CHINA: Tsingtao Brewery Co profits come in flat in YTD
- YTD net profits rise by 1.1% to CNY1.683bn
- Sales up by 13.7% to CNY21.795bn in nine months to end of September
- Beer volumes increase by 12.8% to 68.2m hectolitres
- Sales of flagship Tsingtao brand up by 10.2% to 36m hl
Tsingtao saw profits flat in the nine months to the end of September
Tsingtao Brewery Co has reported flat profits in the year-to-date with raw material price hikes and rising labour costs offsetting a lift in sales.
Net profits in the nine months to the end of September edged up by 1.1% to CNY1.68bn, the brewer said earlier today (30 October). Sales in the same period increased by 13.7% to CNY21.79bn.
However, profits were up only slightly in the year so far compared to the group's H1 results.
Volumes gained 12.8% to 68.2m hectolitres in the year-to-date, while sales of its flagship beer brand, Tsingtao, up by 10.2% to 36m hectolitres.
In Q3, net profits were flat at CNY675.2m, the company said.
Tsingtao pointed to raw material price hikes and rising labour costs as reasons for the performance. But, the company tried to negate this by strengthening its marketing activities around the London Olympics.
It added: "The company’s growth rate of sales volume of beer was higher than the average rate of the beer industry."
To view Tsingtao's statement, click click here.
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