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Why the world’s most profitable beer company should be part of your portfolio

Updated: Jan 9, 2024


With 18 brands producing a $1 billion in annual sales, Anheuser-Busch Inbev is the largest and most profitable beer company in the world and has six of the top 10 most valuable beer brands in the world.

Beer companies were a core part of an Australian investor’s portfolio because of the high levels of profitability, strong cash flow generations and rising dividends.

The portfolio includes six of the 10 most valuable beer brands in the world.

With both Lion Nathan and Fosters Group taken over by overseas companies this has left a void in most Australian portfolios.

Insync Funds Management invests in companies that complement Australian equity portfolios. A core holding in the Insync Global Titans fund is Anheuser-Busch Inbev.

It is the largest and most profitable beer company in the world operating in some of the largest and most profitable beer pools including the US, Brazil, Russia and China. Some of its well‐known brands include Budweiser, Becks, Corona and Stella Artois. Anheuser‐Busch is the leading global brewer with 18 brands that generate more than $1 billion per year in sales.

AB InBev has six of the top 10 most valuable beer brands in the world.In its most recent announcement it increased the dividend by 16%. AB InBev generates mid–‐30s operating margins, well above the next profitable firm. With its growing dividend (3% yield) and share buyback potential, AB Inbev meets Insync’s hurdles of being very profitable and looking after shareholders.

Source: Vinepair.com MAP: The Most Popular Beer In Every Country

Map of the most popular beers by country


 
 
 
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Equity Trustees Limited (“EQT”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Insync Global Quality Fund and the Insync Global Capital Aware Fund.  EQT is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).  This information has been prepared by Insync Funds Management Pty Ltd (ABN 29 125 092 677, AFSL 322891) (“Insync”), to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Insync, EQT nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.

©2018 by Insync Funds Management Pty Ltd.

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