Budweiser Brewing Co APAC Stock (OTC: BDWBY)

Latest news for Budweiser Brewing Co APAC (OTC:BDWBY) Stock

Budweiser APAC is the largest brewer in Asia by retail sales value and the second largest by volume, according to Euromonitor. After 10% of the business was listed on the Hong Kong exchange in 2019, parent company Anheuser-Busch InBev owns close to 90% of the company's equity.Budweiser APAC's largest markets are China (roughly 80% of 2023 revenue), South Korea (12%), and India (6%). The remaining 2% comprises Japan, New Zealand, and other export markets in the Asia-Pacific region. The company predominantly produces, imports, markets, distributes, and sells a portfolio of more than 50 beer brands, both owned and licensed, including global brands Budweiser, Stella Artois, and Corona along with multicountry brands and local brands such as Hoegaarden, Cass and Harbin.

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BUDWEISER BRWNG UNSP/ADR by BUDWEISER BREWING CO APAC LTD.

BDWBY

Key Takeaways:


	Budweiser APAC’s first-quarter revenues slipped 0.4% and profits fell 3.4%, sagging from elevated levels a year earlier and dampened by bad weather
	Market watchers say earnings may pick up in the second half, stimulated by events such as the Paris Olympics, but rivalry in the premium beer business is heating up




Slump From Post-Covid High Leaves Budweiser APAC With Earnings Hangover

Budweiser Brewing Co APAC Ltd

Japanese automaker Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>) on Wednesday hiked its full-year operating income outlook by 400 billion yen ($2.62 billion) to 4,700 billion yen for the financial year ending March 2025.
Upbeat Forecast: The company now expects full-year sales revenue of 47,000 billion yen and a margin of 10%, up from its previous forecast of 9.3%. 
The revised forecast reflects the company&#8217;s progress in strengthening earnings power and efforts to improve product competitiveness and value chain earnings, it said.
Weak Quarterly Results: The upbeat forecasts, however, follow a weak quarterly report. Toyota reported an operating income of 1.22 trillion yen for the three months through December, marking a drop of about 28% from the corresponding period last year, owing to a significant drop in operating income in Japan and North America.
Sales revenue in the period, however, rose marginally to 12.39 trillion yen.
Why It Matters: Toyota retained its position as the world's best-selling automaker in 2024 after <a href="https://www.benzinga.com/tech/25/01/43380849/toyota-retains-top-selling-automaker-position-while-continuing-to-trail-tesla-byd-in-ev-sales">reporting 10.8 million sales</a>, marking a dip of 4% from a year ago.
The sales numbers include those of the company's Lexus brand as well as its subsidiaries Daihatsu and Hino. Daihatsu reported sales of 536,588 units worldwide in 2024 while Hino reported sales of 125,556 units.
German automaker Volkswagen Group, in comparison, sold only about 9 million vehicles last year.
Price Action: Toyota&#8217;s NYSE-listed shares are up 2.9% in pre-market trading. The stock stock closed at $187.56 on Tuesday, down 7.6% over the past year, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro.</a> 
(1 Japanese Yen = $0.0065)
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>
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Telsey Advisory Group analyst Dana Telsey maintains Estee Lauder Cos (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EL#NYSE">EL</a>) with a Market Perform and maintains $76 price target.

Price Target

Analyst Ratings

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DA Davidson analyst Linda Bolton Weiser maintains Clorox (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>) with a Neutral and lowers the price target from $171 to $169.

DA Davidson Maintains Neutral on Clorox, Lowers Price Target to $169

Mizuho analyst Ben Chaiken downgrades Hilton Worldwide Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>) from Outperform to Neutral and raises the price target from $243 to $263.

Downgrades

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Needham analyst Mike Matson reiterates TransMedics Gr (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMDX#NASDAQ">TMDX</a>) from Hold to Hold.

Reiteration

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DA Davidson analyst Linda Bolton Weiser maintains e.l.f. Beauty (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELF#NYSE">ELF</a>) with a Buy and maintains $170 price target.

