Budweiser Brewing Company APAC Limited

For the first half of 2026, total APAC volumes decreased 2.2%, revenue decreased 1.4%, revenue per hectoliter increased 0.8%, normalized EBITDA decreased 8.9%, and normalized EBITDA margin contracted 236 basis points. In Q2, total volumes decreased 4.1%, revenue decreased 2.1%, revenue per hectoliter increased 2.1%, and normalized EBITDA decreased 9.7%. Profit attributable to equity holders of Bud APAC increased 15.6% in H1, helped by lapping nonrecurring items in 2025 and tax phasing. For guidance, management did not give numeric full-year targets; instead it said China remains in investment mode, that it expects those investments to continue in H2, that margins may stay under pressure in China, and that it is difficult to foresee improvement in Q3 top and bottom line. They also said recent commodity inflation will hit with a delay because of the 12-month hedging policy, with some effects starting in H2 and into 2027.

Y.J. Cheng said the quarter reflected a slower-than-expected recovery in China, with bad weather and weakness in on-premise channels weighing on both top and bottom line. He emphasized that South Korea and India continued to rebuild momentum through strong execution, market share gains, and growth in Premium and Super Premium offerings. His tone was cautious on China but constructive on the company’s long-term brand and channel strategy, especially the in-home and O2O expansion.

Bernardo Novick detailed the numbers: H1 volumes down 2.2%, revenue down 1.4%, revenue per hectoliter up 0.8%, normalized EBITDA down 8.9%, and margin down 236 bps; Q2 volumes down 4.1%, revenue down 2.1%, revenue per hectoliter up 2.1%, and normalized EBITDA down 9.7%. He said China Q2 volumes fell 9.7% and revenue 8.6%, while South Korea delivered low-teens volume growth in Q2 and mid-single-digit EBITDA growth in H1, and India generated double-digit revenue growth in both Q2 and H1. On capital allocation, he said organic growth remains priority one, selective M&A is number two, and returning cash to shareholders is number three; he also warned that if results stay below expectations, it would be difficult to maintain dividends at current levels.

Analysts pressed on China demand, weather disruptions, on-trade weakness, inventory levels, pricing, margin pressure, and whether management might pivot strategically. Management said China still saw weakness in July, the priority is to stabilize volumes, and it is too early to expect Q3 improvement; they also said inventories are below last year but not yet ideal, with more adjustment possible in H2. On pricing, they said they are aware of competitive increases in some regions and packs, but have no price hikes to announce and are still focused on volume stabilization and brand investment. On margins, they explained that China investment, higher marketing spend, and delayed commodity cost inflation from the 12-month hedge will pressure margins, while Korea and India help offset some of that pressure.