Liquor sales hit by slow economy, austerity drive
First-quarter revenues and profits for China’s leading liquor producers were hard hit by the country’s slowing economy and austerity and anti-corruption campaigns.
Baijiu maker Shui Jing Fang Group saw a loss of 85 million yuan ($13.7 million) in the first three months of 2014 and is forecast to report a net loss this year.
Wuliangye Group, another top baijiu brand, said net profits were down by 27.8 percent to 2.61 billion yuan and revenue of 6.71 billion yuan, down 22.5 percent.
Jiugui Liquor Co Ltd recorded revenue of 81.3 million yuan, down 58.94 percent, and net profits declined 83.92 percent to 1.62 million yuan. Kweichow Moutai Co Ltd, the flagship brand in the industry, saw slight growth at 2.96 percent in terms of net profits, but it still was its lowest growth in net profits in the first quarter since going public in 2001. (Photo 5)