Kweichow Moutai’s sales rose 17.2%, but the beverage giant still lost its top spot as China’s most valuable company.
Kweichow Moutai, the world’s largest alcohol producer, saw bumper sales of its baijiu line in 2023 and forecast net sales to rise 17.2% over the year to 149.5 billion yuan (£16.55 billion / US$21.08 billion).
This is a significant improvement on the company’s previous forecast, which called for a 15% increase over the course of the year.
As a result, the company expects net profit of around 73.5 billion yuan (£8.14 billion/US$10.36 billion).
Kweichow Moutai has expanded its product range to attract younger age groups in China and, according to financial analyst group Caixin Global, its latest range extension is a partnership with private chocolate giant Mars to launch a chocolate infused with alcohol.
The chocolate, which has received positive reviews, is Moutai’s latest effort to give its products added appeal through partnerships with well-known consumer brands.
Joe Mug
Last fall, Chinese chain Luckin Coffee collaborated with Moutai to create a new product called “soy sauce latte,” which adds baijiu to Luckin’s coffee.
The coffee chain said it sold more than 5.42 million cups of Moutai alcohol-infused lattes on launch day, worth more than 100 million yuan (US$13.69 million).
In 2022, Kweichow Moutai opened its first ice cream shop offering up to 14 flavors infused with baijiu.
Despite the latest strong sales figures, Kweichow Moutai lost its top spot on the stock markets as China’s most valuable company last year.
Mobile communications company Tencent took the top spot, while Alibaba was second, with Kewichow moving to third place.
During 2023, its shares fell 10.5% to stand at 1,726 yuan per unit today. The decline was largely due to foreign investors cashing in on earlier gains before fearing China could see a slowdown in its economic growth rate in 2023.
However, market observers and financial advisers agree that the state-controlled group’s shares are expected to rise strongly this year.
At the current price, there are 49 buy recommendations and no sell advice.
2024-01-02 10:29:20
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