Core Viewpoint - Budweiser Asia Pacific is facing unprecedented challenges in the Chinese market, marked by significant revenue and profit declines, layoffs, and a leadership change aimed at revitalizing the business [2][4][5]. Financial Performance - In 2024, Budweiser Asia Pacific reported revenues of $6.246 billion, a year-on-year decrease of 7%, and net profits fell by 14.8%, with total sales down by 8.8% [2][7]. - The fourth quarter saw even steeper declines, with total sales and revenue decreasing by 12.7% and 11.0%, respectively, due to inventory destocking [7]. Workforce Reduction - The company has reduced its workforce from over 28,000 employees at the end of 2019 to approximately 21,000 by the end of 2024, representing a 25% reduction [3][14]. - Reports suggest that Budweiser Asia Pacific plans to cut operational costs by 15% by further layoffs in 2025, although the company has denied these claims [2][14]. Leadership Change - In February 2024, Budweiser Asia Pacific appointed Cheng Yanjun, the first Chinese CEO, to replace Yang Ke, who had been with the company for 23 years [4][19]. - The leadership change is perceived as a strategic move to rejuvenate the company's performance in the Chinese market [4][19]. Market Position and Strategy - Budweiser's market share in the high-end beer segment has declined to around 40%, as competition from local brands like Yanjing and craft beers increases [11][12]. - The company has attempted to stabilize prices by raising the cost of certain products by 3 to 7 yuan per case, reflecting its struggle to maintain profitability [9][10]. Challenges Ahead - Analysts predict that the demand for beer in China will not see significant improvement by 2025, and Budweiser's high-end product mix may continue to hinder sales [19]. - The company is urged to focus on product innovation, channel restructuring, and organizational changes to create higher value with fewer resources [19].

Core Viewpoint - Budweiser APAC reported a significant decline in revenue, sales, and profitability for 2024, indicating challenges in the high-end beer market, particularly in China [1][3][10]. Financial Performance - For 2024, Budweiser APAC achieved revenue of $6.246 billion, down 7% year-on-year, with sales volume of 848.1 million liters, a decrease of 8.8% [1][9]. - Normalized EBITDA was $1.807 billion, reflecting a 6.3% decline compared to the previous year [1][9]. - The company's net profit attributable to shareholders was $726 million, down from $852 million [9]. Market Challenges - The Chinese market showed a significant downturn, with Budweiser's sales volume dropping by 11.8% in 2024, and a notable 18.9% decline in Q4 [10][14]. - The overall beer market in China saw a slight decrease in production, with Budweiser's performance lagging behind competitors like Chongqing Beer and Yanjing Beer [11][10]. Leadership Changes - CEO Jan Craps announced his departure after seven years, with Cheng Yanjun set to take over as CEO and co-chairman [3][17]. - Cheng has extensive experience within the company and aims to leverage his background to drive growth [17][18]. Strategic Focus - The new CEO is tasked with revitalizing growth, particularly by enhancing Budweiser's brand portfolio and marketing strategies in China [17][19]. - Budweiser plans to accelerate the development of non-drinking channels, which have shown potential for growth despite the overall market decline [19][20]. Competitive Landscape - Budweiser's premium positioning is under pressure as local competitors enhance their high-end offerings, narrowing the price gap [15][19]. - The company faces challenges in maintaining its market share amid changing consumer preferences and economic conditions [10][11].