Kweichow Moutai’s revenues grew by 12% compared with the same period last year, and net income rose by 6.6% – far less than two of its closest competitors.
On the face of it that may seem steady progress. The sales increase was marginally above what the company itself had predicted but some analysts had forecast a 25% jump in sales.
In 2020 Moutai’s sales jumped by a quarter despite China being in lockdown during the first three months of the year. And this year it also reduced sales via wholesalers in favour of boosting direct routes to consumers, which should increase margins.
By comparison, however, net profit for Wuliangye, Moutai’s biggest domestic rival, rose 21% on a 20% increase in sales between January and the end of March.
Shanxi Xinhuacun Fen Wine, another Moutai competitor in the baijiu business, did even better. It reported a 78% surge in net profit on a 77% increase in sales.
The poor comparisons sent Moutai’s shares down a further 3% and they are now almost 25% below the peak they achieved in February, cutting the group’s value by about £60 billion.
That partly reflects an investment trend. China is now reckoned to be out of the slump caused by the coronavirus pandemic, with investors looking towards manufacturing and industrial companies for growth rather than consumer staples such as alcohol.
编辑：Frida Xu
