Budweiser Brewing Company APAC Limited (Bud APAC) reported unaudited results for the three months ended 31 March 2026, highlighting modest volume recovery but softer profitability driven by higher commercial spending in China and South Korea.

Total beer volumes edged up 0.10% year on year to 19.74 million hectolitres, supported by continued double-digit growth in India and an improved industry backdrop in China. Revenue slipped 0.70% to USD 1.49 billion, while revenue per hectolitre fell 0.80% due to additional in-market investments, mainly in China’s in-home channel.

Cost of sales decreased 0.70% to USD 730 million, mirroring the revenue decline, as efficiency gains limited unit cost inflation. However, selling, general and administrative expenses rose 3.20% to USD 466 million, reflecting stepped-up brand and route-to-market spending. Normalized EBITDA dropped 8.10% to USD 463 million, compressing the margin to 31.0% from 33.2% a year earlier. Normalized EBIT contracted 7.90% to USD 315 million.

Normalized profit attributable to equity holders was broadly stable at USD 234 million (USD 1.77 cents per share), versus USD 235 million in Q1 2025. Reported profit attributable to equity holders came in at USD 226 million.

Segment performance • APAC West (China, India, Southeast Asia, exports): Volumes rose 1.70% and revenue increased 0.70%. Revenue per hectolitre slipped 1.00%, and normalized EBITDA declined 7.50%, reflecting heavier promotional activity in China. • China: Volume contracted 1.50% and revenue fell 4.00% as channel investments and wholesaler support continued. Normalized EBITDA declined 10.90%. • India: The business recorded strong double-digit growth in both volume and revenue, benefiting from premiumisation and market share gains. • APAC East (primarily South Korea, Japan, New Zealand): Volumes dropped 9.80% and revenue fell 6.10%, though revenue per hectolitre improved 4.00% on pricing actions. Normalized EBITDA decreased 10.40%, affected by shipment phasing in South Korea.

Other items • Other operating income decreased 29.20% to USD 18 million, mainly due to lower government incentives in China. • Net finance income was USD 6 million, and the effective tax expense was USD 83 million. • Non-underlying restructuring charges of USD 8 million were recorded above EBIT.

Contingencies Oriental Brewery (OB) in South Korea has recognised cumulative exceptional charges of USD 86 million related to customs audit claims and is contesting the assessments. OB has also prepaid approximately USD 62 million in relation to current tax audits and is challenging certain assessments. Management does not expect potential penalties to be material to Bud APAC.

Bud APAC reiterated its strategic priorities: stabilising volumes, expanding premium portfolios, and investing behind megabrands across emerging channels, while balancing profitability pressures in the near term.