BUD APAC(HK:01876)2025-04-16 08:34Financial Performance - In 2024, Budweiser APAC experienced a mixed year, with strong growth in South Korea and India offsetting weak performance in China, where sales were impacted by reduced consumer spending and foot traffic in on-premise channels[6]. - For 2024, Budweiser APAC reported revenue of $6,246 million, reflecting a normalized EBITDA growth of -6.3%[13]. - Total sales decreased by 8.8% to 848.11 million liters in FY2024, compared to 927.67 million liters in FY2023[22]. - Revenue fell by 7.0% to $6.246 billion in FY2024, down from $6.856 billion in FY2023[22]. - Normalized EBITDA decreased by 6.3% to $1.807 billion, with a normalized EBITDA margin of 28.9%, a decline of 21 basis points[22][24]. - In Q4 2024, total sales and revenue decreased by 12.7% and 11.0%, respectively, influenced by performance in China but partially offset by strong performance in Korea[25]. - In China, sales decreased by 18.9% in Q4 2024, with revenue down 20.1% due to inventory reduction and unfavorable channel mix[28]. - The company maintained a strong balance sheet with a net cash position of $2.9 billion, a decrease of $274 million from FY2023[25]. - The board proposed a dividend of $750 million for FY2024, representing an increase of 7% from the previous year[25]. Market Performance - In South Korea, Budweiser APAC achieved its highest market share in over a decade, with double-digit revenue growth and high single-digit revenue per hectoliter growth driven by effective revenue management and a strong brand portfolio[6]. - In India, the high-end and super premium product portfolio grew nearly 20%, solidifying the country as one of Budweiser's top four global markets[7]. - The number of distribution cities for the Budweiser brand expanded from 220 in 2023 to 235 in 2024, enhancing market presence[29]. - High-end and super high-end product revenue in India grew nearly 20% in both Q4 2024 and FY2024, solidifying its position as one of Budweiser's top four global markets[30]. - Cass Light "Zero Sugar" beer sales increased by over 30%, making it one of the top three local beers in the non-immediate consumption channel[33]. Sustainability Initiatives - The company increased its carbon-neutral breweries in China from three to six, including new facilities in Ziyang, Zhangzhou, and Jinshiba, as part of its sustainability goals[7]. - Budweiser APAC reduced its operational carbon emissions intensity by approximately 65% per hectoliter compared to 2017, and water usage per hectoliter decreased from 2.03 hectoliters in 2023 to 1.89 hectoliters in 2024, a 37% reduction from 2017[7]. - The company aims for a 25% reduction in greenhouse gas emissions per hectoliter produced by 2025 compared to 2017 levels[71]. - The company achieved a 32% reduction in carbon emissions intensity across its entire value chain compared to the 2017 baseline[71]. - 100% of the electricity purchased by the company comes from renewable sources[71]. - The company aims to achieve zero wastewater discharge in production facilities[74]. - The company collaborates with local governments and organizations to improve water resource accessibility in communities[74]. - 100% of product packaging is recyclable or contains at least 50% recycled materials, with 63.4% of packaging using recyclable materials and primarily containing recycled content[77][78]. - 100% of direct farmers are skilled, well-connected, and receive financial support, ensuring sustainable agricultural practices[79]. Leadership and Governance - The CEO, Mr. Yang, will step down on April 1, 2025, after seven years in the role, with Mr. Cheng taking over, who has extensive experience within the AB InBev Group[9]. - The new CEO, Cheng Yanjun, will take over on April 1, 2025, bringing over 40 years of experience in the beverage industry[106]. - The company has a clear succession plan, with the current CEO, Yang Ke, stepping down in 2025[103]. - The board consists of a balanced mix of executive and non-executive directors, with seven members during the reporting period[100]. - The company has established a robust governance framework to integrate sustainability principles into its operations[66]. - The board is focused on maintaining transparency and constructive communication among its members[96]. - The company emphasizes its commitment to corporate governance with various committees, including audit, risk, and compensation committees, ensuring oversight and accountability[129]. - The board's diversity policy considers factors such as gender, age, cultural background, and professional experience to enhance decision-making quality[141]. - The board includes independent directors with extensive experience in finance and corporate governance, such as Mr. Guo Peng, who has held significant positions in Swire Group and Cathay Pacific[132]. Risk Management - The risk committee evaluates the company's risk tolerance and monitors the implementation of mitigation measures[99]. - The company has a robust framework for risk management and compliance, led by experienced professionals in the finance and legal sectors[134]. - The audit and risk committee supervises the financial reporting system, internal controls, and risk management[184]. - The group plans to review its internal controls, risk management updates, and compliance with tax and legal matters[186]. Employee and Community Engagement - 100% of full-time employees have received training, averaging 47 hours of training per employee[82]. - The company promotes a culture of safety with a focus on zero-risk exposure and regular safety training sessions[83]. - The company emphasizes responsible marketing and communication standards to promote moderate drinking among consumers[85]. - The company is expanding its non-alcoholic and low-alcohol product offerings to provide consumers with more choices for moderate drinking[85]. - 23 responsible drinking projects launched in the Asia-Pacific region, with 675,210 kilograms of limes sold through the "Corona Select Lime" project in 2024[85].