Budweiser Brewing Company APAC Limited

For the first half of 2026, total APAC volumes decreased by 2.2%, revenue decreased by 1.4%, revenue per hectoliter increased by 0.8%, normalized EBITDA decreased by 8.9%, and normalized EBITDA margin contracted by 236 basis points. In Q2, total volumes decreased by 4.1%, revenue decreased by 2.1%, revenue per hectoliter increased by 2.1%, and normalized EBITDA decreased by 9.7%. Profit attributable to equity holders increased by 15.6% in the first half, helped by lap of nonrecurring items in 2025 and tax phasing. By market, China Q2 volumes fell 9.7%, revenue fell 8.6%, revenue per hectoliter rose 1.2%, and normalized EBITDA fell 16.9%; South Korea Q2 volumes increased by low teens and normalized EBITDA rose by strong double-digits with margin up 400 basis points; India delivered double-digit revenue growth in both Q2 and the first half, with double-digit volume growth in Q2. Management did not give quantified company-wide full-year guidance, but said it remains cautious on Q3 in China, expects continued brand investment in the second half, and flagged higher hedging-related cost pressure starting in H2 and into 2027.

Y.J. Cheng said the first half was still constrained by a slower-than-expected recovery in China, including weak on-premise consumption and adverse weather, but he emphasized that South Korea and India continued to gain momentum. He framed the strategy as stabilizing China volumes, rebuilding brand strength, and expanding the in-home channel, while maintaining confidence in the team and the long-term plan. His tone was cautious on near-term China demand but constructive about the markets that are growing.

Bernardo Novick laid out the key financials and tied the margin pressure mainly to China’s topline decline, higher marketing investment, and lower other operating income. He said the company has a 12-month hedging policy, so higher commodity costs such as aluminum will start to hit in the second half and some effects will carry into 2027, partially offset by barley and supply-chain efficiencies. He also said inventories in China are lower than last year but still above ideal, that the company is not ready to stop investing behind brands, and that capital allocation priorities remain organic growth first, selective M&A second, and shareholder returns third; he added it would be difficult to maintain dividends at current levels if results remain below expectations.

Analysts focused on China volume trends, the impact of weather and weak on-premise demand, and whether volumes could bottom in the second half. Management said July still showed weakness, it was difficult to foresee Q3 improvement in top and bottom line, and the priority is to stabilize volumes while continuing to invest behind brands. Questions also centered on margin outlook, hedging-driven cost pressure, and dividends; management said higher input costs will flow through with a delay, margins may stay under pressure in China because of ongoing investment, and dividend levels could come under pressure if performance does not improve. On Korea, management highlighted share gains, a better first-half read than the quarterly phasing suggests, and growth in nonalcoholic, flavor and RTD offerings such as Cass 0.00 and Nutrl.