China Resources Beverage (Holdings) Company (2460) H2 2024 earnings summary

Executive summary

• Retail sales of packaged water outpaced industry growth, with beverage revenue CAGR at 40% over three years and beverage products growing 30.8% to 10.3% of revenue, establishing a second growth curve.

• Net profit grew 24.7% year-over-year, driven by cost reduction and efficiency improvements, reaching RMB1,661 million.

• Revenue reached RMB13,521.2 million in 2024, up 0.05% year-over-year.

• Production capacity increased by 21% with new lines and optimization of manufacturing partners.

• Received 15 industry awards, including top 10 packaged drinking water enterprise and sustainability accolades.

Financial highlights

• Gross profit rose 6.0% to RMB6,397 million, with gross margin improving to 47.3%.

• Net profit increased 24.7% to RMB1,661 million, with net margin at 12.3%.

• Cash and bank balances surged 79.0% to RMB10,647 million.

• Basic EPS was RMB0.79, up from RMB0.66 year-over-year.

• Distribution and selling expenses decreased 0.7% to RMB4,058.4 million; administrative expenses fell 1.6% to RMB295.7 million.

Outlook and guidance

• Continued focus on expanding beverage category, sports marketing, and leveraging brand strength, product innovation, and digitalization to drive growth.

• Ongoing execution of the "14th Five-Year" strategic plan and continued investment in R&D, channel development, and production capacity.