Budweiser Brewing Company APAC (1876) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw total volumes decrease by 6.1% and revenue by 7.5% year-over-year, mainly due to ongoing challenges in China, partially offset by strong growth in South Korea and India.

• CEO emphasized disciplined execution, market share focus, premiumization, and digitalization strategies.

• Normalized EBITDA fell 11.2%, and normalized profit attributable to equity holders dropped to USD 235 million from USD 297 million in 1Q24.

Financial highlights

• Revenue per hl decreased by 1.5% year-over-year, impacted by negative geographic and channel mix.

• Revenue was USD 1,461 million, down 7.5% year-over-year; normalized EBITDA was USD 485 million, down 11.2%, with margin contracting by 140 bps to 33.2%.

• Normalized EBIT was USD 331 million, down 14.4%, with margin at 22.7%.

• Cost of sales per hl decreased by 1.5%, driven by commodity tailwinds and cost management.

• Normalized EPS was 1.78 cents USD, down from 2.26 cents USD in 1Q24.

Outlook and guidance

• Management remains cautious on China’s on-trade recovery, citing persistent low consumer confidence and macroeconomic headwinds.

• Inventory destocking in China is expected to normalize by the second half of 2025, aligning sell-in and sell-through.

• Focus remains on disciplined execution, value creation, and efficiency improvements, with continued investment in supply chain and commercial capabilities.

• Management is focused on premiumization, digital expansion, and disciplined cost control to drive sustainable growth.

• Cautions on forward-looking statements due to market uncertainties and evolving industry conditions.