Budweiser Brewing Company APAC (1876) Q2 2025 earnings summary

Executive summary

• Revenue for 1H25 declined 5.6% year-over-year to $3,136 million, with volumes down 6.1% due to weakness in China, partially offset by growth in India.

• Normalized EBITDA fell 8.0% to $983 million, with margin contracting by 82 bps to 31.3%.

• Profit attributable to equity holders dropped to $409 million, impacted by non-underlying income taxes from internal restructuring.

• No interim dividend was declared for 1H25.

• Strategic focus on mega-brands, premiumization, in-home channel expansion, and disciplined execution to drive long-term growth amid challenging market conditions.

Financial highlights

• Revenue: $3,136M (down 5.6% YoY); gross profit: $1,613M (down 4.9% YoY); cost of sales decreased 6.4% to $1,523M.

• Normalized EBITDA: $983M (down 8.0% YoY); margin contracted by 82 bps to 31.3%.

• Normalized EBIT: $679M (down 9.6% YoY); margin at 21.7%.

• EPS: 3.10¢ (down from 4.10¢); normalized EPS: 3.59¢ (down from 4.19¢).

• Net cash position at $2.4 billion as of June 30, 2025.

Outlook and guidance

• Continued volume headwinds expected in China through Q3 due to on-premise softness and anti-extravagance policy; easier comps anticipated in Q4.

• Focus remains on mega-brand execution, in-home channel expansion, and premiumization to offset geographic and channel mix headwinds.

• South Korea expected to benefit from price increases, operational efficiencies, and premiumization for future margin recovery.

• India expected to sustain growth momentum, supported by premiumization and favorable regulatory changes.

• Management continues to invest in mega brands and premiumization, focusing on long-term growth despite current challenges.