DA Davidson Maintains Buy on e.l.f. Beauty, Maintains $170 Price Target

Needham analyst Kyle Peterson reiterates Fair Isaac (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FICO#NYSE">FICO</a>) with a Buy and maintains $2500 price target.

FICO

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Snacks giant Mondelez International&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>) shares are trading lower in <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">premarket on Wednesday</a>.
The company reported fourth-quarter sales growth of 3.1% year-on-year to $9.60 billion, missing the analyst <a target="_blank" href="https://www.benzinga.com/pressreleases/25/02/g43478380/mondel-z-international-reports-q4-and-fy-2024-results" rel="noreferrer noopener">consensus estimate of $9.64 billion</a>.
Adjusted EPS of $0.65 also <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">missed the consensus estimate of $0.66.</a>
Revenues in Asia, Middle East&nbsp;&amp; Africa surged 9.9% whereas Latin America plunged 7.2%. Revenue from Europe and North America increased 5.8% and 0.1% respectively.
Gross profit for the quarter climbed 6.9% to $3.71 billion and the gross margin expanded 130 basis points to 38.6%.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/25/02/43462736/cosmetics-major-estee-lauder-q2-earnings-sales-slump-restructuring-deepens-but-ceo-bets-on-beauty-reimagined" rel="noreferrer noopener">Cosmetics Major Estee Lauder Q2 Earnings: Sales Slump, Restructuring Deepens, But CEO Bets On &#8216;Beauty Reimagined&#8217;</a>
Operating income jumped 35% to $1.61 billion and the operating margin expanded 400 basis points to 16.8%.
The operating cash flow for the twelve months totaled $4.9 billion, with a free cash flow of $3.5 billion.
&#8220;As we transition into 2025, we remain focused on executing against our long-term growth strategy and delivering on our chocolate business playbook to navigate unprecedented cocoa cost inflation,&#8221; said Chair and CEO Dirk Van de Put.
Outlook: Mondelez expects FY25 organic net revenue growth <a href="https://www.benzinga.com/calendars/guidance">to be approximately 5%.</a>
The company expects adjusted EPS to decline approximately 10% on a constant currency basis due to unprecedented cocoa cost inflation.
Mondelez sees FY25 free cash flow of over $3 billion.&nbsp;The company estimates currency translation would decrease full-year net revenue growth by approximately&nbsp;2.5%&nbsp;and negatively impact Adjusted EPS by $0.12.
Price Action: MDLZ shares are trading lower by 4.44% at $53.63 in premarket at the last check Wednesday.
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Image via Shutterstock.

Earnings

Equities

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MDLZ

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Needham analyst Matt Dezort reiterates Varonis Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VRNS#NASDAQ">VRNS</a>) with a Buy and maintains $67 price target.

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Macro Economic Events

Econ #s

Economics

U.K. Services Purchasing Managers Index For January 50.8 Vs. 51.2 Est.; 51.1 Prior

Baird analyst Peter Arment upgrades Mercury Sys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRCY#NASDAQ">MRCY</a>) from Neutral to Outperform and raises the price target from $37 to $58.

Upgrades

MRCY

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U.K. Composite Purchasing Managers' Index For January 50.6 Vs. 50.9 Est.; 50.4 Prior

Toyota Motor Reported Q3 Toyota and Lexus Vehicle Sales Of 2.73M

Toyota Motor Expects FY25 Revenue Of $309.21B Vs $291.4B Est And EPS Of $29.74 Vs $19.84 Est

