Brewer Budweiser Brewing Co. APAC Ltd. (1876.HK) said on Sunday that it booked a provision of approximately $30 million during the three months through September due to prolonged payment delays for beer products sold to a company in Telangana, India.
Budweiser APAC emphasized that the provision will have no impact on its organic growth. The company added that it will continue to make its best efforts to recover the outstanding amounts and take necessary actions to protect its interests.
During the period, the company also carried out an internal restructuring involving some of its Chinese subsidiaries, including Anheuser-Busch InBev Sedrin Brewery, to enhance its capital efficiency. As a result, it said it expects to record a non-underlying withholding tax charge of $52 million.
It said both charges will have a negative impact on its third-quarter profit.
Shares of Budweiser APAC opened down 0.4% at HK$5.65 on Monday. The stock is down 30% from its 52-week high.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
Related Articles
RELATED ARTICLES
-
BRIEF: Budweiser APAC profit sags amid weaker margins
- Bud APAC’s first-half profit up, but China recovery lags
-
Sunmi Technology swings to the red as forex and listing costs weigh
6810.HK
-
Forex losses, fair-value changes weigh on Sanhua Intelligent’s profit
2050.HK002050.SHE
-
Restructuring hits Want Want’s bottom line, as top line ekes out growth
0151.HK
- With looming debt pressures, Agile faces tough road to restructuring
-
Full Truck Alliance says revenue growth could slip into reverse in third quarter
YMM.US
