The Chinese brewing concern, Harbin Brewery Group Ltd, posted a net profit of HK$45.76m (US$5.86m) in the first six months of the current fiscal year, down by 14% from HK$53.22m in the first half of last year.
Harbin, the country’s fourth largest brewer, attributed the decline to the impact of the SARS epidemic which squeezed business in bars and restaurants.
“With stringent cost-control measures and effective management practices, the group is set to recapture its market share and a higher profit margin in the second half of this year, so as to make up for the undesirable outcomes caused by SARS,” said CEO, Peter Lo.
Turnover in the first six months rose by 20% to HK$658.1m but Harbin said the percentage of sales represented by premium brands declined. The company’s premium beer sales to restaurants and bars fell by 20% in May and June, the company said.
Earlier in the year, Harbin agreed to sell a 30% stake to the international beer group, SABMiller.
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