Budweiser Brewing Company APAC (1876) Q2 2026 earnings summary

Executive summary

• First half 2026 saw a 2.2% decline in total volumes, mainly due to softness in China, partially offset by gains in South Korea and India, with market share and premium segment growth achieved.

• Revenue decreased by 1.4% year-over-year, but revenue per hectoliter increased by 0.8% due to positive country and brand mix.

• Normalized EBITDA dropped 8.9% year-over-year, with margin contracting by 236 bps to 29.2%.

• Profit attributable to equity holders rose 15.6%, benefiting from the absence of prior year one-offs and favorable tax phasing; normalized profit rose to $481M from $474M in 1H25.

• Net cash position remained strong at $2.5B as of June 30, 2026.

Financial highlights

• 1H26 revenue: $3,171M (-1.4% YoY); cost of sales: $1,526M (-1.6% YoY); gross profit: $1,645M (-1.2% YoY); gross margin up 10 bps to 51.9%.

• Normalized EBITDA: $926M (-8.9% YoY); normalized EBIT: $637M (-9.0% YoY).

• Normalized EPS: 3.63 cents (up from 3.59 cents in 1H25); basic EPS: 3.57 cents (up from 3.10 cents in 1H25).

• Operating cash flow: $530M; cash and cash equivalents at period end: $2,543M.

• Profit attributable to equity holders rose 15.6%, benefiting from the absence of prior year one-offs and favorable tax phasing.

Outlook and guidance

• Management remains cautious on China, expecting continued weakness in Q3 and ongoing margin pressure due to sustained brand investments.

• Higher input costs, especially aluminum, are expected to impact margins in H2 2026 and into 2027, partially offset by barley price relief.

• Focused actions underway to strengthen performance in China, including investments in megabrands, innovation, and in-home channels.

• Continued commercial investment in India and South Korea to drive market share and premium segment growth.

• No immediate plans for broad-based price increases in China; focus remains on volume stabilization.