Q1 2025 Budweiser Brewing Company APAC Ltd Earnings Call Transcript
Key Points
- Budweiser Brewing Co APAC Ltd (BDWBF) reported strong growth in South Korea, with double-digit increases in volume and revenue, supported by shipment phasing ahead of a price increase.
- The company successfully expanded its in-home channel in China, with increased volume and revenue contributions, aligning with consumer trends towards in-home consumption.
- Budweiser and Harbin brands saw increased marketing investments, with Harbin's sales volumes increasing by approximately 70% in the first quarter.
- The company is leveraging technology through its B2B platform, Bs, which expanded to over 320 cities in China, enhancing commercial capabilities.
- In India, the premium and super premium portfolio continued to grow, contributing positively to the company's overall performance.
- Total volumes and revenue decreased by 6.1% and 7.5% respectively, with significant challenges in the Chinese market impacting overall performance.
- Revenue per hectare decreased by 1.5% due to a negative geographic and channel mix, while normalized EBITDA decreased by 11.2%.
- In China, volumes declined by 9.2%, affected by ongoing weakness in the on-premise channels and inventory management initiatives.
- The APAC West region saw a decrease in volumes and revenue by 8.6% and 11.7%, respectively, with a 3.4% decline in revenue per hectare.
- Normalized EBITDA margin contracted by 140 basis points, indicating pressure on profitability.
Welcome to the 2025 first-quarter announcement conference call for Budweiser Brewing Company APAC Limited. Hosting the call today from Budweiser APAC is Mr. YJ Cheng, Chief Executive Officer and Co-Chair of the Board; and Mr. Ignacio Laras, Chief Financial Officer.
The results for three months ended March 31, 2025, can be found in the press release published earlier today and available on the Hong Kong Stock Exchanges and Budweiser APAC websites.
Before proceeding, let me remind you that some of the information provided during this results call, including our answers to your questions on this call, may contain statements of future expectations and other forward-looking statements. These expectations are based on the management's current views and assumptions and involve known and unknown risks, uncertainties, and other factors beyond their control.
It is possible that Budweiser APAC's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Budweiser APAC is under
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