Financial Data and Key Metrics Changes - In the full year 2025, total volumes decreased by 6% and net revenue declined by 6.1% [6][12] - Normalized EBITDA decreased by 9.8%, with a normalized EBITDA margin contraction of 113 basis points [6] - In Q4 2025, total volumes decreased by 0.7%, with revenue and revenue per hectoliter decreasing by 4.2% and 3.5%, respectively [6] Business Line Data and Key Metrics Changes - In APAC West, volumes decreased by 6.7%, with revenue and revenue per hectoliter decreasing by 8.2% and 1.5%, respectively [7] - In China, volumes decreased by 3.9% in Q4, with revenue per hectoliter decreasing by 7.7%, resulting in an 11.4% revenue decline [7] - In India, strong double-digit revenue growth was delivered, with the Premium and Super Premium portfolio representing over two-thirds of total revenue [10] Market Data and Key Metrics Changes - In APAC East, volumes decreased by 1.3%, while revenue and revenue per hectoliter increased by 1.3% and 2.5%, respectively [10] - In South Korea, volumes decreased by low single digits, but revenue remained flat due to ongoing revenue management initiatives [11] Company Strategy and Development Direction - The company is focusing on enhancing in-home go-to-market strategies, enriching its portfolio, and innovating behind mega brands to rebuild momentum and reignite growth [4] - Strategic priorities for 2026 include increasing commercial investments in China to prioritize top-line growth over profitability [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the performance in China was below potential, but there are signs of stabilization in the industry [4][15] - The company is optimistic about the upcoming World Cup as a potential boost for industry demand [28] Other Important Information - The company maintained a strong balance sheet with a net cash position above $2.8 billion and recommended a dividend of $750 million for 2025 [12] - The company is actively managing inventory levels, which are lower than the previous year, to ensure a healthy route to market [65] Q&A Session Questions and Answers Question: What are the latest demand trends in China? - Management indicated that the industry shows signs of stabilization, but on-trade recovery has not yet been significant [15] Question: Will the shareholder reward policy be reviewed with a new CEO? - Management confirmed that the rigorous review process for dividends will remain intact, and it is too early to discuss changes to the policy [20] Question: What will be done differently in 2026 to turn around the business in China? - The focus will be on reigniting growth and rebuilding volume momentum, with significant emphasis on commercial investments [25][31] Question: How is the company managing inventory levels in China? - The company has proactively adjusted inventory levels, which are now lower than the previous year, ensuring a better position going into the Chinese New Year [65] Question: What is the pricing trend in China for 2026? - The company aims to maintain pricing discipline while investing to lead and grow the category, with a favorable brand mix contributing to revenue [72]

Financial Data and Key Metrics Changes - In the full year 2025, total volumes decreased by 6% and net revenue declined by 6.1% [6][12] - Normalized EBITDA decreased by 9.8% with a margin contraction of 113 basis points [6] - In Q4 2025, total volumes decreased by 0.7%, with revenue and revenue per hectoliter decreasing by 4.2% and 3.5% respectively [6] Business Line Data and Key Metrics Changes - In APAC West, volumes decreased by 6.7%, with revenue and revenue per hectoliter decreasing by 8.2% and 1.5% respectively [7] - In China, volumes decreased by 3.9% in Q4, with revenue per hectoliter down by 7.7%, leading to an 11.4% revenue decline [7] - In India, strong double-digit revenue growth was achieved, with the Premium and Super Premium portfolio representing over two-thirds of total revenue [10] Market Data and Key Metrics Changes - In APAC East, volumes decreased by 1.3%, while revenue and revenue per hectoliter increased by 1.3% and 2.5% respectively [10] - In South Korea, volumes decreased by low single digits, but revenue remained flat due to ongoing revenue management initiatives [11] Company Strategy and Development Direction - The company aims to enhance its in-home go-to-market strategy, enrich its portfolio, and innovate behind its mega brands to reignite growth [4] - Focus on expanding market share in India and South Korea while addressing challenges in China [4] - The company plans to increase commercial investments in China to prioritize top-line growth over profitability in 2026 [32] Management's Comments on Operating Environment and Future Outlook - Management noted that the performance in China was below potential, but there are signs of stabilization and initial improvement in Q4 2025 [15][17] - The company