Tsingtao Brewery Company (168) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was RMB8.89 billion, down 5.28% compared to the same quarter last year.

• Net profit attributable to shareholders for Q3 2024 was RMB1.35 billion, a decrease of 9.03% year-over-year.

• For the first three quarters of 2024, revenue reached RMB28.96 billion, down 6.52% year-over-year, while net profit attributable to shareholders rose 1.67% to RMB4.99 billion.

• Product sales volume for the first three quarters was 6.785 million kl, with core brand "Tsingtao Beer" at 3.835 million kl and mid- to high-end products at 2.779 million kl.

• Operating revenue per kl of beer increased 0.49% year-over-year.

Financial highlights

• Net profit after deducting non-recurring items for Q3 2024 was RMB1.26 billion, down 7.94% year-over-year.

• Net profit after deducting non-recurring items for the first three quarters was RMB4.69 billion, up 1.96% year-over-year.

• Basic earnings per share for Q3 2024 was RMB0.989, down 9.35% year-over-year; for the first three quarters, RMB3.667, up 1.52%.

• Net cash flows from operating activities for the first three quarters were RMB6.23 billion, up 22.55% year-over-year.

• Weighted average return on net assets for Q3 2024 was 4.63%, down 0.79 percentage points year-over-year.

Outlook and guidance

• The company faced sluggish domestic beer market consumption but continued to focus on product innovation, upgrading product mix, and increasing marketing efforts.