Budweiser Brewing nine-month revenue falls on weaker China demand

Overview

• Asia beer brewer's nine-month revenue declined 3.7% yr/yr amid adverse weather, China weakness

• Net income attributable to equity holders for nine months fell yr/yr

• Company says India and South Korea volume growth partially offset China softness

Outlook

• Company says it is taking actions to support future volume recovery in China

• Company focuses on channel expansion and premiumization to drive sales in China

Result Drivers

• CHINA SOFTNESS - Co said performance in China was impacted by adverse weather and ongoing weakness in the on-premise channel

• INDIA AND SOUTH KOREA GROWTH - Co said strong volume growth in India and continued market share gains in South Korea helped offset industry softness

• COST ESCALATION AND OPERATIONAL DELEVERAGE - Co said increased costs and operational deleverage contributed to margin contraction

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the brewers peer group is "buy"

• Wall Street's median 12-month price target for Budweiser Brewing Company APAC Ltd is HK$8.00, about 37.8% above its October 28 closing price of HK$5.81

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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• Oct 28 - China's Tsingtao Brewery nine-month revenue falls on domestic market pressure

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)