Bud APAC (01876.HK) announced its business performance for the first three quarters of this year ending in September, with revenue of 5.104 billion US dollars (same below), down 8.3% year-on-year. Net profit was 0.742 billion yuan, a decrease of 15.2% year-on-year; basic earnings per share were 5.62 cents.

During the period, the company's total sales volume was 7.12 billion liters, down 7.7% year-on-year, impacted by the slowing performance in the Chinese industry, but partially offset by the strong performance in South Korea. Revenue growth per hectoliter internally rose by 2.2%. Normalized profit was 0.777 billion yuan, down 11.6% year-on-year. Gross margin increased by 0.4 percentage points to 51.4%.

In the third quarter alone, the group's revenue was 1.705 billion yuan, down 10.1% year-on-year. Net profit was 0.201 billion yuan, a decrease of 33% year-on-year. Revenue growth per hectoliter internally increased by 2.2%, primarily driven by revenue management measures in the Asia Pacific region's eastern part and favorable product mix in various countries in the Asia Pacific region, but partially offset by the high base and unfavorable channel mix in China. Normalized profit fell by 25% to 0.225 billion yuan. Total sales volume decreased by 10.9% to 2.463 billion liters.

In terms of internal growth, in the third quarter, the group's sales volume in the Asia Pacific region's western part decreased by 13.5%, with a respective decrease of 15.1% and 1.9% in revenue and revenue per hectoliter. For the first three quarters, sales volume decreased by 9.4%, with a respective decrease of 10.2% and 0.9% in revenue and revenue per hectoliter. Sales volume in the Asia Pacific region's eastern business increased by 3.9% in the third quarter, with a respective increase of 15.7% and 11.4% in revenue and revenue per hectoliter; for the first three quarters, sales volume increased by 2.2%, with a respective increase of 14.3% and 11.8% in revenue and revenue per hectoliter.

In the third quarter, sales volume in China decreased by 14.2%, revenue fell by 16.1%, and revenue per hectoliter dropped by 2.1%; for the first three quarters, sales volume decreased by 10.6%, revenue decreased by 11.6%, and revenue per hectoliter decreased by 1.2%. The India business recorded double-digit net revenue growth for high-end and super-premium product mix in the third quarter; driven by the double-digit net revenue growth of high-end and super-premium product mix for the first three quarters. High-end and super-premium categories accounted for more than two-thirds of the group's revenue. Sales volume in the South Korea business rose in the mid-single digits in the third quarter, while revenue increased in the mid-teens.

Chief Executive Officer and Co-Chairman Yang Ke stated that in the first nine months, South Korea and India continued their commercial growth momentum, driving market share and revenue per hectoliter to keep growing. While the group remains confident in the long-term trend of high-endization in the Asia Pacific region, it continues to invest in brands and capabilities to execute its strategy and remain confident in the long-term high-endization trend in the Asia Pacific region.