Budweiser Brewing Company APAC (1876) Q2 2025 earnings summary

Executive summary

• H1 2025 saw a 6.1% decrease in total volumes and a 5.6% drop in revenue year-over-year, with revenue per hectoliter up 0.5% and disciplined investment in mega-brands amid challenging market conditions, especially in China.

• Normalized EBITDA fell 8.0% to $983 million, with margin contracting by 82 bps to 31.3%.

• Profit attributable to equity holders declined to $409 million, impacted by non-underlying income taxes from internal restructuring.

• India delivered double-digit growth in premium and super premium portfolios, with Budweiser outpacing the industry.

• No interim dividend was declared for 1H25, but a $748 million final dividend for FY2024 was paid in June 2025.

Financial highlights

• Revenue: $3,136 million (down 5.6% YoY); gross profit: $1,613 million (down 4.9% YoY); cost of sales decreased 6.4% to $1,523 million.

• Normalized EBITDA: $983 million (down 8.0% YoY); margin contracted by 82 bps to 31.3%.

• Normalized EBIT: $679 million (down 9.6% YoY); margin at 21.7%.

• EPS: 3.10¢ (down from 4.10¢); normalized EPS: 3.59¢ (down from 4.19¢).

• Net cash position as of June 30, 2025, was $2.4 billion.

Outlook and guidance

• Continued volume headwinds expected in China through Q3 due to on-premise softness and anti-extravagance policy; easier comps anticipated in Q4.

• Management focuses on mega-brand execution, premiumization, in-home channel expansion, and digital transformation for long-term growth.

• India expected to sustain double-digit growth, with ongoing premiumization and favorable regulatory trends.

• South Korea anticipated to benefit from price increases, operational efficiencies, and premiumization for future margin recovery.