China Resources Beer (Holdings) Company (0291) H2 2024 earnings summary

Executive summary

• Achieved solid performance in FY2024, with EBITDA and gross profit growth despite a slight decline in turnover year-over-year; consolidated turnover was RMB38.6 billion, supported by premiumisation in beer and baijiu businesses.

• Premiumisation strategy in beer business drove higher ASP and margin improvements; HeinekenⓇ sales volume grew nearly 20%.

• Baijiu business entered development phase, focusing on brand building, process optimisation, and digital transformation.

• ESG performance improved, with most 14th Five-Year Plan EHS targets met ahead of schedule and multiple awards received; MSCI ESG rating upgraded to A.

• Net cash from operating activities surged 67% year-over-year to RMB6.93 billion.

Financial highlights

• FY2024 turnover: RMB38,635m, down 1% year-over-year; gross profit margin rose 1.2 percentage points to 42.6%, a five-year high.

• EBITDA (excl. special items): RMB8,694m, up 3% year-over-year; EBIT was RMB6.57 billion.

• Net cash from operating activities: RMB6,928m, up 67% year-over-year; net cash position at year-end was RMB3.86 billion.

• Basic EPS: RMB1.46, down from RMB1.59 in 2023; DPS: RMB0.76, up 19%.

• Dividend payout ratio: 52%, up 12 percentage points; final dividend of RMB0.387 per share proposed.

Outlook and guidance

• Cautiously optimistic for 2025, expecting turnover growth and profit recovery in beer business.

• Premiumisation and cost management to remain key drivers; HeinekenⓇ expected to sustain double-digit growth.

• Baijiu business to focus on brand matrix, digitalisation, and supply chain optimisation.