BRIEF: Tsingtao Brewery revenue falls but profit rises in first quarter

Beer maker Tsingtao Brewery Co. Ltd. (0168.HK) on Monday reported its revenue fell 1.54% year-over-year to 10.29 billion yuan ($1.51 billion) in the first quarter. But it bucked the top-line contraction to log a 5.2% increase in profit, which reached 1.8 billion yuan for the three-month period.

The company’s cumulative product sales volume slipped 2.6% year-over-year to 2.2 million kiloliters in the quarter. Its flagship Tsingtao Beer brand outperformed, logging a 0.4% rise year-on-year to 1.38 million kiloliters. Volume for its mid- to high-end products also climbed 3.1% to 1.04 million kiloliters.

Tsingtao Brewery said it continued to improve its brand positioning and upgrade its product mix during the reporting period. The brewer ramped up efforts to develop and market its classic and mid- to high-end offerings, while accelerating the rollout of new categories such as all-malt, craft, zero-sugar, low-calorie, non-alcoholic and low-alcohol beers. As a result, the company’s product structure and profitability registered steady improvements during the quarter.

Shares of Tsingtao Brewery rose 4.8% to close at HK$52.75 on Tuesday. The stock is up about 8% this year.

By Lau Chi Hang

To subscribe to Bamboo Works weekly free newsletter, click here