Summary of Q220 results Q220 results were materially ahead of consensus expectations at both the top- and bottom-line. To be more specific, Q2 LFL sales at -17.7% were c.530bp better than consensus expectations with South America being the principal driver of the beat (-7.2% vs. consensus at -24.5%). Turning towards the bottom-line, EBITDA at USD3.4bn was c.12% ahead of consensus with LFL EBITDA declining by -34.1% (consensus -36.4%). While mindful that ABInBev is not a stock where investors pay much attention to EPS, underlying basic EPS at USD0.40 was +76% vs. consensus. News Volumes declined by -32.4% in April, -21.4% in May and June experienced +0.7% growth. Earnings We revise our FY20e/FY21e/FY22e EPS by +6%, +9% and +10% respectively. Conscious that the market tends to pay rather more attention to operational profits at ABInBev, we note that our FY20e EBIT is left broadly unchanged and we increase our FY21e and FY22e EBIT by +4% and +5% respectively (we increase our margin assumptions). Investment thesis ABInBev has three attributes that we are eager to avoid in the current environment: a material exposure to out-of-home sales (we estimate that the on-trade accounts for c.36% of sales), high financial leverage and a material exposure to Latin America (the area where we have greatest macro concern). Rating / target price We maintain our Underperform rating. Our target price moves from EUR41 to EUR42. 15 questions for management Can you please shed colour on the stock replenishments influencing the +0.7% June volume?