According to estimates of revenue and production data, the average price of liquor and beer has increased significantly
Recently, the Liquor Industry Association released industry data.
Data show that in 2023, the country's liquor production fell 5.1% year on year, revenue was 756.3 billion yuan, up 9.7% year on year, and total profit was 232.8 billion yuan, up 7.5% year on year.
Beer production was 37.89 million kl, up 0.8% year on year, revenue was 186.3 billion yuan, up 8.6% year on year, and realized total profit of 26 billion yuan, up 15.1% year on year.
Wine production was 300,000 kl, up 3.4% year on year, revenue was 9.09 billion yuan, up 4.8% year on year, total profit was 220 million yuan, up 2.8% year on year.
Rice wine production increased 3.2% year on year, revenue increased 2.1% year on year, and total profit increased 8.5% year on year.
According to estimates of revenue and production data, the sharp increase in the average price of liquor and beer may be due to an upgrade in the mass consumer price band, which reduced the share of sales of low-end liquor and low-end beer. Pre-tax profit margins in the liquor and wine industries have declined slightly, while pre-tax profit margins for beer and rice wine have all risen.
The beer industry's revenue increased 8.6% year on year, higher than the revenue growth rate of Tsingtao Brewery, Budweiser Asia Pacific, and Chongqing Brewery, as well as the beer business growth rate of China Resources Brewery. The judgment may be due to industry statistics. Total profit increased 15.1% year-on-year, and the product structure upgrade led to a relatively rapid increase in profit margins. It is expected that in 2024, the structural upgrade will resonate with the decline in raw material prices, and profit margins will continue to rise rapidly.
Bank of China Securities released a research report saying that the product structure upgrade is driving a relatively rapid increase in beer profit margins. Watch for opportunities to upgrade popular alcohol prices.
Companies related to the alcohol concept:
Liquor: Jinshu Riwatari (06979)
Beer: Tsingtao Brewery Co., Ltd. (00168), Budweiser Asia Pacific (01876), China Resources Brewery (00291)