Tsingtao Brewery Company (168) H2 2024 earnings summary

Executive summary

• 2024 saw a sluggish recovery in China's beer market, with Tsingtao's sales volume at 7.538 million kl and revenue of RMB 32.14 billion.

• Net profit attributable to shareholders rose 1.8% year-over-year to RMB 4.34 billion; adjusted net profit up 6.2%.

• Online sales grew 21% year-over-year, marking 12 consecutive years of growth.

• Tsingtao Beer was recognized as the World's Strongest Beer Brand in 2024 by Brand Finance.

• The company continued to expand internationally, with products available in over 120 countries.

Financial highlights

• Revenue declined 5.3% year-over-year to RMB 32.14 billion; cost of sales fell 7.7% to RMB 19.21 billion.

• Operating profit increased to RMB 5.84 billion from RMB 5.74 billion year-over-year.

• Net profit attributable to shareholders reached RMB 4.34 billion, up from RMB 4.27 billion.

• Basic EPS was RMB 3.191, up from RMB 3.139; diluted EPS was RMB 3.187, up from RMB 3.132.

• Proposed final dividend of RMB 2.20 per share, up from RMB 2.00 per share last year.

Outlook and guidance

• The company will focus on high-quality development, innovation, and digital transformation.

• Plans to strengthen core brands, expand high-end product lines, and accelerate international growth.

• Expects continued market competition and subdued consumer demand in 2025, but sees opportunities from technological innovation and consumption stimulation.