Budweiser Brewing Company APAC (1876) Q2 2026 earnings summary

Executive summary

• First half 2026 saw a 2.2% decline in total volumes and a 1.4% revenue decrease, mainly due to softness in China, partially offset by gains in South Korea and India.

• Normalized EBITDA dropped 8.9% year-over-year, with margin contracting by 236 bps to 29.2%.

• Profit attributable to equity holders rose to $481M from $474M in 1H25, with basic EPS increasing to 3.57 cents.

• Revenue per hectoliter increased by 0.8%, supported by positive country and brand mix.

• Net cash position remained strong at $2.5B as of June 30, 2026.

Financial highlights

• 1H26 revenue: $3,171M (down 1.4% YoY); total volumes: 42,624k hls (down 2.2%).

• Gross profit: $1,645M (down 1.2% YoY); gross margin improved by 10 bps to 51.9%.

• Normalized EBITDA: $926M (down 8.9% YoY); normalized EBIT: $637M (down 9.0% YoY).

• Normalized EPS: 3.63 cents (up from 3.59 cents in 1H25).

• Operating cash flow increased to $530M; cash and cash equivalents at period end: $2,543M.

Outlook and guidance

• Management remains cautious on China, expecting continued weakness and ongoing margin pressure due to sustained brand investments.

• Focus on premiumization, channel expansion, and brand innovation in China and South Korea.

• Commercial investments to accelerate growth in India and APAC East.

• No interim dividend declared for 1H26.

• Higher input costs, especially aluminum, will impact margins in H2 2026 and into 2027, partially offset by barley cost improvements.