Kweichow Moutai: A 2020 Money-Maker with CNY 130 Mn Earned per Day

Consumer Staples Author: 石伟 Mar 31, 2021 02:20 PM (GMT+8)

In 2020, the gross profit margin posted 93.99%.

Moutai

Kweichow Moutai, a maker of popular traditional Chinese alcoholic drinks, released its 2020 annual report on March 30 of 2021. During the year, the operating revenue posted CNY 94.92 billion with an increase of 11.1% year on year. Among the figures, Moutai liquor's sales increased by 11.91% to CNY 84.83 billion yuan, and other series of liquor increased by 4.70%. The net profit was up 13.33% year on year, recorded at CNY 46.70 billion.

However, the epidemic situation in 2020 did have a certain impact on the sales volume. In 2020, the domestic and foreign sales volume of Moutai hit 62529.32 tons and 1526.56 tons respectively, which were slightly lower than the same period of the previous year. In this case, the rise of Moutai's revenue was contributed by the increasing price. 

When compared with other top players in the industry, Moutai won in many ways. The operating financials of Maotai exceeded the sum of Wuliangye, Luzhou Laojiao and Yanghe, which posted revenue of CNY 57.2 billion, CNY 16.65 billion and CNY 21.15 billion, as well as the net income figures of CNY 19.90 billion, CNY 6.01 billion and CNY 7.48 billion, respectively. 

What is more, Moutai sent a dividend of CNY 24.24 billion, accounting for 51.90% of the net profit in 2020, which was the same level as 2019.

However, the decline of the growth rate has become a common preoccupation for Moutai and its investors. It saw its revenue grow by 16% in 2019, 11.1% in 2020, and has set a target of 10.5% in 2021.