Budweiser Brewing Co APAC Ltd Earnings - Q3 2025 Analysis & Highlights

Key Takeaways

Budweiser Brewing Co. APAC Ltd.'s Q3 2025 earnings call highlighted challenges in China, offset by performance in India, with a focus on improving China's route to market and portfolio execution, and investments in brand building and innovation.

Key Financial Results

  • 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%.
  • Normalized EBITDA decreased by 7.7% and the normalized EBITDA margin contracted by 37 basis points.
  • In the third quarter, total volumes and revenue decreased by 8.6% and 8.4%, respectively.
  • Revenue per hectoliter increased by 0.1%.
  • Normalized EBITDA decreased by 6.9%, while the normalized EBITDA margin expanded by 46 basis points.

    • Business Segment Results

  • In APAC West, for the first nine months, volumes and revenue decreased by 7.9% and 8.7%, respectively, while revenue per hectoliter decreased by 0.8%.
  • Normalized EBITDA decreased by 9.7%.
  • In China, third quarter volumes decreased by 11.4%.
  • Revenue decreased by 15.1%, while revenue per hectoliter decreased by 4.1%.
  • Normalized EBITDA decreased by 17.4%.
  • In India, double-digit revenue growth was delivered in the third quarter.
  • In APAC East, for the first nine months, volumes decreased by 0.5% with revenue and revenue per hectoliter increasing by 1.8% and 2.3%, respectively.
  • Normalized EBITDA increased by 0.3% with the EBITDA margin decreasing by 46 basis points.
  • In South Korea, third quarter volumes were flattish.
  • Revenue and revenue per hectoliter both grew by mid-single digits.
  • EBITDA and EBITDA margin expanded substantially.

    • Growth Opportunities and Strategies

  • Budweiser APAC is focused on improving its top line performance in China by strengthening its route to market, increasing investment in megabrands, leading innovation, expanding its footprint, and restoring excellence in execution.
  • The company is focused on premiumizing the in-home channel as in-home consumption occasions continue to develop.
  • Budweiser APAC continues to invest in diverse marketing campaigns and innovations to further increase the brand power of its portfolio.
  • The company continues to leverage technology to further enhance its commercial capabilities, optimize its route to market, and strengthen its customer relationships.
  • In India, the Budweiser brand continued to grow ahead of the industry with the volume and revenue of the Premium and Super Premium portfolio increasing by double digits.
  • Cass ALL Zero, South Korea's first non-alcoholic beer, was unveiled to emphasize a 4 Zero concept of zero alcohol, zero sugar, zero calories and zero gluten.

    • Industry Trends and Dynamics

  • The overall industry in China has been impacted by a soft economic cycle.
  • In South Korea, the total industry remains soft given the macroeconomics.
  • Consumers are prioritizing essential spending, impacting overall alcohol consumption.
  • Non-alcoholic beer, flavored beer, and RTDs are growing in South Korea.
  • The summer and the Chuseok selling periods are usually the most active in terms of promotional activity and investment innovations in South Korea.
  • The instant retail, O2O, and e-commerce channels continue to grow in China.