[SPDB International] Budweiser APAC: 2Q26 Results Still Weak, Short-to-Medium-Term Outlook Negative

English summary

2Q26 results remained weak, with lackluster profit quality: 2Q26 China sales fell 9.7%, pressuring overall results; net profit beat was due to tax contributions. 1) 2Q26 results: On an organic basis (same below), 2Q26 total revenue was USD 1,678 million, -2.1% YoY; normalized EBITDA was USD 463 million, -9.7% YoY; net profit attributable to shareholders was USD 247 million. Revenue was in line with consensus, while net profit attributable to shareholders significantly beat consensus (consensus revenue/net profit were USD 1,672 million/186 million, respectively). 2) By region: In 2Q26, Korean market sales grew low double digits YoY, leading robust growth in APAC East; China market sales fell 9.7% YoY; India grew double digits YoY, but APAC West remained under pressure. In 1H26, APAC East (including Korea, Japan, and New Zealand) / APAC West (including China, India, Southeast Asia, and exports) accounted for 20% / 80% of total revenue. ...