Budweiser Brewing Company APAC (1876) Q4 2024 earnings summary

Executive summary

• 2024 saw mixed results: softness in China due to weak consumer sentiment and negative channel mix, offset by robust growth in South Korea and India.

• CEO Jan Craps announced his departure, with YJ Cheng to succeed him as CEO and Co-Chair from April 1, 2025.

• Board recommended a final dividend of USD 750 million (5.66 cents/share), a 7% increase year-over-year, subject to shareholder approval.

• Sustainability progress included doubling carbon-neutral breweries in China and significant reductions in carbon emissions and water usage.

Financial highlights

• FY24 revenue declined 7.0% year-over-year to USD 6,246 million; revenue per hl grew 2.0%.

• Normalized EBITDA fell 6.3% to USD 1,807 million; margin increased by 21 bps to 28.9%.

• Cost of sales per hectoliter rose by 0.7%, mainly due to cost management and commodity tailwinds.

• Net cash position at year-end was USD 2.9 billion, down USD 274 million from FY23.

• Normalized profit attributable to equity holders dropped to USD 778 million from USD 917 million; normalized EPS decreased to 5.90 cents from 6.94 cents.

Outlook and guidance

• 2025 strategy in China centers on regaining market share, leveraging Budweiser, Core Plus Plus innovations, and digital route-to-market.

• Continued investment in South Korea to drive innovation and premiumization, with margin recovery expected.

• India positioned as the next growth engine, with emphasis on premiumization and market expansion.

• Commodity costs expected to be flattish to slightly up in 2025, with ongoing efficiency programs to offset impacts.

• Ongoing digitization and M&A opportunities in APAC to drive value creation.