Q2 2026 Budweiser Brewing Company APAC Ltd Earnings Call Transcript
Key Points
- Strong double-digit volume growth in South Korea in Q2, driven by easier comparisons and market share gains.
- India delivered double-digit revenue growth in both Q2 and H1 2026, with market share gains in premium segments.
- Revenue per hectoliter increased by 2.1% in Q2, benefiting from positive country and brand mix in China.
- O2O channel in China saw strong double-digit growth in Q2 and H1, supporting premiumization strategy.
- South Korea normalized EBITDA margin expanded substantially by 400 basis points in Q2, supported by top-line performance and operational leverage.
- Total APAC volumes decreased by 2.2% in H1 2026, with a 4.1% decline in Q2 due to weakness in China.
- China volumes dropped 9.7% in Q2, with revenue down 8.6% and normalized EBITDA falling 15.9%.
- Normalized EBITDA margin contracted by 236 basis points in H1, pressured by China top-line and increased marketing investments.
- China on-premise channel remains weak with no signs of recovery, and July trends continue to show market weakness.
- Dividend sustainability is at risk if performance does not improve, as earnings have declined for several years.
(audio in progress) Contributed double-digit volume growth.
I will now hand it over to Norvik to discuss our performance in more details. Thank you.
Thank you, YJ, and good morning, everyone. In the first half of 2026, total APAC volumes decreased by 2.2%. Revenue decreased by 1.4%, while revenue per hectoliter increased by 0.8%. Our normalized EBITDA decreased by 8.9%, while our normalized EBITDA margin contracted by 236 basic points.
In the second quarter, total volumes decreased by 4.1%, impacted by performance in China, partially offset by growth in South Korea and in India. Revenue decreased by 2.1%, while revenue per hectoliter increased by 2.1%, benefiting from a positive country mix and brand mix in China. Our normalized EBITDA decreased by 9.7%, impacted by our top-line performance in China, increased marketing investments, and reduced operating income.
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