CHINA: Tsingtao Brewery reports strong H1
- Higher margin beers lift sales, profits
- Volumes expand slower than market average
- Group continues focus on cost control
Tsingtao Brewery H1 profits leap
China's Tsingtao Brewery has reported strong rises in sales and profits for the first half of 2010 thanks to consumer demand for the firm's more profitable beers.
Tsingtao Brewery saw net sales for the six months to the end of June rise by 10% on the same period of 2009, to RMB9.8bn. Cost controls and strong consumer demand for higher margin beers, like Tsingtao Draft, canned beer and newly launched Tsingtao Bingchun, helped net profits to increase by 30% to RMB830m, said Tsingtao late last week.
The Chinese brewer said that it benefited from continued growth in China's economy. The country's beer market expanded by 5% in volume over the six months, to 212m hectolitres, it said.
However, Tsingtao's volume sales increased more slowly, by 3%, for the half-year period. This was despite a 15% rise in volume sales for the Tsingtao brand.
At the same as selling higher margin beers, Tsingtao said that it sought to further cut costs across its business. "The company promoted the optimisation of its supply chain to improve the efficiency of supply plan, realise the purchase in large scale, reduce the purchasing cost and improve the utilisation ratio of production capacity in its plants," said the firm, which is 20%-owned by Japan's Asahi Breweries.
For the full announcement, click here.
Japan's brewers are toasting the first monthly rise in domestic beer and quasi-beer shipments since September, according to recent figures....
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