Core Viewpoint - Budweiser APAC shows signs of recovery under new leadership, with a focus on brand revitalization and channel expansion in the Chinese market [1][3][4]. Financial Performance - For the first half of 2025, Budweiser APAC reported revenue of $3.136 billion, normalized EBITDA of $983 million, and sales volume of 4.363 million kiloliters, all showing declines compared to the previous year [2]. - Despite year-on-year declines of 5.6%, 8%, and 6.1% in revenue, EBITDA, and sales volume respectively, there is a noticeable improvement in the second quarter compared to the first quarter, indicating a potential stabilization [2][7]. Leadership Changes - In April, Cheng Yanjun took over as CEO, marking a strategic shift aimed at revitalizing Budweiser APAC's performance, particularly in the core Chinese market [3][8]. Market Strategy - The company is focusing on enhancing its core brands, Budweiser and Harbin Beer, and shifting towards non-immediate consumption channels to adapt to changing consumer preferences [3][11]. - Budweiser has introduced a new brand image and marketing strategies targeting younger consumers, including collaborations with sports events and social media campaigns [9][11]. Channel Expansion - Budweiser is increasing its investment in non-immediate consumption channels, such as supermarkets and e-commerce platforms, to counteract the decline in immediate consumption sales [12]. - The company has reported growth in sales and revenue from non-immediate channels, indicating a successful adjustment to market trends [12]. Competitive Landscape - Budweiser faces stiff competition in the Chinese market, where rivals are capturing market share with more localized strategies and appealing pricing [17]. - The company aims to regain market share in China, which is critical for its overall performance, as it continues to experience declines that exceed industry averages [17][18]. Future Outlook - The company’s ability to achieve positive year-on-year growth in key performance indicators in the second half of the year will be crucial for restoring investor confidence [18]. - Budweiser's headquarters remains optimistic about the Chinese market's recovery, with expectations for improved market conditions in the summer [18].

Core Viewpoint - Budweiser APAC shows signs of stabilization under new leadership, with a focus on improving performance in the Chinese market despite ongoing declines in revenue and profit [2][5][15]. Financial Performance - For the first half of 2025, Budweiser APAC reported revenue of $3.136 billion, normalized EBITDA of $983 million, and sales volume of 4.363 million kiloliters, all showing declines compared to the same period last year [2]. - Revenue, profit, and sales volume all decreased by 5.6%, 8%, and 6.1% respectively on a year-over-year basis, but there are signs of recovery compared to the first quarter of 2025 [2][5][11]. - In Q2 2025, normalized EBITDA decline narrowed to single digits, with revenue decline also improving, and revenue per hectoliter showing a year-over-year growth of 2.4% [5][13]. Strategic Initiatives - The new CEO, Cheng Yanjun, has continued the strategy initiated at the beginning of the year, focusing on Budweiser and Harbin beer brands while enhancing consumer engagement [6][15]. - Budweiser has launched a new brand image "Budweiser Red" and engaged in marketing campaigns linked to major sports events to attract younger consumers [7][10]. - The company is shifting resources from the ultra-premium market to the "core++" market to align with current consumer trends [7][15]. Market Dynamics - Budweiser is increasing its focus on non-immediate consumption channels, which have shown growth in both sales and revenue contributions [11]. - The company has partnered with convenience stores and online platforms to promote its products, responding to the shift in consumer behavior towards more cost-effective non-immediate consumption options [8][9][10]. - Despite the challenges, Budweiser's performance in the Indian market remains strong, with double-digit growth in high-end and ultra-high-end products [12]. Future Outlook - Budweiser aims to regain market share in China, which has been a key area of concern, as the company reported a 9.5% year-over-year decline in revenue and an 8.2% decline in sales volume in the first half of 2025 [15][16]. - The company's ability to turn key performance indicators positive in the second half of the year will be crucial for restoring investor confidence [15].