Q3 2024 Budweiser Brewing Company APAC Ltd Earnings Call Transcript
Key Points
- Budweiser Brewing Co APAC Ltd (BDWBF) achieved strong market share gains in South Korea, driven by mid-single-digit volume growth and mid-teens revenue increase.
- The company continues to lead the premiumization of the beer category in China, with Premium and Super Premium portfolios contributing approximately two-thirds of revenue.
- In India, Budweiser Brewing Co APAC Ltd (BDWBF) outperformed the industry with double-digit net revenue growth within its Premium and Super Premium portfolio.
- The company maintained a low-risk rating from Sustainalytics, ranking fourth among 85 beer, wine, and spirits companies, highlighting its commitment to sustainability.
- Budweiser Brewing Co APAC Ltd (BDWBF) expanded its geographic footprint, with Budweiser distribution targeted to increase from 220 to 235 cities in China, indicating a strategic focus on long-term growth.
- Total volumes for the first nine months of 2024 decreased by 8.1%, with revenue declining by 6.1%, reflecting challenges in key markets.
- In China, volumes decreased by 14.2% in the third quarter, impacted by weak consumer sentiment and a soft industry, particularly affecting the on-premise channels.
- Normalized EBITDA decreased by 6.2%, with a slight decrease in the EBITDA margin, indicating pressure on profitability.
- The company faced adverse channel mix effects, which partially offset the benefits from revenue management initiatives and favorable brand mix.
- Budweiser Brewing Co APAC Ltd (BDWBF) experienced market share losses in China, attributed to low consumer confidence and increased competition from other beer brands.
Welcome to the 2024 9 Months 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 nine months ended 30th September 2024 can be found in the press release published earlier today and available on the Hong Kong Stock Exchange's and Budweiser APAC's websites.
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
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