News

China Resources Beer grows profits as market flatlines

Most popular

Pernod breaks boundaries with Chinese distillery

Let your brand creativity go wild at festivals

New Remy Cointreau CEO - just-drinks thinks

Pernod on its Chinese whisky project - Interview

Chapoulaud-Floquet's Remy legacy - j-d thinks

MORE
  • FY net profits up 14% to HKD831m (US$107m)
  • Net sales in 2015 increase by 1% to HKD34.8bn
  • Operating profits for beer up 12% to HKD1.7bn
  • Snow volumes down 1%

China Resources Beer has celebrated divesting its non-beer operations with a double-digit jump in full-year profits, despite flat sales in the period.

The company, which last year sold its retail, food and soft drinks businesses to parent company China Resources Holdings for HKD30bn (US$3.9bn), said this week that net profits from its continuing operations jumped by 14% in the 12 months of 2015 to HKD831m. The increase came as sales edged up marginally by 1% to HKD34.8bn, with management saying growth was driven by continued product mix upgrades.

Click here for the facts on CR Beer and the world's largest beer brand, Snow

CR Beer, though its CR Snow Breweries joint-venture with SABMiller, has successfully increased its margins over the past few years by moving up the value chain. In 2015, 49% of sales volumes came from the above-mainstream segment, which comprises beers that retail for more than CNY5 (US$0.80) per 50cl. In 2012, the above-mainstream category accounted for 29% of CRB's volumes.

Last year's increases came in the face of a declining beer market in China, according to CR Beer. Looking ahead, the company said there remains room for growth in the China market as average consumption still lags more developed beer markets.

The company also said the beer market will be further consolidated over the medium term, "especially at the expense of smaller regional players".

Last month, CR Beer agreed a deal with Anheuser-Busch InBev to buy SABMiller's 49% interest in CR Snow for US$1.6bn, giving it full control of the Snow brand. Snow has been the world's largest beer brand by volume since 2008. Currently, CR Beer owns 51% of the CR Snow JV with SABMiller.


Sectors: Beer & cider, Company results

Companies: SABMiller

Related Content

Heineken links up with China Resources Enterprises in US$3.1bn deal

Heineken links up with China Resources Enterprises in US$3.1bn deal...

China Resources Beer and the world's largest beer brand, Snow - The facts

China Resources Beer and the world's largest beer brand, Snow - The facts...

Heineken unlikely to loosen tight control over China assets - analyst

Heineken unlikely to loosen tight control over China assets - analyst...

Is Heineken risking too much to chase Anheuser-Busch InBev in China? - Comment

Is Heineken risking too much to chase Anheuser-Busch InBev in China? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?