CHINA: Tsingtao Brewery Co grows share in FY as sales, profits rise in 2012

• Full-year net profits up by 2.6% to CNY1.84bn (US$193.3m)
• Net sales in 2012 climb by 11.3% to CNY25.78bn
• Operating profits come in flat, down by 0.2% to CNY2.14bn
• Volumes out-pace overall beer market, rising by 10.5%

Tsingtao Brewery Co has posted rising sales and profits for 2012, as volumes increased markedly in the year.

The Chinese brewer, which is almost 20%-owned by Japan's Asahi, said earlier this week that net profits in 2012 came in 2.6% up on 2011 at CNY1.84bn (US$193.3m). Net sales in the year jumped by 11.3% to CNY25.78bn, although operating profits slipped by 0.2% to CNY2.14bn.

Sales volumes in the year were up by 10.5% to 79m hectolitres, with total beer market volumes in China rising by a lesser 3.1%, said Tsingtao.

Volumes of the company's flagship namesake beer increased by 7.3%, while “high-end products including the draft beer and canned beer” delivered a volumes leap of 17%.

Looking forward, the brewer said: “The contradiction between the fast growth of output capacity of the domestic leading breweries and the slow-down of the growth of beer market intensifies the competition in the beer industry.”

Consequently, efforts will focus on driving volumes of its “high-value-added products” to help off-set rising raw material and labour costs. Tsingtao is hoping to hit volumes of 100m hectolitres in 2014.

To read the company's official announcement, click here.