CHINA: Tsingtao Brewery nine-month profits rise
- Nine-month net profits up by 11.4% to RMB1.66bn (US$261m)
- Net sales up 17% to RMB18.89bn
- Strong volume growth drives performance, but profits dip in Q3
Tsingtao Brewery outpaces China beer market growth
Tsingtao Brewery has reported a healthy rise in profits for the first nine months of its fiscal year, driven by strong demand for its namesake beer brand.
Net profits for the nine months to the end of September reached RMB1.66bn (US$261m), up 11.4% on the same period of last year, Tsingtao said yesterday (27 October). A 14.5% increase in volume sales and a 17% rise in net sales, to RMB18.89bn, drove the performance.
China's beer market continued to expand rapidly, with sales of Tsingtao lager up by almost 18% in volume for the nine months. The results suggest Tsingtao has gained market share so far in 2011, with beer output in China up by 8.6% over the same period, according to the country's National Bureau of Statistics.
Tsingtao said: "Although the price of raw materials were still high, and the competition in the market became more and more severe, the company still maintained the continuous growth of beer sales volumes at a faster speed than that of the whole beer industry."
The third quarter, however, provided signs that higher costs are putting stronger pressure on the brewer. Net profits for the three months to the end of September dipped by 0.9%, to RMB674m, said the group, which is 20%-owned by Japan's Asahi Breweries.
For the company's announcement, click here.
An Asahi Group move for StarBev looks dubious, even if the reports are true....
Kingway's controlling shareholder, state-owned GDH, is set to profit from growing rivalry among multinational brewers in China....
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