is optimistic about leveraging the World Cup as a platform for growth in 2026 [29] - Management emphasized the importance of maintaining a strong balance sheet and disciplined financial practices [12] Other Important Information - The company maintained a net cash position above $2.8 billion and recommended a dividend of $750 million for 2025, consistent with the previous year [12] - The company is focusing on premiumization and expanding its presence in the instant retail channel [39][40] Q&A Session Questions and Answers Question: What is the latest demand trend in China and any updates on Chinese New Year preparation? - Management indicated that the industry shows signs of stabilization, but on-trade demand recovery has not been significant yet [15][17] Question: Will the shareholder reward policy be reviewed with a new CEO? - Management confirmed that the rigorous review process for dividends will remain intact, and it is too early to discuss changes to the dividend policy [20] Question: What will be done differently in 2026 to turn around the business in China? - The priority remains to reignite growth and rebuild volume momentum, with a focus on enhancing execution in key channels [25][26] Question: How is the current level of channel inventory in China? - Management stated that inventory levels are lower than the previous year, and they expect to enter the Chinese New Year in a better position [66] Question: How will pricing trends look in China for 2026? - Management emphasized maintaining pricing discipline while continuing to invest in leading and growing the category [72]

Financial Data and Key Metrics Changes - In full year 2025, total volumes decreased by 6% and net revenue declined by 6.1% [5][6] - Normalized EBITDA decreased by 9.8% with a margin contraction of 113 basis points [5] - In Q4 2025, total volumes decreased by 0.7%, with revenue declining by 4.2% and revenue per hectoliter down by 3.5% [5][6] - Normalized EBITDA for Q4 decreased by 24.7%, with a margin contraction of 425 basis points [5] Business Line Data and Key Metrics Changes - In APAC West, volumes decreased by 6.7%, with revenue and revenue per hectoliter down by 8.2% and 1.5% respectively [6] - In China, Q4 volumes decreased by 3.9% and revenue per hectoliter decreased by 7.7%, leading to an 11.4% revenue decline [7] - In India, strong double-digit revenue growth was achieved, with the Premium and Super Premium portfolio representing over two-thirds of total revenue [10] - In APAC East, volumes decreased by 1.3%, while revenue and revenue per hectoliter increased by 1.3% and 2.5% respectively [10] Market Data and Key Metrics Changes - In South Korea, volumes decreased by low single digits, but revenue remained flat due to ongoing revenue management initiatives [11] - The non-alcoholic beer and flavored beer segments are performing well in South Korea, indicating a shift in consumer preferences [58] Company Strategy and Development Direction - The company aims to enhance its in-home go-to-market strategy, enrich its portfolio, and innovate behind its mega brands to reignite growth [4] - Focus on expanding the in-home and O2O channels, with significant investments in marketing campaigns and innovations [8][9] - The company plans to prioritize top-line growth in China, potentially increasing commercial investments at the expense of short-term profitability [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that performance in China was below potential, but sees signs of stabilization and initial improvement in Q4 2025 [16][18] - The company is optimistic about the impact of the World Cup on industry demand and plans to leverage this event for brand activation [28] - Management emphasizes the importance of maintaining a strong balance sheet and disciplined financial practices, with a dividend recommendation of $750 million for 2025 [12] Other Important Information - The company continues to invest in its mega brands and has launched several innovative marketing initiatives, including collaborations with popular cultural events [11][12] - The net cash position at the end of 2025 was above $2.8 billion, reflecting a decrease of $39 million from the previous year [12] Q&A Session Summary Question: What is the latest demand trend in China and any updates on Chinese New Year preparations? - Management noted that the industry shows signs of stabilization, but on-trade demand recovery has not been significant yet [16][18] Question: Will the shareholder reward policy be reviewed with the new CEO? - Management confirmed that the rigorous review process for dividends will remain intact, and it is too early to discuss changes to the policy [20] Question: What will be done differently in 2026 to turn around the business in China? - The focus will be on reigniting growth and enhancing execution in key channels, with a strong emphasis on innovations and marketing campaigns [25][26] Question: How will the company manage inventory levels in China? - Management stated that inventory levels are lower than the previous year, and they will continue to manage inventories attentively [65] Question: What is the pricing trend expected in China for 2026? - The company aims to maintain pricing discipline while investing in brand growth, with a favorable brand mix contributing positively to revenue [70][71]

