Beer maker Budweiser Brewing Co. APAC Ltd. (1876.HK) (Bud APAC) said on Wednesday its revenue fell 7% last year to $6.25 billion, while its profit dropped by 14% to $726 million. Its gross profit margin for the year was steady at 50.4%.
The company reported its volumes fell 11.8% last year due to weakness and a “negative channel mix” in China, its biggest market. That weakness was partly offset by strong performances in South Korea and India. Sales in China fell sharply in the fourth quarter, down 18.9% year-on-year, and sales in the western Asia-Pacific region also fell 17%. But they rose 8.5% in the eastern Asia-Pacific region.
Bud APAC said it will focus on its namesake Budweiser and its Harbin Beer brands in China this year to reconnect with consumers to drive growth. It added that Cheng Yanjun, its global supply chain operations chief, will succeed Jan Craps as CEO and co-chairman effective April 1.
Shares of the company rallied on Wednesday after the report’s release, up by more than 10%.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
