China’s Changyu reports revenue growth in Q3

China’s biggest domestic winery and a major importer, Changyu Pioneer, is seeing a slight uptick in revenue in Q3, while its net profits still suffered moderate decrease due to increasing operational costs, the company has announced in its latest financial report.

The Shandong-based company generated RMB 3.798 billion in revenue in Q3, which represents a year-on-year increase of 0.91%. Its net profits stood at RMB 816 million, a year-on-year decrease of 1.04%.

The drop is a more moderate decline compared with the 4.62% reduction in profits the company saw in 2016, as it pivoted from a domestic wine-only offering towards developing a global network of wine brands.

In recent years, the company has purchased a few overseas wineries in Spain, France and most recently in Chile, selling wines back to domestic market. Following previous acquisitions of two wineries in France and one in Spain, earlier this year, Changyu signed a deal with Chile’s Bethia group to acquire an 85% stake in its wine division, Bethwines, for US$50 million.

In the meantime, Changyu is also accelerating its exports to Europe with its Cabernet Sauvignon from Chateau Moser XV that has recently been added to Tesco in the UK, and its Cabernet Gernischt reds as well sweet wines carried by Berry Bros & Rudd.