百威亚太20241031

Industry and Company * Company: Budweiser Brewing Company, AIPAC Ltd. * Industry: Beer and beverage industry, specifically focusing on premium and super-premium segments. Core Views and Arguments * Performance Impact: The first nine months of 2024 were impacted by industry weakness in China, partially offset by strong performance in South Korea and India. * Market Share Gains: Continued commercial momentum in South Korea and India drove sustained market share gains and revenue per hectolitre growth. * Premiumization: The company is leading the premiumization of the beer category, with premium and super-premium portfolio contributing approximately two-thirds of revenue. * Innovation: Volume and revenue contribution from innovations within the Budweiser family, including Supreme and Magnum, continue to increase. * Channel Expansion: Revenue contribution from the in-home channel grew as a result of ongoing efforts to premiumize the channel. * Geographic Expansion: The company's geographic expansion strategy for the Budweiser brands is on track. * Sustainability: The company has made progress in sustainability initiatives, maintaining a low-risk rating from Sustainalytics. Key Financials * Total Volumes: Decreased by 8.1% * Revenue: Decreased by 6.1% * Revenue per Hectolitre: Grew by 2.2% * Normalized EBITDA: Decreased by 6.2% * Normalized EBITDA Margin: Decreased by four basis points * Gross Profit Margin: Expanded by 108 basis points * Cost of Sales: Decreased by 8.1% China Market * Performance: Impacted by a soft industry, particularly from continued weakness in on-premise channels. * Premiumization: Leading the premiumization of the beer category, with premium and super-premium portfolio contributing approximately two-thirds of revenue. * Innovation: Volume and revenue contribution from innovations within the Budweiser family, including Supreme and Magnum, continue to increase. * Channel Expansion: Revenue contribution from the in-home channel grew as a result of ongoing efforts to premiumize the channel. * Geographic Expansion: The company's geographic expansion strategy for the Budweiser brands is on track. * Sustainability: The company has made progress in sustainability initiatives, maintaining a low-risk rating from Sustainalytics. South Korea Market * Performance: Revenues grew by mid-teens in the third quarter, driven by double-digit revenue per hectolitre increase and single-digit volume growth. * Market Share: Achieved a strong overall total market share gain, supported by share gains in both the on-premise and in-home channels, led by KAS. * Innovation: Further expanded Cast Light Zero Sugar in the third quarter with a campaign featuring South Korean Olympic fencing gold medalist Oh Sang-Wook. * Geographic Expansion: The company's geographic expansion strategy for the Budweiser brands is on track. * Sustainability: The company has made progress in sustainability initiatives, maintaining a low-risk rating from Sustainalytics. India Market * Performance: Business continued to outgrow the industry for the first nine months of the year, driven by double-digit net revenue growth within the premium and super-premium portfolio. * Premiumization: Premium and super-premium segments contributed more than two-thirds of revenue. * Innovation: The company has made progress in sustainability initiatives, maintaining a low-risk rating from Sustainalytics. Sustainability * Sustainalytics Rating: Maintained a low-risk rating from Sustainalytics, ranking 4th among 85 beer, wine and spirits companies and 7th out of 644 food products companies worldwide. * Global Beer Responsible Day: Kicked off campaigns across key markets to celebrate a Global Beer Responsible Day to promote smart drinking. * Commitment: A commitment the company has been championing for 17 years, in partnership with government and industry stakeholders. Future Outlook * Premiumization: The company remains committed to premiumization, with a focus on expanding its premium and super-premium portfolio. * Geographic Expansion: The company continues to expand its geographic footprint, targeting lower-tier cities and regions with high growth potential. * Digitization: The company is investing in digitization and system integration to improve processes and management visibility. * Cost Management: The company remains focused on cost management initiatives to improve efficiency and profitability.