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Moutai to surpass Diageo?
China’s baijiu maker Kweichow Moutai’s market value closed at record high this Wednesday, surpassing 450 billion RMB (US$65.4 billion), bolstered by the company’s announcement of a projected 25.38% revenue growth in the first quarter of 2017 on the same day.
If the growth trend continues for the rest of the year, the Chinese liquor company could surpass the UK drinks giant Diageo and become the world’s most valuable liquor company. Diageo’s market capitalisation was reported at £53 billion (US$65 billion) in a Financial Times report published in January.
Moutai said its total sales revenue in the first quarter will reach 12.852 billion RMB (US$1.87 billion), which will be a year-on-year increase of 25.38%, while its net profit is expected to grow 15.92% to 5.668 billion RMB (US$824m) compared with the same period last year.
The increase is mainly a result of strong alcohol demand during Chinese New Year in January, an analyst quoted by Chinese financial news portal Wallstreet CN said. Eight tonnes worth of Moutai’s Year of the Rooster themed liquor was sold on the first day of its release, the report said.
The Chinese liquor company’s projected annual growth rate for 2017 is 22%.