百威亚太(01876) - 2020 - 中期财报

Financial Performance - Total sales volume for the first half of 2020 was 38,733 thousand liters, a decrease of 22.2% compared to 50,229 thousand liters in the first half of 2019[5] - Revenue for the first half of 2020 was $2,575 million, down 23.5% from $3,522 million in the same period of 2019[5] - Normalized EBITDA for the first half of 2020 was $694 million, reflecting a decline of 40.6% from $1,218 million in the first half of 2019[5] - The company reported a normalized net profit attributable to equity holders of $222 million for the first half of 2020, down from $651 million in the first half of 2019[5] - In Q2 2020, total sales volume was 25,961 thousand liters, a decrease of 6.1% from 28,113 thousand liters in Q2 2019[7] - Revenue for Q2 2020 was $1,619 million, down 10.2% from $1,916 million in Q2 2019[7] - Normalized EBITDA for Q2 2020 was $523 million, a decrease of 17.2% from $660 million in Q2 2019[7] - The gross profit margin for the first half of 2020 was 51.5%, down 241 basis points from 53.6% in the first half of 2019[5] - The normalized earnings per share for the first half of 2020 was 1.40 cents, compared to 5.25 cents in the first half of 2019[5] - In the first half of 2020, revenue in China decreased by 23.3% due to a 20.5% drop in sales volume and a 3.5% decline in revenue per hectoliter[20] - The normalized EBITDA decreased by 37.2% in the first half of 2020 and by 10.1% in Q2 2020, but showed significant recovery in profitability due to strong sales rebound and effective cost control measures[21] - Total sales decreased by 22.2% year-on-year in the first half of 2020, with a 6.1% decline in Q2 2020, primarily due to the impact of COVID-19 and last year's high base[29] - Revenue fell by 23.5% in the first half of 2020, with a 10.2% decline in Q2 2020, and revenue per hundred liters decreased by 1.7% and 4.4% respectively[30] - Normalized EBITDA decreased by 40.6% in the first half of 2020, with a margin of 27.0%, while the decline in Q2 2020 was reduced to 17.2% with a margin of 32.3%[36] - Net profit attributable to equity holders dropped from $606 million in the first half of 2019 to $185 million in the first half of 2020, mainly due to negative foreign exchange impacts[35] Cash Flow and Liquidity - The company maintained a strong balance sheet with approximately $1.3 billion in cash and cash equivalents as of June 30, 2020[13] - Operating cash flow for the first half of 2020 decreased by $312 million to $507 million, primarily due to a reduction in operating income cash flow[44] - Cash flow used in investing activities was $247 million in the first half of 2020, down from $360 million in the same period of 2019, mainly due to a decrease in capital expenditures[45] - Cash outflow from financing activities decreased by $815 million to $278 million in the first half of 2020, primarily due to reduced dividend payments[46] - Cash and cash equivalents amounted to $1,281 million as of June 30, 2020, compared to $952 million at the end of 2019[43] - The group has sufficient operating cash flow and unused borrowing facilities to fund its operations and ongoing investments[110] - The group aims to optimize its capital structure to enhance shareholder value while maintaining financial flexibility for strategic projects[111] - The net cash (cash minus debt) stood at $499 million as of June 30, 2020, down from $679 million as of December 31, 2019, indicating a decrease of about 26.6%[150] Cost Management and Operational Efficiency - The company implemented cost control measures that contributed to a reduction in selling, general, and administrative expenses in the first half of 2020[32] - The company incurred additional costs of $6 million related to COVID-19, including expenses for masks and sanitizers[37] - The company experienced a strong recovery in its China operations, while its Korean business continued to improve amid the ongoing impacts of COVID-19[169] - Budweiser APAC's performance was affected by the ongoing challenges in the market, leading to a focus on cost management and operational efficiency moving forward[175] Sustainability and Community Engagement - The company aims to reduce carbon emissions by 25% and achieve 100% renewable energy sourcing by 2025, with significant progress made in its breweries in China[16] - The company provided over 7.2 million liters of safe drinking water to more than 100,000 residents in Bangalore, India, through its partnership with WaterHealth India[16] - The company plans to ensure that 100% of its products use recyclable packaging or are primarily made from recycled materials by 2025[16] - The company continued to support local farmers and communities, providing guidance on best practices during the pandemic[16] Shareholder and Employee Relations - The company has adopted four share incentive plans, including a Long-Term Incentive Plan, Restricted Share Unit Plan, Share-Based Compensation Plan, and Employee Share Purchase Plan[60] - The Long-Term Incentive Plan allows for the grant of share options to eligible employees and directors, with a maximum share limit of 78,750,978 shares, representing approximately 0.59% of the issued share capital as of June 30, 2020[66] - The company emphasizes a performance-based culture, offering competitive salaries and variable incentive plans based on individual and business performance[60] - There were no significant labor disputes affecting the company's operations during the reporting period, indicating a respectful relationship with employee unions[58] Market and Product Development - The company launched new products in May 2020, including Bud Light and a lychee-flavored beer, to enhance its position in the premium segment[23] - The company’s strategy to focus on consumer-preferred brands and effective marketing channels is expected to support continued business expansion in China[23] - The company is exploring new product development and market expansion strategies to recover from the downturn and enhance its competitive position in the Asia-Pacific region[175] Governance and Compliance - The board has reviewed compliance with corporate governance codes and noted a deviation from code provision A.2.1 regarding the roles of the chairman and CEO[91] - The company has established its own trading code for directors, which is as stringent as the standard code for listed issuers[92] - The company maintained compliance with all debt covenants as of June 30, 2020[149] Financial Risks and Management - The group continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies during the reporting period[109] - The company is subject to income tax in multiple jurisdictions, with ongoing tax audits and inquiries affecting financial provisions[122] - Management's estimates and assumptions regarding contingent liabilities are crucial for the preparation of the financial statements[121] Goodwill and Impairment Testing - Goodwill accounted for approximately 44% of total assets as of June 30, 2020, and 45% as of December 31, 2019, with impairment testing conducted annually[118] - The company completed a goodwill impairment test in Q2 2020 and concluded that no impairment loss was necessary, with recoverable amounts exceeding carrying values by at least 50%[138] Shareholder Structure - Major shareholders include AB InBev Brewing Company (APAC) Limited, holding 11,550,938,000 shares, which is 87.22% of the total issued share capital[79] - The same percentage of 87.22% is held by multiple entities under AB InBev, indicating a strong control over the company[80]