On February 12, BUD APAC Holdings Limited (01876.HK) announced its full-year results for fiscal year 2025. During the reporting period, the company experienced declines across revenue, net profit, and volume. Performance in the Chinese market was under pressure due to factors including weakness in the on-premise channel. The company stated that reigniting growth in China will be its core focus for 2026.
In fiscal 2025, BUD APAC achieved revenue of $5.764 billion, a decrease of 7.72% year-over-year, with organic growth at -6.1%. Net profit was $489 million, down 32.64% compared to the previous year. Total volume reached 7.9658 million kiloliters, a decline of 6.08% year-over-year, with organic growth at -6%.
Over the past year, BUD APAC's overall performance weakened in the APAC West region. For the full year, volume in the region decreased by 6.7%, while revenue and revenue per hectoliter fell by 8.2% and 1.5%, respectively. Normalized EBITDA declined by 12.4%. In the fourth quarter, volume saw a slight increase of 0.1%, but revenue and revenue per hectoliter decreased by 5.6% and 5.7%, respectively. Normalized EBITDA saw a significant drop of 40%.
On the other hand, performance in the Chinese market also fell slightly below expectations. In fiscal 2025, volume and revenue in China decreased by 8.6% and 11.3%, respectively, while revenue per hectoliter declined by 3%. In the fourth quarter, impacted by business layout and continued weakness in the on-premise channel, volume in China decreased by 3.9%, with revenue and revenue per hectoliter falling by 11.4% and 7.7%, respectively. Normalized EBITDA dropped by 42.3%, primarily affected by revenue performance, reduced subsidies, and increased channel investment.
However, it is noteworthy that BUD APAC made progress in its channel and digital transformation within China.
In 2025, contributions from BUD APAC's non-on-premise and O2O channels to both volume and revenue increased. The fourth quarter saw a focused push on premiumization within the non-on-premise channel. The digital tool BEES now covers over 320 cities in China, aiding in expanding distribution coverage and sales efficiency. The company also launched initiatives such as a limited-edition Year of the Horse gift box and cross-over marketing campaigns to strengthen brand influence in home, social, and gifting occasions.
Alongside the earnings release, BUD APAC announced a dividend plan, with the board recommending a final dividend of 5.66 US cents per share for the 2025 fiscal year.
BUD APAC's 2025 performance in China did not meet expectations, but the company has implemented measures such as strengthening non-on-premise channel management and enriching its product portfolio to reignite growth momentum.
According to BUD APAC's fiscal 2025 report, the company has established a growth strategy for 2026 centered on the Chinese market, with the primary task being to reignite the growth trend and rebuild momentum for market share. The company will lead with the Budweiser brand, strengthen its product matrix through innovation in the core+ and super-premium product portfolios, accelerate the expansion of non-on-premise channels, and continue to leverage digital tools to enhance execution efficiency and consumer engagement.
BUD APAC stated that China remains a significant profit pool and a high-potential market in the global beer industry, with its long-term growth logic unchanged.
Following the earnings release, CLSA promptly issued a research report noting that BUD APAC's fourth-quarter 2025 results were largely in line with market expectations. Organic revenue during the quarter decreased by 4% year-over-year, while organic normalized EBITDA fell by 25%. The net loss was higher than expected, mainly due to tax expenses exceeding forecasts. The Chinese market continued to drag on performance, with revenue down 11%. Although the volume decline has narrowed for consecutive periods, average selling price faced pressure due to investments supporting the at-home channel and an unfavorable product mix shift.