PepsiCo Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEP#NASDAQ">PEP</a>) reported a <a href="https://www.benzinga.com/25/02/43460249/pepsicos-q4-sales-miss-estimates-on-downcast-performance-in-north-america-stock-dives">mixed fourth quarter</a>, missing revenue while beating earnings per share estimates. The management highlighted key strategic changes to its snack business Frito-Lay North America, which manufactures popular products like Lays, Cheetos, and Doritos.
What Happened: Frito-Lay North America (FLNA) experienced a decline in organic revenue for both the full year 2024 and the fourth quarter. Full-year organic revenue decreased by 0.5%, a significant drop from the 9% growth seen in 2023. In the fourth quarter alone, organic revenue was down 2%.
PepsiCo reinvested heavily in FLNA in Q4, funded partly by one-time gains, to revitalize volume growth. This included tactical spending and strategic groundwork for 2025.
The chairman and CEO of the company, Ramon Luis Laguarta in response to an analyst during its earnings call said, &#8220;We reinvested most of the one-time gains in building the infrastructure to capture those opportunities in 25.&#8221;
The management also highlighted that FLNA is emphasizing value offerings at different price points and pack sizes. This is alongside healthier options like products with lower sodium, and fat, better ingredients, and plant-based items. The management is addressing consumer preferences for &#8220;positive choices&#8221; and &#8220;permissible offerings.&#8221;
PepsiCo Beverages North America organic revenue increased 1% in 2024, which compares to 7% organic revenue growth in the prior year, whereas, Quaker Foods North America organic revenue declined 14 percent in 2024.
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Why It Matters: Laguarta said, &#8220;I think there&#8217;s a higher level of awareness in general of American consumers toward health and wellness, driven by conversations around obesity drugs, and other health-related topics. This increased awareness is influencing consumer behavior, which PepsiCo is addressing through its strategies&#8221;.
Fourth-quarter sales fell slightly short of expectations, decreasing 0.2% year-over-year to $27.78 billion compared to the projected $27.89 billion. However, adjusted EPS of $1.96 beat the $1.94 consensus.
For the next full year, PepsiCo projects low single-digit organic sales growth for 2025, anticipating a gradual improvement in North America. They reaffirmed their long-term targets of 4-6% organic sales growth and high single-digit EPS growth.
Restructuring efforts aim to boost international growth and North American efficiency, the management highlighted. PepsiCo also said that it is mindful of macroeconomic uncertainties and evolving consumer behavior, including the potential impact of weight loss drugs, though no direct impact has been observed.
Price Action: Shares of PepsiCo fell 4.51% to end Tuesday at $143.49 apiece. It rose by 0.49% in after-hours. The exchange-traded fund tracking the S&amp;P 500 index, SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.67% to $601.78 on Tuesday.
The average price target among 20 analysts <a href="https://www.benzinga.com/quote/PEP/analyst-ratings">tracked by Benzinga</a> is $178.35 with a ‘hold' rating. The estimates range from $155 to $200 apiece. Recent ratings from RBC Capital, JP Morgan, and Deutsche Bank suggest a $171.67 target, implying a potential upside of 19.05%.
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/quote/PEP/analyst-ratings"><img loading="lazy" decoding="async" width="1024" height="383" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05034243/PepsiCo-ANR-1024x383.png" alt="" class="wp-image-766528" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05034243/PepsiCo-ANR-1024x383.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05034243/PepsiCo-ANR-300x112.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05034243/PepsiCo-ANR-768x287.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/05034243/PepsiCo-ANR.png 1068w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
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PepsiCo Revamps Lays, Cheetos, And Doritos Maker Frito Lay As North American Sales Take A Hit, Shifts Focus To Health-Conscious Customers

