Tsingtao Brewery Company (168) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2024 was RMB20.07 billion, with net profit attributable to shareholders rising 6.31% year-over-year to RMB3.64 billion, despite a sluggish domestic beer market recovery and a 7.06% decline in revenue compared to the same period last year.

• Sold 4.63 million kilolitres of products, with core brands reaching 2.61 million kilolitres and mid- to high-end products at 1.896 million kilolitres, driving a 1.0% year-over-year increase in revenue per kilolitre.

• Focused on product innovation, digital transformation, and cost control, resulting in improved profitability and market share in both domestic and international markets.

Financial highlights

• Operating income: RMB20.07 billion, down 7.06% year-over-year; net profit attributable to shareholders: RMB3.64 billion, up 6.31% year-over-year.

• Basic and diluted EPS: RMB2.672 (vs. RMB2.516 in prior year).

• Gross margin improved as cost of sales declined to RMB11.72 billion from RMB13.13 billion year-over-year.

• Net cash flow from operating activities: RMB5.71 billion, up 24.2% year-over-year; cash at bank and on hand increased to RMB24.47 billion from RMB19.28 billion at year-end 2023.

• No interim dividend was proposed for the period; cash dividend of RMB2.00 per share for 2023, totaling RMB2.73 billion, was distributed.

Outlook and guidance

• Continued focus on high-quality development, product innovation, and digital transformation to drive future growth.

• Ongoing expansion in international markets, with products sold in over 120 countries and regions.

• Investment in intelligent manufacturing and new production bases to support long-term competitiveness.

• Focus remains on expanding mid- and high-end product market share and strengthening international presence.