百威亚太(01876) - 2024 Q1 - 季度业绩

Performance Summary Q1 2024 Key Financial Metrics Despite a 4.8% volume decrease and 0.4% revenue decline in Q1 2024, Budweiser APAC achieved 4.2% organic Normalized EBITDA growth and a 153 basis point margin expansion to 34.8% through premiumization and cost control Q1 2024 Key Performance Indicators | Metric | Q1 2024 | YoY Change (Organic) | | :--- | :--- | :--- | | Total Volume (hundred thousand liters) | 21,115 | -4.8% | | Revenue (USD million) | 1,643 | -0.4% | | Revenue Per HL Growth | N/A | +4.6% | | Normalized EBITDA (USD million) | 572 | +4.2% | | Normalized EBITDA Margin | 34.8% | +153 basis points | | Normalized Profit (USD million) | 297 | -1.0% | | Normalized EPS (cents) | 2.26 | -0.4% | - CEO Jan Craps stated that despite mild industry performance, the company achieved EBITDA growth and margin expansion, primarily driven by brand premiumization and revenue management across key markets, boosting net revenue per hectoliter[4] Management Commentary and Consolidated Results Management Commentary Management emphasized profit margin improvement in China, market share gains and strong EBITDA growth in South Korea, and double-digit revenue growth in India, driven by premiumization and effective revenue management - Management noted positive progress in key markets like China, South Korea, and India, particularly excelling in premiumization, market share, and profit margins[9] Consolidated Results Consolidated results indicate a 4.8% volume decrease but only a 0.4% revenue decline due to 4.6% revenue per hectoliter growth, with gross profit up 3.8% organically and Normalized EBITDA up 4.2%, expanding its margin to 34.8% Table 1. Consolidated Results (USD million) | Metric | Q1 2024 | Q1 2023 | Organic Growth | | :--- | :--- | :--- | :--- | | Total Volume (hundred thousand liters) | 21,115 | 22,075 | -4.8% | | Revenue | 1,643 | 1,702 | -0.4% | | Gross Profit | 846 | 854 | 3.8% | | Gross Margin | 51.5% | 50.2% | +206 basis points | | Normalized EBITDA | 572 | 580 | 4.2% | | Normalized EBITDA Margin | 34.8% | 34.1% | +153 basis points | | Normalized Profit Attributable to Equity Holders of Budweiser APAC | 297 | 300 | N/A | | Normalized Basic EPS (cents) | 2.26 | 2.27 | N/A | Business Review APAC West APAC West saw a 4.9% volume decrease and 1.5% revenue decline, yet product premiumization drove a 3.6% increase in revenue per hectoliter, leading to 2.0% Normalized EBITDA growth, with strong India market performance offsetting China's impact APAC West Performance | Metric | Organic Growth Rate | | :--- | :--- | | Volume | -4.9% | | Revenue | -1.5% | | Revenue Per HL | +3.6% | | Normalized EBITDA | +2.0% | China Market China market volume and revenue declined by 6.2% and 2.7% respectively due to a high base and unfavorable weather, yet premium product growth drove a 3.7% increase in revenue per hectoliter, 1.0% Normalized EBITDA growth, and a 145 basis point margin expansion, with BEES expanding to over 265 cities - Premiumization strategy yielded significant results: the combined volume share of premium and super-premium products increased by 2.5 percentage points, with innovative products like Budweiser Gold and Black achieving double-digit growth[13] - Brand activities and innovation: plans include launching Budweiser 0.0, Corona non-alcoholic and low-calorie beers, and strategic partnerships with NBA and Trip.com to connect with consumers and drive growth[13][15] - Digital transformation: The B2B platform BEES has expanded its coverage to over 265 cities, with the company focusing on leveraging technology to enhance commercial capabilities[13] India Market India's business continued to outperform peers, with both volume and revenue achieving double-digit growth, and premium and super-premium product portfolio revenue also recording double-digit growth, indicating strong momentum - India's business volume, revenue, and premium and super-premium product portfolio revenue all achieved double-digit growth, consistently outperforming the industry[16] APAC East APAC East volume decreased by 4.0%, but effective revenue management drove a significant 9.6% increase in revenue per hectoliter, leading to a 5.2% total revenue growth and a strong 18.7% Normalized EBITDA growth, with margin expanding by 334 basis points APAC East Performance | Metric | Organic Growth Rate | | :--- | :--- | | Volume | -4.0% | | Revenue | +5.2% | | Revenue Per HL | +9.6% | | Normalized EBITDA | +18.7% | South Korea Market South Korea market volume saw a mid-single-digit decline due to mild industry performance; however, effective revenue management led to high-single-digit revenue per hectoliter growth and mid-single-digit total revenue growth, with the company's overall market share increasing, including brands like Cass, HANMAC, and Stella Artois gaining share in retail and on-premise channels - Market share growth: Despite industry weakness, the company achieved an increase in its total market share in South Korea[17] - Product innovation: To cater to health trends, the company launched 'Zero Sugar' Cass low-calorie beer and permanently added the limited-edition Cass Lemon Squeeze to its product portfolio[17] Consolidated Financial Data Analysis Consolidated Income Statement The Q1 2024 consolidated income statement shows revenue of USD 1,643 million, a slight decrease, with gross profit at USD 846 million (3.8% organic growth), normalized operating profit at USD 408 million (3.9% organic growth), and profit attributable to equity holders at USD 287 million Table 2. Budweiser APAC Consolidated Income Statement (USD million) | Item | Q1 2024 | Q1 2023 | Organic Growth | | :--- | :--- | :--- | :--- | | Revenue | 1,643 | 1,702 | -0.4% | | Cost of Sales | (797) | (848) | 