Financial Data and Key Metrics Changes - In the first nine months of 2025, total volumes decreased by 7%, revenue decreased by 6.6%, while revenue per hectoliter increased by 0.4% [7] - Normalized EBITDA decreased by 7.7%, and the normalized EBITDA margin contracted by 37 basis points [7] - In the third quarter, total volumes and revenue decreased by 8.6% and 8.4%, respectively, with normalized EBITDA decreasing by 6.9% but the normalized EBITDA margin expanding by 46 basis points [7] Business Line Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 7.9% and 8.7%, respectively, with normalized EBITDA decreasing by 9.7% [8] - In China, volumes in the third quarter decreased by 11.4%, revenue decreased by 15.1%, and revenue per hectoliter decreased by 4.1% [8] - In APAC East, volumes decreased by 0.5%, while revenue and revenue per hectoliter increased by 1.8% and 2.3%, respectively [12] Market Data and Key Metrics Changes - In India, the company delivered double-digit revenue growth in the third quarter, translating into strong EBITDA performance [11] - In South Korea, volumes were flattish, with revenue and revenue per hectoliter both growing by mid-single digits [12] Company Strategy and Development Direction - The company is focused on improving top-line performance by enhancing route-to-market strategies, increasing investment in mega brands, and leading innovation within the industry [9] - The strategy includes expanding the in-home channel and premiumizing the product offerings to capture growth opportunities [9][10] - The company aims to restore excellence in execution and improve market share momentum [4][5] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in China due to a soft economic cycle but emphasized a clear view of improvement opportunities [4] - The company remains committed to operational excellence and is optimistic about long-term growth despite current market conditions [5][11] Other Important Information - The company continues to leverage technology to enhance commercial capabilities and optimize route-to-market strategies [11] - The performance in South Korea and India has been solid, with ongoing investments in marketing and product innovation [11][12] Q&A Session Summary Question: Insights on brand performance in China - Management highlighted the importance of aligning brand performance with channel strategies, particularly focusing on in-home consumption and innovations [18][20] Question: Demand trends in Korea - Management noted that while the overall industry remains soft, there are pockets of growth in non-alcoholic and flavored beers, and the company is well-positioned to capture these opportunities [25][27] Question: Outlook for the China market - Management confirmed proactive inventory management and a focus on maintaining healthy route-to-market strategies, with expectations for gradual improvements [30][31] Question: In-home channel penetration - Management indicated that the in-home channel currently accounts for over 50% of their mix, with plans to increase this closer to the industry average [32][34] Question: Branding strategy for Harbin - Management expressed confidence in the Harbin brand's ability to compete nationally, particularly in Guangdong, and emphasized the need for a diverse portfolio to meet local consumer needs [39][42] Question: Commercial investment allocation - Management stated that investments are being sustained in both on-trade and off-trade channels, with a shift towards in-home channels as consumer preferences evolve [66][68] Question: Updates on Korean customs tax dispute - Management confirmed that the dispute is ongoing, with non-underlying charges recorded, but emphasized that the potential penalty exposure is not expected to be material [72][74]

