Update | CR Beer’s interim profit up 93.4pc on strong Snow brand sales, but growth still below expectations
Chinese breweries are recovering from stagnated beer consumption in recent years, as the results showed
China Resources Beer, the country’s biggest brewer, reported a 93.4 per cent increase in interim profits on Monday on the back of rising revenues from its wholly owned Snow Beer brand.
The company’s net profit for the 6 months to June rose 93.4 per cent to 1.2 billion yuan (US$180 million), or 0.36 yuan per share, from 605 million yuan in 2016, putting it slightly behind a Reuters analyst consensus estimate of 1.3 billion yuan for the period.
Revenue was up 3.7 per cent to 15.8 billion yuan for the first half, up from 15.2 billion yuan in 2016.
The company proposed an interim dividend of 0.07 yuan, while no interim dividend was declared last year.
Asked if the company had any target firms in mind for future acquisitions, CR Beer chief executive Hou Xiaohai said the company will focus on the craft and imported beer segments, eyeing firms that could help expand its product distribution channels as well as diversify product types.
“Now the craft beer segment accounts for only a tiny fraction of the whole beer market in China, so it still has huge potential to grow,” he said.
Looking ahead, the company said it would continue to develop its premium brands.
