Budweiser Brewing Asia Pacific posts US$41m loss, says business recovering

Budweiser Brewing Company Asia Pacific (1876) reported today a loss of US$41 million for the three months ended March 31, from profit of US$259 million a year ago, due to the coronavirus global pandemic that has ravaged economies and human lives, spreading rapidly from China.

Revenue declined by 39 percent, driven by the decline in volumes.

Revenue per hectoliter growth of 5.7 percent was mainly driven by favorable country mix, continued premiumization in China, and benefits from the tax reform in South Korea, the brewer said.

Revenue in China declined by 45.4 percent driven by a volume drop 46.5 percent and revenue per hl growth of 2 percent

Earnings per share was -0.05 US cents.

The company has re-opened all breweries in China.

Since mid-March, business has been improving consistently week-over-week, driven by the recovery in China and South Korea.

The brewer said it donated funds and resources including cash contributions, emergency medical supplies and clean drinking water from Budweiser’s emergency drinking program, in addition to providing commercial support long-term, strategic business partners.

Available cash and cash equivalents accounted to more than US$900 million at the end of April 2020.

The financial information is unaudited.

Normalized EBITDA declined by 68 percent and normalized EBITDA margin was 17.9 percent, the brewer said.-The Standard