CHINA: Tsingtao Brewery Co cheers strong beer demand in H1
By Chris Mercer | 15 August 2011
- 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.
Expert analysis
Tsingtao Brewery Co Limited Company Watch 2010
The Tsingtao Brewery Co Limited Company Watch report contains a detailed analysis of the company’s activities in the China beer market, looking at their portfolio and identifying volumes by price segment, beer type, alcoholic strength, local segment and modus operandi (imported, licensed or domestic). A full profile of the company contains details of ownership, company history and strategy; and the location and capacities of breweries are shown. New product development in 2009 is also highlighted. The performance of leading brands is analysed in depth, including a full set of data tables showing volumes and growth. Data from 2006 is provided and all analyses contain forecasts for 2010. The market share development of key competitors is also provided as well as an update of leading companies’ performance.
Sectors: Beer & cider, Company results, Emerging markets – BRIC
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CHINA: Tsingtao Brewery Co cheers strong beer demand in H1
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