Budweiser Brewing Company APAC (1876) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw total volumes decline by 6.1% and revenue decrease by 7.5% year-over-year, mainly due to ongoing challenges in China, partially offset by strong growth in South Korea and India.

• CEO emphasized disciplined execution, market share focus, premiumization, and digital initiatives.

• Normalized EBITDA fell 11.2%, and normalized profit attributable to equity holders dropped to USD 235 million from USD 297 million in 1Q24.

Financial highlights

• Revenue: USD 1,461 million, down 7.5% year-over-year; revenue per hl down 1.5%.

• Normalized EBITDA: USD 485 million, down 11.2%; margin contracted by 140 basis points to 33.2%.

• APAC West volumes and revenue dropped 8.6% and 11.7%, respectively; APAC East volumes and revenue rose 11.9% and 11.7%.

• In China, volumes declined 9.2% and revenue fell 12.7%, with inventory management initiatives accounting for about a quarter of the volume decline.

• South Korea saw double-digit volume and revenue growth, with EBITDA margin expanding by 337 basis points and normalized EBITDA up 24.4%.

Outlook and guidance

• Management remains cautious on China’s on-trade recovery, citing persistent low consumer confidence and macro volatility.

• Sell-in and sell-through in China are expected to converge in the second half of 2025 as inventory normalization completes.

• Continued focus on premiumization, digital expansion, in-home channel, and disciplined execution across APAC.

• Cautions on forward-looking statements due to market uncertainties and evolving industry conditions.