Budweiser APAC Q1 EBITDA of $463 million beats analyst estimates

Budweiser Brewing Company APAC Ltd. (1876.HK) reported first-quarter revenue and earnings that beat analyst estimates, though both metrics fell compared to the previous year, reflecting persistent market pressures.

"The result was above the broker’s forecast," Morgan Stanley said in a research report, highlighting the top- and bottom-line beat. The bank maintained its Overweight rating on the brewer's stock.

For the first quarter of 2026, Budweiser APAC posted revenue of $1.49 billion, a 0.7% year-over-year decline but ahead of Morgan Stanley's $1.45 billion estimate. The company's normalized EBITDA fell 8.1% to $463 million, which also surpassed the bank's forecast of $457 million. The sales volume for the quarter saw a slight increase of 0.1%.

The performance was supported by strong results in the India market, while the rate of decline narrowed in China. However, margins tightened, with the normalized EBITDA margin decreasing by 246 basis points to 31%, and the EBIT margin declining by 164 basis points. The company's gross margin remained stable, edging up by a single basis point.

Outlook and Context

Looking ahead, Morgan Stanley analysts expect Budweiser APAC's EBITDA growth to show continued improvement. The bank's positive outlook is based on an anticipated recovery in sales volume in South Korea from a normalized base and margin improvements in the China market. The analysts held their price target at HKD9.

Budweiser APAC is a part of the global brewing giant Anheuser-Busch InBev (NYSE: BUD), which operates a vast portfolio of brands including Budweiser, Stella Artois, and Corona. The APAC entity manages an extensive distribution network across Asia, a key growth region for the parent company.

The year-over-year declines despite beating forecasts suggest a challenging operating environment, but the analyst's maintained rating indicates confidence in the company's ability to navigate the market. Investors will be watching for the expected recovery in South Korea and margin stabilization in China in the upcoming quarters.

This article is for informational purposes only and does not constitute investment advice.