CHINA: Tsingtao Brewery Co cheers strong beer demand in H1
- Half-year net profits up by 20.2% to RMB1bn (US$156.4m)
- Net sales rise by 21.4% to RMB12bn
- Operating profits increase by 27.2% to RMB1.28bn
- Brewer outpaces China's beer market, cost savings hold off higher costs
Tsingtao Brewery Co reports strong half-year figures
Tsingtao Brewery Co has seen demand for its beers outpace the growth of China's beer market in the first half of 2011.
Tsingtao's volume sales jumped by 20.6% for the six months to the end of June, to 37.5m hectolitres, with volumes of its namesake brand up by 23%. That compares to growth of 11.4% for the overall beer market in China over the same period, the group said late last week.
Net sales rose by 21.4% on the same six months of 2010, to RMB12bn (US$1.88bn), said Tsingtao, which is 20%-owned by Japan's Asahi Group. The group said that it was forced to raise prices due to higher raw materials costs.
Tsingtao's cost of sales rose by 24% for the half-year. However, alongside price increases, the group said that efficiency savings - a major focus for the company in 2011 - helped to offset cost pressures. Operating profits increased by 27% to RMB1.28bn, while net profits rose by 20% to RMB1bn.
The firm said that it has begun expansion projects at several breweries in anticipation of stronger consumer demand for beer in China. These include the construction of a 2.5m-hectolitre brewery in Jieyang, Guangdong Province.
For the company's announcement, click here.
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