On November 14, Tsingtao Brewery Company Limited held its Q3 earnings briefing, with Chairman Jiang Zongxiang and CFO Hou Qiuyan addressing investor inquiries online.
In the first three quarters of the year, Tsingtao Brewery reported revenue of RMB 29.37 billion, up 1.4% year-on-year, with net profit attributable to shareholders rising 5.7% to RMB 5.27 billion. While growth improved compared to the same period last year, a closer look reveals persistent challenges.
Quarterly breakdown shows Q1 revenue at RMB 10.446 billion (+2.91% YoY), slowing to RMB 10.046 billion (+1.28% YoY) in Q2. Q3 revenue fell 0.17% YoY to RMB 8.876 billion, down 11.65% quarter-on-quarter. Net profit followed a similar trend: Q1 at RMB 1.71 billion (+7.08% YoY), Q2 at RMB 2.194 billion (+7.32% YoY), but Q3 dropped to RMB 1.37 billion (+1.62% YoY), plunging 37.55% QoQ.
Analysts attribute the slowdown to weak餐饮 consumption and policy factors like alcohol restrictions. Data shows Tsingtao sold 6.894 million hectoliters in the first nine months (+1.6% YoY), with Q3 volume growth decelerating to 0.32%. Average selling price declined 0.19% YoY to RMB 4,259.79/hectoliter, with Q3 down 0.49%, likely due to increased discounts.
Jiang acknowledged sluggish啤酒 market recovery but emphasized strategic focus on brand strength, product optimization, and channel expansion. The company launched new products like light-dry beer and cherry-flavored wheat beer while expanding instant retail channels.
Diversification efforts remain stagnant. A March plan to transfer Qingdao Beverage Group’s equity to Tsingtao’s parent saw no progress, with Jiang citing operational differences. Separately, the acquisition of Jimo Huangjiu collapsed after five months due to unmet preconditions, following RMB 100+ million in frozen equity since September.
When asked about future non-beer acquisitions, Jiang reaffirmed commitment to diversification but offered no concrete plans.
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