Q2 2024 Budweiser Brewing Company APAC Ltd Earnings Call Transcript
Key Points
- Budweiser Brewing Co APAC Ltd (BDWBF) experienced strong growth in South Korea and India, which helped offset the negative impact of a soft industry in China.
- The company reported an expansion in EBITDA margin compared to the first half of the previous year, driven by gross margin improvements.
- Budweiser Brewing Co APAC Ltd (BDWBF) has successfully expanded its BEES digital platform to 300 cities, enhancing commercial capabilities and value creation.
- The company is making significant strides in sustainability, reducing water usage for beer production by 38% since 2017 and being recognized in the S&P Global's 2024 Sustainability China Yearbook.
- In India, the Premium and Super Premium portfolio grew by double digits, contributing more than two-thirds of the company's revenue in the region.
- Total volume and revenue decreased by 6.2% and 4.3% respectively, primarily due to a decline in the Chinese market.
- In China, volumes decreased by 10.3% in the second quarter, with revenue declining by 15.2% due to adverse weather and a soft industry.
- The company faced challenges in the APAC West region, with volumes, revenue, and normalized EBITDA all experiencing declines.
- Consumer confidence in China remains low, impacting overall performance and posing a challenge for future growth.
- Budweiser Brewing Co APAC Ltd (BDWBF) is experiencing increased competition in China, particularly in the Core and Value segments, which could affect market share and profitability.
Welcome to the 2024 first half results announcement conference call for Budweiser Brewing Company APAC Limited. Hosting the call today from Budweiser APAC is Mr. Jan Craps, Chief Executive Officer and Co-Chair of the Board; and Mr. Ignacio Lares, Chief Financial Officer.
The results for the six months ended 30 June 2024 can be found in the press release published earlier today and available on the Hong Kong Stock Exchanges and Budweiser APAC website.
Before proceeding, let me remind you that some of the information provided during this results call, including our answers to your questions on this call may contain statements of future expectations and other forward-looking statements. These expectations are based on the management's current views and assumptions and involve known and unknown risks, uncertainties and other factors beyond our control.
It is possible that Budweiser APAC's actual results and financial condition may differ possibly materially from the anticipated results and financial condition indicated in these forward-looking statements. Budweiser APAC is under no
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