China: China Resources Beer’s 2023 net income up 19% but misses analysts estimates

China Resources Beer (Holdings) reported revenue of CN¥38.9b for its financial year 2023, up 10% from FY 2022). However, the figure still missed analysts’ estimates by 1.8%, Simply Wall Street reported.

Net income was CN¥5.15b (up 19% from FY 2022), whereas profit margin totalled 13% (in line with FY 2022) and earnings per share (EPS) was CN¥1.59 (up from CN¥1.34 in FY 2022). EPS exceeded analyst estimates by 1.7%.

The primary driver behind last 12 months revenue was the Eastern Region segment contributing a total revenue of CN¥18.5b (48% of total revenue).

Notably, cost of sales worth CN¥22.8b amounted to 59% of total revenue thereby underscoring the impact on earnings, the company said.

The largest operating expense was Sales & Marketing costs, amounting to CN¥8.07b (71% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥335.0m.

Looking ahead, revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Beverage industry in Hong Kong.

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