Reference no: EM133439990

Option 1: AB InBev Reports First Decline in Volume Since Pandemic - March 2, 2023 (Bloomberg)

"AB InBev SA, the world's largest brewer, reported its first volume decline since the early days of the pandemic and gave an earnings forecast for 2023 that disappointed investors.

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AB InBev's 276 bps gross margin decline despite almost 9% pricing shows further operating margin pressure is likely unless it can boost volume again in 2023. However the small 4Q decline, even with the World Cup, suggests a difficult year ahead."

Website Marketscreener commented on 3/6/23: "At €57 per share, or $61 in US dollars, AB InBev is trading at roughly x16 its profits, notwithstanding said profits in a downward trend and a still gigantic debt of $80 billion. That is, all things being equal, exactly ten years of cash profits. The refinancing deadlines are getting dangerously close: $3 billion by 2025, then $20 billion between 2026 and 2029. There is little room to increase the distribution of dividends, which has already been severely eroded since 2018."

Finally ABInbev appointed a non-Brazilian CEO: You! Based on what you know about the company and trends you see in this industry, please detail the major challenges you will face and bring suggestions to address those challenges.