Beer sales up but profit down

Budweiser Brewing Company APAC (1876) saw its interim net profit drop by 8 percent year-on-year to US$575 million (HK$4.5 billion) and will distribute no dividends.

In the first half of 2023, total sales increased by 9.4 percent to 49.5 million hectoliters of beer due to the continued recovery of its business in mainland China and strong growth in India.

The ongoing premium process and the reopening of the Chinese market contributed to this growth, which was partly offset by the bad performance in South Korea.

On business in the mainland, Budweiser APAC chief executive Jan Craps expects a 20-35 percent increase in sales of super premium products in the second half, driven by the premium trend and the gradual recovery of sales.

It also aims to expand business to 220 cities in mainland China, including third and fourth-tier cities.

The cost of sales per hectoliter of beer rose by 3.7 percent year-on-year due higher commodity prices.

Meanwhile, the operating profit of Nissin Foods (1475) slumped 25.4 percent to 1.39 billion yen (HK$54.6 million) in the second quarter of the year amid declining consumer confidence in China.

And Harbour Centre Development (0051) narrowed its first-half net loss by 91.2 percent to HK$12 million from the previous year, with no interim dividend declared.