Anheuser-Busch InBev backs hard seltzer push with $1B investment

  • Anheuser-Busch AB InBev plans to invest over $1B in its U.S. manufacturing facilities over the next two years as it looks to push deeper into the hard seltzer market.
  • The beer giant came late to the hard seltzer game, but is now getting more serious about grabbing market share from leaders White Claw and Boston Beer's (NYSE:SAM) Truly.
  • "We need to build more seltzer capacity so we can attend the demand from consumers, which is a growing demand," Anheuser-Busch CEO Michel Doukeris was quoted saying.
    Per Nielsen numbers, Bud Light Seltzer was holding at 10% market share last month. Industry-wide flavored malt beverage sales are strong from retail channels.

    AB Inbev fundamentals

    Over the current book year the total revenue from the company in Leuven (Louvain) will be 46.69 billion euros (consensus estimates). This is rather significant lower than 2019's revenue of 52.33 billion euros.

    Historical revenues and results AB AB InBev plus estimates 2020

    koersgrafiekenab inbev

    The analysts expect for 2020 a net profit of 4.19 billion euros. According to most of the analysts the company will have a profit per share for this book year of 2.2 euros. Based on this the price/earnings-ratio is 24.58.

    For this year most of the analysts expect a dividend of 78 cents per share. The dividend yield is then 1.44 percent. The average dividend yield of the brewers equals a limited 0.41 percent.

    Newest target prices around 64 euros

    UBS , KBC Securities and Goldman Sachs recently provided recommendations for the stock.

    Based on the current number of outstanding shares AB AB InBev 's market capitalization 88.17 billion euros. The AB AB InBev stock was the past 12 months quite unstable. Since last February the stock is 20 percent lower. This year the stock price moved between 29 and 69 euro.

    Historical stock prices AB AB InBev

    stock price abinbev

    Click here for dividend AB InBev. At 17.39 the stock trades 1.13 percent lower at 54.07 euros.

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