China Resources Beer (Holdings) Company (0291) H1 2024 earnings summary

Executive summary

• Turnover for H1 2024 was RMB23,871 million, nearly flat year-over-year, with profit attributable to shareholders up 1.2% to RMB4,705 million, driven by premiumisation in beer and baijiu.

• Interim dividend per share increased 30% to RMB0.373, with payout ratio rising from 20% to 26%.

• Net cash from operating activities rose 25.6% year-over-year, reflecting strong cash generation.

• Premiumisation strategy drove over 10% year-over-year growth in premium beer sales volume; Heineken®, Lao Xue, and Amstel sales volumes rose over 20%.

• Baijiu business turnover increased 20.6% year-over-year, with flagship product Zhaiyao sales up over 50%.

Financial highlights

• 1H2024 turnover was RMB23,871 million, down 0.5% year-over-year; beer business turnover fell 1.4%, baijiu business rose 20.6%.

• Gross profit increased 1.3% to RMB11,139 million; gross margin up 0.9 points to 46.9%; EBITDA margin up 0.9 points to 31.7%.

• Profit attributable to shareholders grew 1.2% to RMB4,705 million; basic EPS up to RMB1.45.

• Net cash from operating activities rose 25.6% to RMB6,012 million; net cash position at period end was RMB5,139 million.

• Net assets per share increased to RMB10.13; equity attributable to shareholders rose to RMB32.87 billion.

Outlook and guidance

• Ongoing focus on premiumisation, digital transformation, and cost efficiency to drive long-term growth.

• Continued expansion of premium and sub-premium beer segments, leveraging Heineken® and Snow Draft Beer.

• Baijiu business to further develop flagship and regional brands, with emphasis on sustainable growth and operational excellence.

• Management aims to control capital expenditure, maintain healthy cash flow, and pursue annual turnover and profit growth.

• The company aims to leverage its 30th anniversary to further premiumisation and dual-engine growth.