BUD APAC (01876.HK): Internal Reorganisation and India Receivables Provision to Weigh on Quarterly Profit

NewTimeSpace News: On 4 October 2026, Budweiser Brewing Company APAC Limited (stock code: 01876) published an inside information announcement: during the quarter ended 30 September 2026, the Group carried out an internal reorganisation involving certain of its PRC subsidiaries (including Budweiser Sedrin Brewery Co., Ltd.) to enhance the Group's capital efficiency; as a result of the reorganisation, the Group expects to record a non-underlying withholding tax expense of approximately US$52 million.

The Group supplies beer products to the government beverages corporation of Telangana, India, and certain of the Group's receivables remain outstanding and overdue. Given the prolonged delay in payment, the Group, on a prudent basis, will recognise a provision of approximately US$30 million in respect of such receivables in its results for the three months ended 30 September 2026; the year-on-year movement will be reported as a scope change and has no impact on the Group's organic growth. The Group will continue to use its best efforts to recover the outstanding amounts and take all necessary actions to protect the interests of the Group and its shareholders.

The announcement stated that the above matters will have a negative impact on profit attributable to equity holders of the Group for the three months ended 30 September 2026; the information has not been reviewed or audited by the Group's external auditors and the actual amounts and impacts may differ from those disclosed.

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