China

Kweichow Moutai Posts 60.31% Increase in Net Profit for the First Nine Months of 2017

Summary:

  • In a statement to the Shanghai Stock Exchange, Kweichow Moutai (600519.SS) posted a 60.31% increase in net profit to RMB 19.98 billion for the first nine months of 2017.
  • The company also recorded a 59.4% increase in revenue to RMB 42.45 billion.
  • EPS was RMB 15.91.

Why It Matters:

  • Increases in Kweichow Moutai’s revenue and net profit were mainly due to an increase in sales. Specifically, during the first nine months of 2017, sales of the company’s high-end key product, Moutai Liquor, totaled RMB 38.4 billion; sales of the company’s lower-end range, specifically multiple “series liquor” products, totaled RMB 4 billion.
  • During the first nine months of 2017, the company’s total sales in the domestic market were RMB 41 billion and sales in overseas markets totaled RMB 1.43 billion.
  • In addition, during this period, the number of the company’s domestic agents increased by 634 to 2,965 and the number of overseas agents increased by 19 to 104.