BUD APAC(HK:01876) Hua Xia Shi Bao·2025-08-03 07:48Core Insights - Budweiser APAC continues to face declining performance with no signs of recovery, as evidenced by a decrease in sales, revenue, and net profit in the first half of 2025 compared to the previous year [4][6] - The company is experiencing significant challenges in the Chinese market, where both sales and revenue have shown negative growth [6][7] - Budweiser APAC's strategy shift towards the 8-10 RMB price segment is hindered by strong competition from established players like Yanjing Beer and China Resources Beer [4][8] Financial Performance - In the first half of 2025, Budweiser APAC reported sales of 4.363 billion liters, a year-on-year decrease of 6.3%, with revenue at $3.136 billion, down 7.7%, and net profit at $409 million, down 24.4% [6] - The company's revenue from the Asia-Pacific West region, which includes China, India, and Vietnam, was $2.522 billion, a decrease of 8.3%, accounting for 80.4% of total revenue [6] Market Challenges - The Chinese market's performance remains weak, with a 8.2% decline in sales and a 10.2% drop in net revenue in the first half of 2025 [7] - The decline is attributed to a combination of overall industry demand weakness, increased competition, and over-reliance on the struggling nightlife and dining channels [7][8] - The new CEO, Cheng Yanjun, acknowledged that regional layout and channel weaknesses have impacted business performance [7] Strategic Adjustments - Budweiser APAC is shifting its focus from super-premium products to the core++ segment (8-10 RMB products) in response to changing consumer trends [8] - The company aims to enhance its presence in the non-drinking channel and strengthen its marketing efforts for brands like Harbin Beer [9] - Despite entering the 8-10 RMB market later than competitors, there are still opportunities for Budweiser APAC to capture market share through strategic brand positioning [9] Competitive Landscape - The high-end beer market in China is increasingly competitive, with brands like China Resources Beer and Qingdao Beer gaining market share [10] - Budweiser APAC plans to maintain its focus on flagship brands and invest in marketing to counteract competitive pressures [10][11] - Analysts suggest that Budweiser APAC should leverage its core brand strengths and explore new channels like e-commerce to meet consumer demands [11]