Core Viewpoint - The company reported a decline in revenue and profitability for the first half of 2025, with a total revenue of $3.14 billion, a normalized EBITDA of $980 million, and a normalized net profit of $470 million, reflecting year-on-year decreases of 7.7%, 10.6%, and 14.1% respectively [1] Group 1: Financial Performance - In Q2 2025, the company achieved a revenue of $1.68 billion, with a year-on-year decline of 4.6% in reported terms and 3.9% in organic terms [1] - The normalized EBITDA for Q2 2025 was $500 million, showing a year-on-year decrease of 5.7% in reported terms and 4.5% in organic terms [1] - The normalized net profit for Q2 2025 was $240 million, reflecting a year-on-year decline of 6.3% [1] Group 2: Regional Performance - In the Asia-Pacific West region, revenue declined by 2.7% year-on-year in Q2 2025, while normalized EBITDA showed a 1.4% organic growth due to a low base effect [1] - The China region continued to experience inventory reduction, with a revenue decline of 6.4% year-on-year in Q2 2025, driven by policy impacts and a focus on inventory reduction [1] - The Indian market showed strong growth in high-end and ultra-high-end products, offsetting the weak demand in China, contributing to a more stable performance in the Asia-Pacific West region [1] Group 3: Future Outlook - The company expects to continue its inventory adjustment in Q3 2025, with a potential return to normal growth in Q4 2025 due to low base effects [3] - The non-current drinking channel in China is being expanded, with high-end and ultra-high-end products gaining a larger share compared to current drinking channels [3] - The Indian region is anticipated to maintain its growth momentum, with double-digit growth in high-end and ultra-high-end products [3]

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (01876.HK) with a target price of HKD 10 [1]. Core Insights - The company reported a total revenue of USD 3.14 billion for H1 2025, showing a year-on-year decline of 7.7% [1]. - Normalized EBITDA for the same period was USD 980 million, reflecting a decrease of 10.6% year-on-year [1]. - The normalized net profit attributable to shareholders was USD 470 million, down 14.1% compared to the previous year [1]. - In Q2 2025, total revenue was USD 1.68 billion, with a year-on-year decline of 4.6% [1]. - The report highlights ongoing inventory reduction and pragmatic adjustments in operations [1]. Financial Performance Summary - For 2024A, total revenue is projected at USD 6.246 billion, with a year-on-year growth rate of -9.0% [2]. - The net profit attributable to shareholders for 2024A is estimated at USD 726 million, reflecting a decline of 14.8% year-on-year [2]. - The earnings per share (EPS) for 2024A is expected to be USD 0.05, with a price-to-earnings (P/E) ratio of 19 [2]. - The company’s total market capitalization is approximately HKD 109.4 billion [3]. Regional Performance Insights - In the Asia Pacific West region, revenue declined by 2.7% year-on-year in Q2 2025, while normalized EBITDA showed a slight increase of 1.4% [6]. - The Asia Pacific East region experienced a revenue drop of 8.4% year-on-year in Q2 2025, primarily due to a high base effect and preemptive price increases [6]. - The report anticipates continued adjustments in Q3, with a potential return to stable growth in Q4 due to low base effects [6]. Future Outlook - The report projects a recovery in growth rates for Q4 2025, driven by ongoing adjustments and inventory management strategies [6]. - The normalized net profit forecasts for 2025, 2026, and 2027 are USD 762 million, USD 823 million, and USD 871 million respectively, corresponding to P/E ratios of 18, 17, and 16 [6].

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (01876.HK) with a target price of HKD 10, while the current price is HKD 8.66 [2][6]. Core Insights - The company reported a total revenue of USD 6.246 billion and normalized EBITDA of USD 1.807 billion for the year 2024, reflecting a year-on-year decline of 7.0% and 6.3% respectively. The normalized net profit attributable to shareholders was USD 778 million, showing a decrease of 15.2% [2][7]. - The fourth quarter results showed revenue and normalized EBITDA of USD 1.142 billion and USD 228 million respectively, with a year-on-year decline of 11.0% and 7.2% [2][7]. - The company plans to distribute a dividend of USD 750 million, which is a 7% increase, resulting in a payout ratio of 103.25% [2]. Financial Performance Summary - For the fiscal year 2024, Budweiser APAC's total sales volume decreased by 8.8%, with a significant decline in the Chinese market, where sales volume and price per ton saw year-on-year declines of 11.8% and 1.4% respectively [6][7]. - The company experienced a mixed performance across regions, with the Asia Pacific West region facing challenges while the Asia Pacific East region showed strong growth, particularly in South Korea [6][7]. - The overall gross margin for 2024 was 50.4%, with a slight year-on-year increase of 0.6 percentage points [6][7]. Future Outlook - Looking ahead to 2025, the company aims to prioritize market share recovery and has implemented significant management changes to drive this strategy. The new leadership is expected to bring renewed energy to the company's operations [6][7]. - The company plans to enhance its product offerings and increase marketing expenditures, particularly in key regions such as Fujian and Guangdong [6][7]. - The projected net profit for 2025 is adjusted to USD 815 million, with a corresponding PE ratio of 18 times [6][7].