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ABI's sales & mktg spend up from $7.2 bil in 2024 to a staggering $7.6 bil for trailing 12 mos thru Mar, it showed in conference call presentation this morn. ABI is "increasing investment" in sales & marketing "to fuel momentum," co said, while maintaining "superior profitability" globally. Even as its investments up by hundreds of millions, ABI also grew its EBITDA margin from 33.5% in Q1 2023 to 35.6% in Q1 2026. In US, "looks like the underlying business in Q1 is growing around 4.7%" (STRs up 0.3%, plus nearly 4.5% rev per hectoliter), according to UBS' Sanjeet Aujla. He asked "how much of that is coming from the beyond beer portfolio" and what gives confidence that "brands like Cutwater can keep growing" off much higher base. "The math is very straightforward," said ABI ceo Michel Doukeris. "STRs were positive and the revenue per hectoliter was very good&hellip; very similar to the global business."Better US Portfolio 10 Years in the Making; "Very Strong" Portfolio Now While Michel didn't really give the % from beyond beer, he did reiterate that "we are on a mission to rebalance our portfolio in the US&hellip;. It's something we have been building over time." And 40-45% of AB's US biz is "above core" and growing. As ABI is also "stabilizing the other brands we have in the declining segments," that set up a "very encouraging quarter" and perceived trajectory for the "mid, long term in the US. We have a better portfolio today than what we had a couple of years ago." Talking about Beyond Beer contribution, Michel said "this was a bet that we took to the heart back then in 2017. We learned a lot" but it took time. "This is 10 years in the making. The portfolio today is very strong." Each brand is "growing double digits or more" and they all have "huge...room to continue to grow" with "low penetration, low household penetration, low participation in consumers" but "very, very strong propositions."Bullish on Beer: Gaining Global Share, "Strong Runway for Future Volume Growth" But at same time, ABI remains very bullish on beer, saying beer "gained 60 basis points of share in alcohol beverage in 2025" globally, according to IWSR. And beyond beer another 10 basis points. Beer and beyond beer "have now gained more than 300 basis points of share since 2019," said Michel. But # of consumers participating in beer and alcohol each remained "broadly stable." Beer "plays an important role in bringing people together and creating moments of celebration," noted Michel. "We believe beer has a strong runway for future volume growth across our footprint." Mexico, Columbia, Brazil, South Africa and Peru, amongst others, hit "record high first quarter volumes," noted Michel.In a report amusingly titled "Plenty Leffe in the Tank," Jefferies analyst Ed Mundy wrote: "After a period of extreme volatility, a clear picture of ABI's compounding ability and cash return prospects is starting to emerge. Execution is improving, volumes are back in growth, mix is becoming an increasingly important contributor and cash flow generation remains strong." BUD stock up over 9% today on NYSE and 25% for the year, hitting a 52-wk high.

ABI Sales and Marketing Spend at $7.6 Bil Last 12 Mos; US Growth Segments Up Double Digits

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