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Morgan Stanley&#8217;s CIO&nbsp;cautioned investors regarding the risks of President, Donald Trump&#8216;s growth-negative policies such as <a href="https://www.benzinga.com/economics/macro-economic-events/25/02/43454424/china-strikes-back-new-tariffs-up-to-15-on-certain-us-imports-in-retaliation-for-trumps-10-levy-on-chinese-goods">tariffs </a>and immigration enforcement. 
What Happened: The Chief U.S. Equity Strategist and CIO of&nbsp;Morgan Stanley, Mike Wilson, predicted weak stock returns for the S&amp;P 500 in&nbsp;the next 3 to 6&nbsp;months.
He pointed out that the &#8220;equity negative&#8221; policies were introduced before the &#8220;equity positive&#8221; measures had sufficient time to take effect in the form of less crowding out and lower interest rates. He mentioned deregulation, tax extensions, and reduced government spending as some of these &#8216;equity-positive&#8217; measures.
He cautioned about tough times ahead and predicted the S&amp;P 500 to trade between $5,500-$6,100 in&nbsp;the next 3 to 6&nbsp;months, with a fourth-quarter price target of $6,500. &#8220;Since we have been expecting tariffs to be implemented, this realization only furthers our preference for consumer services over goods. It also supports our preference for financials and other domestically geared businesses that have limited currency or trade exposures,&#8221; added the Morgan Stanley CIO.
The Morgan Stanley top strategist believes that DeepSeek&#8217;s latest AI model has added another level of uncertainty for investors and reiterated his preference for software and media over semiconductors. However, BofA&#8217;s Vivek Arya stated <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43474406/nvidia-still-a-top-pick-as-microsoft-meta-stick-with-gpus-despite-deepseek-challenge-analyst">yesterday </a>&#8220;Despite DeepSeek&#8217;s supposed ‘revolutionary' optimizations, there is no change thus far to spending intentions at Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) large customers including Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>).&#8221;
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Why It Matters: In the last two weeks since President Trump&#8217;s inauguration, the market has been nearly flat, with the S&amp;P 500 slipping 0.18% since Jan. 20. Trump&#8217;s announcement of a 25% <a href="https://www.benzinga.com/markets/cannabis/25/02/43476012/trumps-canada-tariffs-bffs-for-decades-what-went-wrong-can-it-really-be-about-fentanyl-unlikely">tariff on imports from Canada and Mexico</a>, which has been postponed by a month. 
Prior to that, the announcement of <a href="https://www.benzinga.com/startups/25/02/43476917/deepseek-a-trojan-horse-kevin-oleary-calls-bs-on-deepseeks-6m-budget-claims-they-ripped-off-60k-nvidia-chips-from-the-black-market">DeepSeek unsettled the technology sector</a>, triggering a brief market selloff.
In addition to Morgan Stanley, economists at Goldman Sachs have raised concerns about the imposition of tariffs. They estimate that for every 5-percentage-point increase in the tariff rate, the S&amp;P 500&#8217;s earnings per share could decline by approximately 1% to 2%.
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Image Via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Budweiser Brewing Co APAC

<h4>Key Takeaways:</h4>

<ul>
	<li>Budweiser APAC&rsquo;s first-quarter revenues slipped 0.4% and profits fell 3.4%, sagging from elevated levels a year earlier and dampened by bad weather</li>
	<li>Market watchers say earnings may pick up in the second half, stimulated by events such as the Paris Olympics, but rivalry in the premium beer business is heating up</li>
</ul>

By Fai Pui

It&rsquo;s a bit like the downer after a party. Beer industry takings surged last year when China lifted its Covid restrictions, but the high has been wearing off.

Last week Hong Kong-listed&nbsp;Budweiser Brewing Company APAC Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BDWBY#OTC">BDWBY</a>) became the latest Asian beer producer to report that sales had fallen flat in the first quarter compared to a year earlier, when China&rsquo;s bars and restaurants were just coming back to life after the privations of the Covid pandemic.

The brewer, which sells brands such as Stella Artois, Corona and Budweiser across Asia,&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0508/2024050800063.pdf">said</a>&nbsp;its revenues slipped 0.4% in the quarter to $1.64 billion, while the volume of beer sales sank 4.8% to 2.11 billion liters.

Other beer producers have also been feeling hangover effects from last year&rsquo;s release of pent-up revelry.&nbsp;Tsingtao Brewery&nbsp;logged a 5.2% fall in year-on-year revenue for the quarter, while turnover growth at&nbsp;Beijing Yanjing Brewery&nbsp;slowed to just 1.7% from 13.7% a year earlier.

But unlike Budweiser APAC, those brewers managed to improve their bottom lines even as sales momentum moderated. To investors&rsquo; disappointment, Budweiser APAC&rsquo;s net profit actually fell 3.4% to $287 million despite a 4.4% drop in the quarter&rsquo;s cost of sales. The performance was particularly weak In China, where sales tumbled 6.2% from the year-earlier quarter and revenues took a 2.7% hit.

