Kweichow Moutai (600519) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 81.93 billion, up 17.76% year-over-year, with net profit attributable to shareholders at RMB 41.70 billion, up 15.92% year-over-year.

• Core business remains the production and sale of Moutai and series liquors, with strong brand value and global market presence.

• Production of base liquor for Moutai and series liquors totaled 39,100 tons and 22,700 tons, respectively, with stable quality.

• Brand value reached USD 85.57 billion, ranking 2nd among Chinese brands and 18th globally in 2024 BrandZ rankings.

Financial highlights

• Operating income: RMB 81.93 billion, up 17.76% year-over-year.

• Net profit attributable to shareholders: RMB 41.70 billion, up 15.92% year-over-year.

• Basic and diluted EPS: RMB 33.19, up 15.88% year-over-year.

• Operating cash flow: RMB 36.62 billion, up 20.52% year-over-year.

• Gross margin remained high, with main business cost at RMB 6.64 billion.

Outlook and guidance

• Management reports “time half, task half” progress, laying a solid foundation for full-year targets.

• Domestic demand continues to recover, with consumption expected to further expand and upgrade.

• No interim dividend or capital increase from reserves proposed for the half-year.