volume performance in 2024 was constrained by a soft consumer environment in China and Argentina, leading to a total volume decline of 1.4%. The company underperformed in the Chinese market due to a challenging consumer environment and on-premise channel impacts. The US margin expansion in Q4 was lower than in previous quarters, partly due to increased investments and higher COGS. Currency depreciation in Latin America poses a concern for raw material costs and COGS. The first quarter of 2025 is expected to face challenges due to fewer selling days, Easter timing, and shipment phasing comparables in the US and China. Q: With the significant increase in free cash flow, what are the potential uses for this increased flexibility? Are major acquisitions off the table? A: Fernando Tennenbaum, CFO, explained that the primary focus remains on organic growth, with $55 billion invested from 2021 to 2024. The company will balance between deleveraging, returning capital to shareholders, and selective M&A. With leverage below 3 times, there's increased flexibility for capital allocation, including a $2 billion share buyback and a 22% dividend increase. Q: How is AB InBev planning to address the challenges in China, and what is the strategy for growth there? A: Michel Doukeris, CEO, noted that despite a soft consumer environment, the company sees significant potential in China. They are increasing investments, focusing on mega brands, and enhancing execution, particularly during key events like the Chinese New Year. The company expects conditions to improve throughout the year. Q: Can you elaborate on the margin outlook for the US, considering recent investments and cost pressures? A: Michel Doukeris highlighted that while each quarter is unique, the US business is gaining momentum with strong brand performance. The focus is on investing to accelerate portfolio growth, with ongoing productivity efforts to manage costs effectively. Q: How is the company balancing marketing investments with the rise of digital capabilities? A: Michel Doukeris emphasized that while the ratio of marketing spend to sales has decreased, the effectiveness of investments has improved through data-driven strategies and digital platforms. The focus is on maximizing reach and engagement, as demonstrated by successful campaigns like the Super Bowl. Q: What are the expectations for cash flow in 2025, considering the improvements seen in 2024? A: Fernando Tennenbaum stated that with continued EBITDA growth, efficient CapEx spending, and a normalized working capital cycle, the company is well-positioned to generate strong cash flows in 2025. The focus remains on optimizing resource allocation and maintaining financial discipline. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
