China Resources Beer (Holdings) Company (0291) H2 2023 earnings summary

Executive summary

• FY2023 turnover rose 10.4% to RMB38,932m; EBIT increased 33.2% to RMB6,961m and profit attributable to shareholders grew 18.6% to RMB5,153m.

• Beer premiumization and the Guizhou Jinsha acquisition expanded the business mix; Baijiu contributed RMB2,067m turnover.

Financial highlights

• FY2023 revenue was RMB38,932m versus RMB35,263m; gross profit rose to RMB16,103m from RMB13,561m.

• Reported FY2023 EBIT was RMB6,961m, up 33.2%; EBIT excluding special items was RMB7,102m, up 30%.

• Profit attributable to shareholders was RMB5,153m, up 18.6%; basic EPS was RMB1.59 versus RMB1.34.

Outlook and guidance

• 2024 priorities include balanced growth in income, profit and beer volume, including sub-premium and above; management remains cautious amid market uncertainty.

• Beer plans emphasize premium brands, channel marketing, organizational transformation, manufacturing excellence, digitalization and low-carbon operations.

• Baijiu plans focus on the three-year “Explore, Develop, and Become Stronger” agenda and synergies across sales, branding, supply chain, manufacturing and risk control.