China’s Tsingtao Brewery has reported strong rises in beer sales and profits for its fiscal third quarter, driven by increases in efficiency and production capacity.
Tsingtao’s net sales rose to RMB16.1bn (US$2.4bn) for the three months to the end of September, up by 11% on the same period of 2009, the brewer said yesterday (19 October).
Sales were driven by a 7% increase in volumes, which was in turn driven by a 17% rise in volume sales of the firm’s flagship Tsingtao lager brand. High-end Tsingtao lagers, including new draft beer Yi Pin, boosted sales revenue.
The results show that Tsingtao has taken advantage of favourable conditions on China’s beer market in recent months, as reported by rival brewer SABMiller earlier this week. Tsingtao’s sales momentum will also be welcomed by Asahi Breweries, which owns 20% of Tsingtao and is reliant on the Chinese brewer’s success to help it become less dependent on a sluggish Japanese beer sector.
Tsingtao’s profits rose by 13% to RMB694.7m for the quarter, helped by ongoing efforts to increase efficiency at the firm’s breweries.
The group said that it “rapidly increased” production capacity during the quarter, with relocation, expansion and building projects underway at several plants. It also acquired Jiahe Brewery Co in September for RMB170m.
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By GlobalData