On March 2, Budweiser Asia Pacific Holdings Co., Ltd. released its annual results until December 31, 2022.
1. Main data and analysis
According to the report, in 2022, the total sales volume of Budweiser Asia Pacific will be 8.8491 billion liters, a slight increase of 0.7% year-on-year (endogenous increase of 0.7%); revenue is US$6.478 billion, a year-on-year decrease of 4.57% (endogenous increase of 2.4%); The profit was US$913 million, a year-on-year decrease of 3.89%.
The report shows that despite the external resistance of China’s channel restrictions throughout the year, sales will continue to grow in 2022. The group attributes the growth to the strong growth momentum of South Korea and India.
2. Main market analysis
Budweiser Asia Pacific stated that in the 2022 fiscal year, China’s channels (especially nightclubs and restaurants) were closed on a large scale and on a large scale, which affected the group’s performance throughout the year and also weakened the positive impact of its high-end strategy. Due to the severe impact of the epidemic restrictions on the channel and geographical mix, sales volume fell by 3%, lagging behind the group’s expected industry level.
However, the financial report also pointed out that the impact of the Chinese market was partially offset by the strong performance of the Korean and Indian markets.
At the same time, Budweiser Asia Pacific’s high-end strategy continues to be promoted in expansion regions. In fiscal year 2022, even under the impact of epidemic restrictions, sales of Budweiser and ultra-high-end products still recorded double-digit growth in more than half of the expanded cities .
Budweiser Asia Pacific will continue to invest in its craft brewing portfolio in China. In the fourth quarter of 2022, the group has expanded three new locations for brewery stores and added the Brewdog brand to the supply of craft beer products.
Budweiser Asia Pacific recently launched the “Budweiser Master Year of the Rabbit Packaging Edition” as one of the innovative projects to celebrate the Chinese New Year. The alcohol content of this beer product is higher than 10.8%. Offering consumers a multi-sensory experience, this is the latest example of Budweiser Asia Pacific meeting the growing demand for new products and differentiated drinking experiences, and further raising the bar for ultra-premium beers.
In terms of digitization, Budweiser Asia Pacific’s B2B distributor-customer interaction platform “BEES” has expanded to more than 160 cities. The revenue brought by BEES accounted for more than 40% of Budweiser Asia Pacific’s revenue in China in December.
3. Environment, society and regulation
In fiscal year 2022, Budweiser Asia Pacific has made significant progress in the environmental, social and regulatory fields. MSCI upgraded its rating to AA and “Environmental, Social and Regulatory Leader” in the global 50 beverage industry.
4. Outlook for 2023
Budweiser Asia Pacific stated that in 2023 the group will achieve sustainable growth through a clear and effective three-pillar strategy:
1. Leading the continuous growth of different categories – achieved through five major measures: leading the growth of the high-end market; taking root in the ultra-high-end blue ocean market; promoting the development of more diversified channels; Scale up with a clear focus
2. Realize digitalization and digital ecosystem – develop integrated growth through the combination of digital consumers, digital customers, and digital supply chain
3. Optimizing the Group’s business – through operational optimization, large-scale profitability and continuous leadership in ESG as a model for the industry
Budweiser Asia Pacific estimates that almost all restaurants and nightclub channels in its business scope will reopen by the end of February. In view of the current recovery situation, the Group remains optimistic about the business recovery in 2023 after the transitional quarter in the first quarter of 2023.