BUD APAC(HK:01876)2025-02-25 23:00Sales Performance - Total sales volume for the fiscal year 2024 decreased by 8.8% to 84.811 million hectoliters, primarily impacted by weak performance in the Chinese market, partially offset by strong growth in Korea and India [5]. - In the fourth quarter of 2024, total sales volume and revenue decreased by 12.7% and 11.0%, respectively, significantly affected by performance in China, but partially offset by strong performance in Korea [15]. - For the fiscal year 2024, Budweiser Brewing Company APAC Limited reported a volume decline of 11.8%, attributed to weakened consumer spending and a focus on immediate consumption channels [23]. - Total sales volume for Q4 2024 was 13,613 thousand liters, a decrease of 12.7% compared to Q4 2023's 15,667 thousand liters [94]. - In Q4 2024, Budweiser Brewing Company APAC Limited reported a volume decline of 12.7% on an organic basis and 13.1% on a reported basis [99]. - For the fiscal year 2024, the company experienced an organic volume decline of 8.8% and a reported decline of 8.6% [99]. Revenue and Profitability - Revenue for the fiscal year 2024 declined by 7.0% to $6.246 billion, with a 2.0% increase in revenue per hectoliter, driven by revenue management initiatives in Eastern Asia and favorable product mix in various Asian countries [9][14]. - In the fourth quarter of fiscal year 2024, the company experienced a 17.0% decline in volume in the Western Asia Pacific region, with normalized EBITDA decreasing by 20.4% [20]. - The company maintained a net cash position of $2.9 billion at the end of fiscal year 2024, a decrease of $274 million from the end of fiscal year 2023 [18]. - The comprehensive income for 2024 was $56 million, significantly lower than $594 million in 2023 [42]. - The company reported a net profit of $750 million for 2024, a decrease of 14.77% compared to $880 million in 2023 [47]. - The company's operating cash flow for 2024 was $1,134 million, down 37.24% from $1,811 million in 2023 [49]. - Revenue for Q4 2024 was $1,142 million, down 11.0% from $1,293 million in Q4 2023 [94]. - Gross profit for Q4 2024 was $521 million, reflecting a decline of 14.0% from $617 million in Q4 2023 [94]. - The normalized profit attributable to equity holders decreased from $917 million in fiscal year 2023 to $778 million in fiscal year 2024 [11][14]. - The normalized effective tax rate increased from 33.5% in fiscal year 2023 to 35.3% in fiscal year 2024, primarily due to changes in the country mix [7]. Dividends and Shareholder Returns - The board proposed a final dividend of 5.66 cents per share for 2024, an increase from 5.29 cents in 2023, reflecting a 7% increase in total dividends [3][5]. - The board proposed a dividend of $750 million for fiscal year 2024, representing an increase of 7% compared to the previous year [18]. - The company plans to maintain or increase dividend amounts annually to maximize total shareholder returns [36]. - The company paid dividends of $698 million to Budweiser APAC shareholders in 2024, an increase of 39.6% from $500 million in 2023 [49]. Market Strategy and Growth Initiatives - The company plans to focus on product portfolio and channel selection to drive growth in 2025, alongside digitalizing marketing channels to create value [5]. - The company aims to leverage its strong market presence in Korea and India to counterbalance challenges faced in the Chinese market [13]. - The company aims to leverage its strong brand portfolio and marketing channels to regain market share growth in China, targeting the increasing middle-income households [33]. - The company views India as the next growth driver, focusing on premium and super-premium product categories [33]. - The company is committed to exploring suitable acquisition opportunities to accelerate growth in Southeast Asia and other markets [35]. Sustainability and Corporate Governance - The company aims for sustainability goals, including a 65% reduction in carbon emissions intensity per hectoliter compared to 2017 levels [19]. - The company emphasized its commitment to high standards of corporate governance, adhering to the corporate governance code, with one exception regarding the separation of roles between the chairman and CEO [79]. Financial Position and Assets - Total assets decreased to $14,778 million in 2024 from $16,234 million in 2023, a decline of approximately 8.9% [44]. - Total non-current liabilities decreased to $605 million in 2024 from $735 million in 2023, reflecting a reduction of 17.67% [45]. - Current liabilities also decreased to $3,933 million in 2024, down 15.43% from $4,649 million in 2023 [45]. - The total equity and liabilities of the company stood at $14,778 million in 2024, down from $16,234 million in 2023, reflecting a decrease of 8.93% [45]. Operational Metrics - Normalized EBITDA for the fiscal year 2024 decreased by 6.3% to $1.807 billion, with a normalized EBITDA margin increasing by 21 basis points to 28.9% [10][14]. - The normalized EBITDA margin for the total group was 28.9% in 2024, down from 29.5% in 2023 [59]. - The normalized diluted earnings per share (EPS) for 2024 was 5.85 cents, compared to 6.91 cents in 2023, reflecting a decline of about 15.3% [72]. - The effective tax rate increased from 34.4% in 2023 to 36.3% in 2024 [68]. - The company recognized other operating income of $115 million in 2024, compared to $107 million in 2023, reflecting an increase of approximately 7.5% [62].