Goodwill

12 Months Ended

Dec. 31, 2025

14. Goodwill



Million US dollar	31 December 2025		31 December 2024

Acquisition cost
Balance at end of previous year		112 637		119 302
Effect of movements in foreign exchange		7 634		(7 082)
Transfers (to)/from other assets categories¹		(164)		(7)
Hyperinflation monetary adjustments		169		425
Balance at end of the period		120 276		112 637

Impairment losses
Balance at end of previous year		(2 158)		(2 259)
Effect of movements in foreign exchange		(209)		101
Balance at end of the period		(2 368)		(2 158)


Carrying amount

Balance at end of the period		117 908		110 479

The carrying amount of goodwill was allocated to the different cash-generating units as follows:

The transfer (to)/from other asset categories relates mainly to the separate presentation in the statement of financial position of goodwill held for sale in accordance with IFRS 5 Non-current assets held for sale and discontinued operations.

• Amended to conform to the 2025 presentation.



Million US dollar	31 December 2025		31 December 2024 2

United States		33 330		33 387
Rest of North America		1 959		1 864
Mexico		13 819		12 250
Colombia		16 277		13 821
Rest of Middle Americas		24 465		23 205
Brazil		3 323		2 953
Rest of South America		1 323		1 345
Europe		2 859		2 557
South Africa		9 796		8 584
Rest of Africa		4 626		4 547
China		3 073		2 948
Rest of Asia Pacific		3 057		2 998
Global Export and Holding Companies		-		21
Total carrying amount of goodwill		117 908		110 479

Goodwill, which accounted for approximately 54% of AB InBev total assets as of 31 December 2025, is tested for impairment at the cash-generating unit level (that is one level below the operating segments). The cash-generating unit level is the lowest level at which goodwill is monitored for internal management purposes. Except in cases where the initial allocation of goodwill has not been concluded by the end of the initial reporting period following the business combination, goodwill is allocated as from the acquisition date to each of AB InBev’s cash-generating units that are expected to benefit from the synergies of the combination whenever a business combination occurs.

2025 impairment testing

AB InBev completed its annual impairment test for goodwill at cash-generating unit level and concluded that, based on the assumptions described below, no impairment charge was warranted.

The company cannot predict whether an event that triggers impairment will occur, when it will occur or how it will affect the value of the asset reported. Goodwill impairment testing relies on a number of critical judgments, estimates and assumptions. AB InBev believes that all of its estimates are reasonable: they are consistent with the company’s internal reporting and reflect management’s best estimates. However, inherent uncertainties exist, that management may not be able to control. If the company’s current assumptions and estimates, including projected revenues growth rates, competitive and consumer trends, weighted average cost of capital, terminal growth rates, and other market factors, are not met, or if valuation factors outside of the company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future.

The company’s impairment testing methodology is in accordance with IAS 36

Impairment of Assets

, in which fair-value-less-cost-to-sell and value in use approaches are taken into account. This consists in applying a discounted cash flow approach based on acquisition valuation models for the cash-generating units showing an invested capital to Normalized EBITDA multiple above 9x and valuation multiples for the other cash-generating units. The discounted cash flow approach was applied for the Colombia, South Africa, Rest of Asia Pacific and the United States cash-generating units.

Key assumptions

The key judgments, estimates and assumptions used in the discounted cash flow calculations were generally as follows:

●

Cash flows are based on AB InBev’s 10-year plan as approved by key management. The plan is prepared per cash-generating unit and is based on external sources in respect of macro-economic assumptions, industry, inflation and foreign exchange rates, past experience and identified initiatives in terms of market share, revenue, variable and fixed cost, capital expenditure and working capital assumptions;

●

In order to calculate the terminal value, the company extrapolated the cash flows after the first 10-year period using expected annual long-term GDP growth rates based on external sources, or applied a market multiple after the first 5 years of the plan set at 10.8x. The company considered sensitivities on these metrics and corroborated the calculations by market multiples;

●

Projections are discounted at the unit’s weighted average cost of capital (WACC), considering sensitivities on this metric;

●

Cost to sell is assumed to reach 2% of the entity value based on historical precedents.

For the main cash generating units, the terminal growth rate applied generally ranged between 2% and 3%.

The WACC applied in US dollar nominal terms were as follows:



Cash-generating unit	31 December 2025		31 December 2024

Colombia		9%		10%
South Africa		10%		11%
Rest of Asia Pacific		8%		8%
United States		7%		7%

Sensitivity to change in key assumptions

During its valuation, the company ran sensitivity analysis for key assumptions including the weighted average cost of capital and the terminal growth rate.

In the sensitivity analysis performed by management during the annual impairment testing in 2025, an adverse change of 1% in WACC or terminal growth rate would not cause a cash-generating unit’s carrying amount to exceed its recoverable amount. While a change in the estimates used could have a material impact on the calculation of the fair values and trigger an impairment charge, the company, based on the sensitivity analysis performed, is not aware of any reasonably possible change in a key assumption used that would cause a cash generating unit’s carrying amount to exceed its recoverable amount.

Although AB InBev believes that its judgments, assumptions and estimates are appropriate, actual results may differ from these estimates under different assumptions or market or macro-economic conditions.