China Resources Beer (Holdings) Full Year 2023 Earnings: EPS Beats Expectations, Revenues Lag

China Resources Beer (Holdings) (HKG:291) Full Year 2023 Results

Key Financial Results

• Revenue: CN¥38.9b (up 10% from FY 2022).
• Net income: CN¥5.15b (up 19% from FY 2022).
• Profit margin: 13% (in line with FY 2022).
• EPS: CN¥1.59 (up from CN¥1.34 in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

China Resources Beer (Holdings) EPS Beats Expectations, Revenues Fall Short

Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) exceeded analyst estimates by 1.7%.

The primary driver behind last 12 months revenue was the Eastern Region segment contributing a total revenue of CN¥18.5b (48% of total revenue). Notably, cost of sales worth CN¥22.8b amounted to 59% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to CN¥8.07b (71% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of CN¥335.0m. Explore how 291's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Beverage industry in Hong Kong.

Performance of the Hong Kong Beverage industry.

The company's shares are up 13% from a week ago.

Balance Sheet Analysis

While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on China Resources Beer (Holdings)'s balance sheet.

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