Budweiser Brewing Co. APAC Ltd. ((HK:1876)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Budweiser Brewing Co. APAC Ltd. painted a mixed picture, highlighting both challenges and successes across its markets. The overall sentiment was one of cautious optimism, with significant declines in the Chinese market being offset by robust growth and strategic advancements in India and South Korea. The company emphasized its commitment to innovation and optimizing market presence despite facing considerable headwinds in China.
Strong Performance in India
In the third quarter, Budweiser’s operations in India demonstrated impressive resilience, achieving double-digit revenue growth. This translated into a strong EBITDA performance, with the Budweiser brand outpacing industry growth. The Premium and Super Premium portfolio saw volume and revenue increases in the double digits, underscoring the brand’s strong market position in the region.
Innovation and Market Expansion in South Korea
South Korea emerged as a bright spot for Budweiser APAC, with successful launches of nonalcoholic beers and flavored variants like Cass 0.0 and Cass Lemon Squeeze. These innovations contributed to a positive brand mix and revenue growth per hectoliter. The introduction of Cass ALL Zero, with its unique 4 Zero concept, further bolstered the market, maintaining flat volumes while achieving mid-single-digit revenue growth.
Advancements in BEES Platform
The BEES B2B platform continued its expansion, now reaching over 320 cities across China. This strategic move has enhanced Budweiser’s commercial capabilities and strengthened customer relationships, positioning the company to better navigate the challenging Chinese market.
Decline in China Market Performance
China posed significant challenges for Budweiser, with third-quarter volumes dropping by 11.4% and revenue decreasing by 15.1%. The revenue per hectoliter fell by 4.1%, and normalized EBITDA declined by 17.4%. These declines were attributed to top-line performance issues and operational deleverage, highlighting the need for strategic adjustments.
Overall Revenue and Volume Decrease
For the first nine months of 2025, Budweiser APAC experienced a 7% decrease in total volumes and a 6.6% drop in revenue, with normalized EBITDA down by 7.7%. The third quarter alone saw volumes and revenue decrease by 8.6% and 8.4%, respectively, reflecting ongoing market challenges.
Ongoing Inventory Management Challenges
Budweiser APAC is actively addressing inventory management challenges in China, focusing on rightsizing inventories and making adjustments based on sell-out trends. This attentive management is crucial to aligning supply with market demand and stabilizing performance in the region.
Forward-Looking Guidance
Looking ahead, Budweiser APAC is focused on reigniting growth and rebuilding market share, particularly in China. The company plans to enhance its route to market, increase investments in mega brands like Budweiser, Harbin, and Corona, and focus on in-home channels. Innovation and digitization, including the expansion of the BEES B2B platform, remain central to their strategy, alongside leveraging strong performances in India and South Korea.
In summary, Budweiser Brewing Co. APAC Ltd.’s earnings call highlighted a complex landscape, with notable successes in India and South Korea counterbalancing challenges in China. The company’s commitment to innovation and strategic market adjustments aims to navigate these headwinds and foster future growth.