Kweichow Moutai profits soar 25% in Q1
Chinese baijiu producer Kweichow Moutai has reported a 25% leap in net profit in its first quarter financial results.
Kweichow Moutai has reported a 25% leap in net profit in its Q1 financial resultsThe firm, which is the world’s most valuable alcoholic drinks company, reported first quarter net profit at Rmb6.1bn (uS$886m), according to the Financial Times – trouncing the company’s forecast of 15.9%.
Despite the double-digit growth, the brand continues to feel the impact of Chinese President Xi Jinping’s ongoing anti-corruption campaign, which sees a crackdown on spending by officials including premium spirits gifting.
Li Baofang, Moutai party secretary and general manager, said the company would begin producing baijiu year-round to “maintain price stability amid surging demand”, the report says.
The global baijiu category has overtaken whisky to become the most valuable spirit by market share – the world’s top brands now have a collective value of over US$22 billion.
