BUD APAC(HK:01876)2025-05-07 23:00Sales Performance - Total sales volume for Q1 2025 was 19,741 million liters, a decrease of 6.1% compared to Q1 2024[13] - In Q1 2025, sales volume in China decreased by 9.2%, with inventory management measures accounting for approximately 25% of the decline[16] - Total sales volume for Q1 2025 decreased by 6.1% to 19,741 thousand liters compared to Q1 2024[39] - In the Asia-Pacific region, sales volume in the eastern region increased by 11.9% year-over-year, while the western region saw a decline of 8.6%[43] Revenue and Profitability - Revenue for Q1 2025 was $1,461 million, down 7.5% from $1,643 million in Q1 2024[8] - Revenue in China fell by 12.7%, while revenue per hundred liters decreased by 3.9%[16] - Total revenue for Q1 2025 was $1,461 million, compared to $1,643 million in Q1 2024, reflecting a decline of 11.1%[42] - Normalized net profit attributable to equity holders was $235 million, down from $297 million in Q1 2024[10] - The net profit for Q1 2025 was $242 million, down from $293 million in Q1 2024, representing a decrease of 17.4%[42] EBITDA and Operating Profit - Normalized EBITDA for Q1 2025 was $485 million, reflecting an 11.2% decrease from $572 million in Q1 2024[9] - Normalized EBITDA decreased by 17.1% due to revenue performance and operational deleveraging[16] - Normalized EBITDA for Q1 2025 dropped by 14.4% to $331 million, down from $408 million in Q1 2024[39] - The normalized operating profit (EBIT) for Q1 2025 was $331 million, compared to $408 million in Q1 2024, a decline of 18.9%[42] Cost and Margin Analysis - Cost of sales for Q1 2025 was $716 million, a reduction of 7.5% compared to the previous year[6] - The gross profit margin for Q1 2025 was 51.0%, slightly down from 51.5% in Q1 2024[13] - The normalized EBITDA margin for Q1 2025 was 33.2%, down 140 basis points from 34.8% in Q1 2024[39] - The company reported a normalized operating margin of 33.2% for Q1 2025, down from 34.8% in Q1 2024[42] Market Challenges and Strategies - The company faced challenges in the Chinese market due to unfavorable regional and channel mix, impacting sales performance[12] - The company remains focused on its brand portfolio, marketing channels, and agile team to navigate the current market environment[5] - The company launched a new packaging design for Budweiser in March 2025 to attract a new generation of adult consumers[16] - In Q1 2025, the sales of zero-sugar Harbin Ice Pure increased by approximately 70%, connecting with health-conscious young adults[16] - The company’s marketing resources were increased for Budweiser and Harbin to strengthen brand power and market share[16] Financial Overview - The financial data presented is normalized to exclude the effects of currency conversion and scope changes related to acquisitions and divestitures[38] - The financial performance metrics are based on internal records and are not independently audited[38] - The effective tax expense for Q1 2025 was $95 million, compared to $117 million in Q1 2024, indicating a reduction in tax burden[42] Company Background - The company operates in two geographical segments: Eastern Asia Pacific (mainly Korea, Japan, and New Zealand) and Western Asia Pacific (China, India, Southeast Asia, and exports)[41] - The company employs over 21,000 staff across 47 breweries in the Asia Pacific region[36] - The company is a subsidiary of Anheuser-Busch InBev, which has over 600 years of brewing history[36]