The sales drop in China and South Korea was chiefly to blame for the lower earnings, the company said, citing the high baseline a year earlier and extreme weather such as heavy rains in Guangdong in March. But CEO Jan Craps reaffirmed the company&rsquo;s focus on high-end beers, saying consumers will still want a taste of luxury even in challenging economic times.

Speaking at the results conference, he said high-end and ultra-premium products would be the company&rsquo;s main profit source in the medium to long term. The company applied small price hikes to its high-end brands last November but kept the cost of other products stable in view of economic conditions, he said.&nbsp;

China&rsquo;s beer production has been declining since hitting a peak of 50.65 million kiloliters in 2013. Only 34.11 million kiloliters were produced in 2020, edging up to 37.89 million kiloliters in 2023. Therefore, major players such as Tsingtao Breweries and&nbsp;China Resources Beer&nbsp;(0291.HK) have been piling onto Budweiser APAC&rsquo;s premium turf to achieve better business margins. The battle to attract high-end beer drinkers is getting ever more intense.

<h3>Superior Beer Wars</h3>

China Resources Beer, for example, has rolled out a range of premium drinks that helped to power an 18.6% jump in its annual profits last year. Consumers can choose from a high-end &ldquo;Pure Malt&rdquo;, an alcohol-free &ldquo;Heineken 0.0&rdquo; or a &ldquo;Qinshihuang CPA&rdquo;, a Chinese pale ale. The company&rsquo;s super-premium &ldquo;Nong Li&rdquo;, a strong beer, is priced at up to 1,199 yuan ($166). The brewer&rsquo;s sales of products classed as mid-grade or above rose 18.9% last year to about 2.5 million kiloliters. Some products achieved double-digit growth, with &ldquo;Heineken&rdquo; sales surging 60%.

China Resources Beer has ambitions to become the country&rsquo;s biggest seller of higher-end beers. Speaking after the release of 2023 results, Chairman Hou Xiaohai said the company was on track to achieve its goal ahead of schedule, this year or next, by doubling down on promoting its premium portfolio.

Tsingtao Brewery also ramped up its efforts at the top end of the market last year, investing in promoting its Wheat Beer, Pure Draft, 1903 and other brands. Last year its sales of mid- and high-grade drinks rose 10.5% to 3.24 million kiloliters, increasing 4.17 percentage points to 40.5% of overall sales.

In April Tsingtao Brewery told investors that the beer industry was in fierce competition for high-end sales, vowing to use its marketing strategy to gain the upper hand. Even Yanjing Brewery and Hong Kong&rsquo;s&nbsp;San Miguel Brewery&nbsp;(0236.HK)are challenging the giants by launching premium beers.

Whether all these rivals can succeed in the same exclusive space remains to be seen, as economic constraints force consumers to review their spending and in some cases to switch to cheaper brews. Commenting on the risk of &ldquo;consumption downgrading&rdquo;, Budweiser APAC&rsquo;s CEO said he thought buyers would make rational decisions, taking the pleasure of the experience into account.

Curtis Yeung, strategist at UOB Kay Hian (Hong Kong), agreed that consumption downgrading was not a major factor for Budweiser APAC for now, as the company&rsquo;s average retail price is rising. But competition in the industry was judged to be a growing problem. Yeung saw little prospect of an earnings uplift until the second half at the earliest, when European soccer championships and the Paris Olympics may stimulate beer sales.

Budweiser APAC&rsquo;s forward price-to-earnings (P/E) ratio stands at about 18 times, with a dividend yield of just 3.65%, which Yeung considers an unappealing valuation. Without any positive news for now, investors may want to check back in again later in the year when the company&rsquo;s business may be picking up.

This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

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Budweiser Brewing Co APAC

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Latest news for Budweiser Brewing Co APAC (OTC:BDWBY) Stock

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