This article first appeared on GuruFocus .
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Total APAC Volumes (H1 2026):Decreased by 2.2%.
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Total APAC Revenue (H1 2026):Decreased by 1.4%.
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Revenue per Hectoliter (H1 2026):Increased by 0.8%.
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Normalized EBITDA (H1 2026):Decreased by 8.9%.
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Normalized EBITDA Margin (H1 2026):Contracted by 236 basis points.
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Total APAC Volumes (Q2 2026):Decreased by 4.1%.
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Total APAC Revenue (Q2 2026):Decreased by 2.1%.
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Revenue per Hectoliter (Q2 2026):Increased by 2.1%.
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Normalized EBITDA (Q2 2026):Decreased by 9.7%.
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Profit Attributable to Equity Holders (H1 2026):Increased by 15.6%.
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China Volumes (Q2 2026):Decreased by 9.7%.
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China Revenue (Q2 2026):Decreased by 8.6%.
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China Revenue per Hectoliter (Q2 2026):Increased by 1.2%.
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China Normalized EBITDA (Q2 2026):Decreased by 15.9%.
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South Korea Volumes (Q2 2026):Increased by low teens.
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South Korea Revenue per Hectoliter (Q2 2026):Decreased by low single digits.
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South Korea Normalized EBITDA (Q2 2026):Increased by strong double digits.
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South Korea Normalized EBITDA Margin (Q2 2026):Expanded substantially by 400 basis points.
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South Korea Volumes (H1 2026):Flat.
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South Korea Revenue per Hectoliter (H1 2026):Increased by low single digits.
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South Korea Normalized EBITDA (H1 2026):Increased by mid single digits.
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India Revenue Growth (Q2 and H1 2026):Double-digit revenue growth.
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Release Date: July 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Strong double-digit volume growth in South Korea in Q2, driven by easier comparisons and market share gains.
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India delivered double-digit revenue growth in both Q2 and H1 2026, with market share gains in premium segments.
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Revenue per hectoliter increased by 2.1% in Q2, benefiting from positive country and brand mix in China.
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O2O channel in China saw strong double-digit growth in Q2 and H1, supporting premiumization strategy.
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South Korea normalized EBITDA margin expanded substantially by 400 basis points in Q2, supported by top-line performance and operational leverage.
Negative Points
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Total APAC volumes decreased by 2.2% in H1 2026, with a 4.1% decline in Q2 due to weakness in China.
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China volumes dropped 9.7% in Q2, with revenue down 8.6% and normalized EBITDA falling 15.9%.
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Normalized EBITDA margin contracted by 236 basis points in H1, pressured by China top-line and increased marketing investments.
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China on-premise channel remains weak with no signs of recovery, and July trends continue to show market weakness.
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Dividend sustainability is at risk if performance does not improve, as earnings have declined for several years.
Q & A Highlights
Here are the key highlights from the Budweiser Brewing Co APAC Ltd ( BDWBF ) earnings call, focusing on the most critical Q&A exchanges.
Q: Given the ongoing volume decline in China and the pressure on margins, what is the company's top priority, and how should we think about the EBITDA margin outlook for the second half of 2026? A: (Bernardo Rettich, CFO) Our absolute priority in China is to stabilize volumes. This means we will continue to invest behind our brands despite the top-line pressure. We expect margins to remain under pressure in the second half as we prioritize long-term brand health over short-term profitability. The EBITDA performance is being driven by three factors: the China top-line decline, increased marketing investments, and lower other operating income.
Q: The company has a 12-month cost hedging policy. With rising input costs in 2026, will we see delayed gross profit margin pressure in 2027? If so, will you focus on SG&A control or continue commercial investment to revive top-line growth? A: (Bernardo Rettich, CFO) You are correct. The hedging policy means we will start to feel the impact of higher costs, like aluminum, in the second half of 2026 and into 2027. While we have some good news on barley and are working on supply chain efficiencies, this will not stop us from investing in the market. We believe the right thing to do is to keep investing behind our brands to recover volumes in China.
Q: Given the prolonged volume decline in China and several years of earnings decline, will there be any implication for the dividend policy, which has been largely fixed despite earnings volatility? A: (Bernardo Rettich, CFO) Our capital allocation priorities remain the same, with organic growth as number one. However, it is fair to assume that if results do not improve and remain below our expectations, it will be difficult to maintain dividends at their current levels. It is too early to say, as we are only halfway through the year, but it is a risk we acknowledge.
Q: What is the current state of channel inventory in China? Are we at the ideal level, or will there be further adjustments in the second half? A: (Bernardo Rettich, CFO) Our inventory is lower than it was at the same time last year, but we are not yet at the ideal level. We still have some room to improve in both tier 1 and tier 2 inventories. We will remain agile, and there may be a few more adjustments in the second half, but we are getting close to our target.
Q: The company has pivoted its strategy from geographic expansion to in-home and O2O channel expansion. Was this the right choice, and is the margin decline in China a temporary setup cost or a structural shift? A: (Bernardo Rettich, CFO) It is a bit of both. We are increasing investments as a percentage of net revenue, and the ROI is lower because volumes are declining. However, we believe it is the right long-term move. On the O2O side, margins are structurally lower, but we are offsetting this by premiumizing the channel, where our portfolio has an advantage. Some pressures are structural, and some are investments we are making now to recover.
Q: In South Korea, can you share the latest developments in the non-alcohol and beyond-beer categories? How are you positioning your portfolio to capture this growth? A: (Bernardo Rettich, CFO) We are leading with innovation in "balanced choices." For example, we relaunched Cass 0.00 using new alcohol-removal technology, making it the number one non-alcoholic segment. We also launched Neutral, a Canadian vodka soda, in Korea with a K-Pop partnership. These innovations are key to maintaining stable volumes in a soft industry and represent a significant opportunity for the future.
Q: Given cost inflation and weak demand in China, are you considering any pricing actions? How are you balancing protecting volume versus protecting margins? A: (Bernardo Rettich, CFO) Our priority remains stabilizing volumes. We are aware of competitive pricing actions in some regions and packs, but we have no news to share about price increases at this point. We are investing to support our wholesalers and brands, and we expect to continue this investment in the second half. The focus is on volume recovery, not price-driven margin protection.
Q: Given the strong growth in India, will the company consider inorganic growth opportunities in the region to offset the weakness in China? A: (Bernardo Rettich, CFO) The growth in India and Southeast Asia highlights the advantage of our geographic footprint. However, this does not change our capital allocation priorities. Organic growth remains number one. Inorganic opportunities are number two, but they depend on both buyers and sellers. We remain engaged in conversations and will be at the table if an opportunity arises, but we have nothing to announce.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
