--- title: "Heavyweight | Budweiser APAC H1 Results Announced, Q2 Flat Year-on-Year, June Hits New Domestic High" description: "Budweiser APAC's H1 performance was impacted by the pandemic but recovered rapidly. In China, Q2 overall sales volume was flat versus the same period in 2019, down only 0.3%; May and June saw year-on-year growth, with June setting a new all-time high in China." author: "New Distribution" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2020-07-30" language: "en" canonical: "https://xinjignxiao.com/en/articles/heavyweight-budweiser-apac-h1-results-announced-q2-flat-year-on-year-jun-3ed15515/" markdown: "https://xinjignxiao.com/en/articles/heavyweight-budweiser-apac-h1-results-announced-q2-flat-year-on-year-jun-3ed15515.md" original_source: "https://mp.weixin.qq.com/s/ngSmYRgcAAbao0qSijiNCA" translation: "https://xinjignxiao.com/zh/articles/%E9%87%8D%E7%A3%85%E4%B8%A8%E7%99%BE%E5%A8%81%E4%BA%9A%E5%A4%AA%E4%B8%8A%E5%8D%8A%E5%B9%B4%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%B8%83-%E7%AC%AC%E4%BA%8C%E5%AD%A3%E5%BA%A6%E4%B8%9A%E7%BB%A9%E6%8C%81%E5%B9%B3%E5%90%8C%E6%9C%9F-6%E6%9C%88%E5%88%9B%E5%9B%BD%E5%86%85%E6%96%B0%E9%AB%98-3ed15515.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/heavyweight-budweiser-apac-h1-results-announced-q2-flat-year-on-year-jun-3ed15515/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Heavyweight | Budweiser APAC H1 Results Announced, Q2 Flat Year-on-Year, June Hits New Domestic High > Budweiser APAC's H1 performance was impacted by the pandemic but recovered rapidly. In China, Q2 overall sales volume was flat versus the same period in 2019, down only 0.3%; May and June saw year-on-year growth, with June setting a new all-time high in China. **Click the image above for details** **Budweiser APAC's H1 performance was impacted by the pandemic but recovered rapidly. In China, Q2 overall sales volume was flat versus the same period in 2019, down only 0.3%; May and June saw year-on-year growth, with June setting a new all-time high in China.** On the morning of July 30, Budweiser APAC released its financial report for the first half of 2020. The report shows that for the six months ended June 30, 2020, Budweiser APAC's revenue was $2.575 billion, a year-on-year decrease of 26.9%; gross profit was $1.327 billion, down 29.8% year-on-year; net profit was $222 million, down 65.90% year-on-year. Budweiser APAC's total sales volume in H1 was 3,873.3 million hectoliters, down 22.2% year-on-year. In the Chinese market, H1 sales volume fell 20.5%, leading to a 23.3% decline in revenue in China. Although the overall H1 performance declined due to the pandemic, Budweiser APAC recovered very quickly. Budweiser APAC management stated that H1 results were affected by COVID-19, but improved significantly in Q2, with sales better than in Q1. The report shows that after a 17% sales volume decline in China in April, Budweiser APAC achieved mid-single-digit sales volume growth in both May and June in China, and June recorded the highest single-month sales volume in its history in China. This also brought China's overall Q2 sales volume to flat versus the same period in 2019, down only 0.3%. In H1 2020, cost of sales decreased by 19.5%, but cost per hectoliter increased by 3.4%, resulting in a 23.6% decrease on a reported basis after considering exchange rate effects and scope changes. In Q2 2020, as production scale and operations gradually resumed in China, cost of sales decreased by 10.2%, and cost per hectoliter decreased by 4.4%. With the pandemic impact in China basically over, the domestic beer market has gradually returned to normal levels. Budweiser APAC also stated that despite the damage to performance from the pandemic, the development of the Chinese market remains encouraging. The recovery of Budweiser APAC's Q2 sales volume in China is related to the recovery of various sales channels. It is estimated that domestic retail channels are now nearly fully recovered, while foodservice channels have recovered over 90%, and the nightlife channel, which had been slow to recover, has also recovered over 80%. In response to the decline in performance, Budweiser APAC explained that it was related to the slower recovery of the nightlife channel and the high base in Q2 last year, but the long-term premiumization trend in the Chinese market has not changed. In recent years, Budweiser APAC has faced considerable competitive pressure in the market. Domestic beer companies have collectively moved into the premium segment, and many craft beers, as well as German and Belgian beers, have entered the domestic market through e-commerce. It can be said that strong competitors are all around. However, based on the data in this half-year report, Budweiser APAC still holds a relatively strong position in the domestic market. Based on the rapid recovery of Budweiser APAC's performance, in mid-July, CICC issued a research report stating that, considering Budweiser APAC's (01876) leading position in the Asia-Pacific premium market and its solid mid-to-long-term growth capability, it granted Budweiser APAC an "Outperform" rating with a target price of HKD 28.8. Many institutions also believe that Budweiser APAC's core advantage lies in its ability to build premium brands, coupled with high product quality and strong channel control. These potential drivers will bring the company industry-leading profitability. Budweiser APAC is also paying increasing attention to the Chinese market, and for this reason, it has also achieved its first factory in China that uses 100% renewable electricity for production. In April, it also announced a salary increase plan for employees: all eligible employees in China will receive an average salary increase of 5%, with executives' salary increases to be implemented from October 1, 2020; frontline employees will also receive an additional summer incentive as recognition, with an average salary increase of 5% from April to September this year, totaling a 10% increase. This series of actions targeting the Chinese market will undoubtedly provide momentum for accelerating development in China in the future. Affected by the pandemic, the beer industry will accelerate channel transformation, with traditional channels shifting to e-commerce and contactless delivery. At the same time, there may be a shift in alcohol consumption from social gatherings to self-consumption. It can be said that opportunities and challenges coexist, and the future market landscape remains uncertain. --- ## Copyright and AI use This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL. Contact: zhaobo258@gmail.com · +86 158 5481 7671