4.4% | | Gross Profit | 846 | 854 | 3.8% | | Normalized Operating Profit | 408 | 418 | 3.9% | | Profit for the Period | 293 | 305 | N/A | | Profit Attributable to Equity Holders of Budweiser APAC | 287 | 297 | N/A | Key Financial Items Analysis This quarter saw a 4.8% volume decrease, partially offset by a 4.6% increase in revenue per hectoliter, mitigating the impact on total revenue; cost of sales decreased by 4.4% due to productivity gains and cost efficiency, while selling, general and administrative expenses rose by 3.0% due to increased commercial investments - Volume decreased by 4.8%, primarily due to mild industry performance in the China and South Korea markets[19] - Revenue decreased by 0.4%, but revenue per hectoliter grew by 4.6% driven by premiumization[19] - Cost of sales decreased by 4.4%, benefiting from productivity improvements, cost efficiency management, and favorable commodity prices[20] - Selling, general and administrative expenses increased by 3.0%, primarily attributed to increased commercial investments[21] Profit and Earnings Per Share Profit attributable to equity holders of Budweiser APAC decreased from USD 297 million to USD 287 million; after adjusting for non-underlying items, normalized profit attributable was USD 297 million, slightly below USD 300 million last year; basic EPS was 2.18 cents, and normalized basic EPS was 2.26 cents, largely flat compared to 2.27 cents last year Table 4. Normalized Profit Reconciliation (USD million) | Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of Budweiser APAC | 287 | 297 | | Add: Non-underlying Items (after tax) | 10 | 3 | | Normalized Profit Attributable to Equity Holders of Budweiser APAC | 297 | 300 | Table 5a. Basic Earnings Per Share (cents) | Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Basic Earnings Per Share | 2.18 | 2.25 | | Normalized Basic Earnings Per Share | 2.26 | 2.27 | Reconciliation of Non-IFRS Measures Normalized EBITDA Reconciliation This section details the reconciliation from IFRS-based 'Profit Attributable to Equity Holders of Budweiser APAC' to 'Normalized EBITDA', a key management performance metric; in Q1 2024, Normalized EBITDA was USD 572 million, adjusted from USD 287 million profit by adding income tax, finance costs, depreciation, and amortization Table 6. Normalized EBITDA and Profit Attributable Reconciliation (USD million) | Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of Budweiser APAC | 287 | 297 | | Add: Non-controlling Interests | 6 | 8 | | Add: Income Tax Expense | 117 | 115 | | Less: Net Finance Income | (14) | (2) | | Add: Profit Before Tax Plus Non-underlying Items | 13 | 4 | | Normalized Profit Before Tax | 408 | 418 | | Add: Depreciation, Amortization and Impairment | 164 | 162 | | Normalized EBITDA | 572 | 580 | Appendices Appendix I: Organic Growth Calculation This appendix illustrates how organic growth data, used for performance analysis, is calculated from Q1 2023 reported results by excluding scope changes and currency translation impacts; in Q1 2024, currency translation had a USD 63 million negative impact on revenue and a USD 24 million negative impact on Normalized EBITDA Organic Growth Calculation (USD million) | Item | Q1 2023 Reported | Scope | Currency Translation | Organic Growth | Q1 2024 Reported | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,702 | 10 | (63) | (6) | 1,643 | | Normalized EBITDA | 580 | (8) | (24) | 24 | 572 | Appendix II: Segment Information This appendix presents key financial data by geographic segment (APAC East and West); APAC West is the primary revenue and profit source, contributing USD 1,352 million in revenue and USD 486 million in Normalized EBITDA in Q1 2024, while APAC East's Normalized EBITDA margin improved from 26.1% to 29.6% Segment Performance (Q1 2024) | Item (USD million) | APAC East | APAC West | Total | | :--- | :--- | :--- | :--- | | Revenue | 291 | 1,352 | 1,643 | | Normalized EBITDA | 86 | 486 | 572 | | Normalized EBITDA Margin | 29.6% | 35.9% | 34.8% | Appendix III: Organic and Reported Growth Figures This appendix compares organic and reported growth rates, visually demonstrating the impact of currency fluctuations on various metrics; for instance, Budweiser APAC's total revenue had an organic growth rate of -0.4%, while its reported growth rate, considering exchange rate impacts, was -3.5% Q1 2024 Growth Rate Comparison | Metric | Budweiser APAC (Organic) | Budweiser APAC (Reported) | China (Organic) | China (Reported) | | :--- | :--- | :--- | :--- | :--- | | Volume | -4.8% | -4.3% | -6.2% | -6.2% | | Revenue | -0.4% | -3.5% | -2.7% | -6.5% | | Normalized EBITDA | 4.2% | -1.4% | 1.0% | -3.2% | Other Information Sustainability The company made significant sustainability progress, achieving over 25% carbon reduction across its entire value chain in China, two years ahead of its 2025 climate action target, and showcased efforts in eco-friendly packaging and supplier low-carbon transition as an official partner of Shanghai Climate Week - The company achieved its 2025 climate action target in China two years ahead of schedule, with over 25% carbon reduction across its entire value chain[12] About the Company & Conference Call Budweiser APAC is the largest beer company in the Asia Pacific region, leading in premium and super-premium beer with over 50 brands including Budweiser, Stella Artois, and Corona; a conference call to discuss quarterly results is scheduled for May 8, 2024, at 11:30 AM HKT - The company is the largest beer company in the Asia Pacific region, operating in key markets including China, South Korea, and India, and listed on the Hong Kong Stock Exchange (Stock Code: 1876)[34] - The earnings conference call is scheduled for Wednesday, May 8, 2024, at 11:30 AM HKT[33]