Kweichow Moutai revenue growth slows, but stock up by 62pc, so farBusiness | 18 Jul 2019 1:50 pm
Kweichow Moutai Co’s revenue grew by 17 percent in the first half compared with a year earlier -- a strong showing for most mature consumer brands. But by the high standards of China’s premier grain liquor, it is underwhelming.
For the world’s most profitable distiller, which also briefly became China’s first 1,000-yuan stock, revenue growth is the slowest since 2016 and has dipped below its 10-year average, according to data compiled by Bloomberg.
Moutai reported revenue of 41.2 billion yuan yesterday and a net income of 20 billion yuan, 27 percent more than a year before. Moutai shares dropped by 0.9 percent in Shanghai trading early today, falling for a fourth straight day after reporting preliminary results last week.
The stock is up by 62 percent this year, and touched an all-time high on July 1.
The latest earnings show that the distiller has its work cut out in the second half if it wants to maintain a winning streak that’s seen it consistently topping its own estimates.