CHINA: Tsingtao Brewery Co profits come in flat in YTD
By James Wilmore | 30 October 2012
- 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
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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."
Shares in Tsingtao were today down 0.37% at CNY30.68.
To view Tsingtao's statement, click 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
Companies: Tsingtao
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