Tsingtao Beer, the pride of Qingdao, the nectar of choice for many in the Dao, and for (as Frank Zappa said), “all the rest of whom for which to when-so-never of partially indeterminate biochemical degradation seek ‘the path’ to the sudsy yellow nozzle of their foaming nocturnal parametric-digital wheat inter-faith geo-thermal terpsichorean ejectamenta”, has been selling slower than usual for the first time since 1999. Whoa.
Net profits are up, but just not as up as previously, and below earlier estimates. A cold winter and rising costs were stated as reasons for the slow down. On the bright side, Tsing Pi’s HK stock is up 5% this year on the Hang Seng. QD folk, it’s time to pitch in, drink up, ganbei, and help the hometown hopsters get back to earlier levels of growth.
More info from Reuters:
(Reuters) – Tsingtao Brewery Co Ltd , China’s second-biggest brewer by volume, on Wednesday said its 2012 net profit rose 1.2 percent in its slowest growth since 1999, as higher production costs offset a rise in beer sales.
Tsingtao, in which Japan’s Asahi Breweries Ltd holds a stake of about 19 percent, said net profit rose to a record 1.76 billion yuan in the year ended December, up from 1.74 billion yuan profit in 2011.
The result lagged an estimate of 1.8 billion yuan, according to Thomson Reuters I/B/E/S.
Revenues increased 11.3 percent to 25.78 billion yuan from 23.16 billion yuan in 2011.
A slowdown in China’s economy and cold and wet weather had hit the beer industry production, while rising raw material and labour costs further squeezed margins, analysts said.
The Chinese brewer posted fourth-quarter profit of 80 million yuan in the three months ended December, compared with 73.8 million yuan profit in the year earlier period, Tsingtao said. That lags a forecast of 120 million yuan.
Sales growth was hampered by rising costs of labour, packaging and raw materials including barley, analysts said.
Tsingtao’s Hong Kong-listed shares have risen 5 percent so far this year, outpacing a 0.8 percent fall in the benchmark Hang Seng Index.