Moutai continues to grow
By Andy Young
Chinese alcohol brand is continuing its strong growth after the company reported a 25 per cent jump in its net profit for the first quarter.
It continues the pattern of growth for the baijiu producer, which recently overtook Johnnie Walker as the most valuable liquor brand.
Moutai reported that its net profit for the first quarter increased by 25.2 per cent on the same period last year, eclipsing the predicted growth of 15.9 per cent. The company reported net profits of 6.1 billion yuan, with sales revenues for the period reaching 13.3 billion yuan, up 33.24 per cent on the previous year.
Moutai produced 60,000 metric tonnes of its baijiu in 2016 and its sales revenue for the full year was 38.8 billion yuan, with net profits of 16.7 billion yuan.
The company was initially hit during the anti-corruption crackdown imposed by China’s President Xi Jinping. However, the Financial Times reports that Moutai’s Party Secretary and General Manager Li Baofang, said demand for baijiu is returning and that Moutai was now producing baijiu year-round to maintain price stability amid surging demand.