Wuliangye posts higher-than-expected profits
Updated: 2013-08-15 17:28
Net profit of Wuliangye Group, a leading white-spirit producer, rose by 14.76 percent in the first half, far exceeding observers' expectations, according to a company statement on Wednesday.
Industry analysts had forecast growth of 5 to 10 percent amid a shrinking market for expensive white-spirit brands.
Net profit attributed to the group's listed company stood at 5.79 billion yuan ($946.7 million), up 14.76 percent from last year's 5.04 billion yuan.
The group achieved 15.52 billion yuan in operational income, up by 3.12 percent from last year. Earnings per share stood at 1.53 yuan, up by 14.82 percent year-on-year.
The growth has been attributed to the company's promotion of middle- and low-end products while maintaining the sales volume of high-end brands, Peng Zhifu, spokesman for Wuliangye Group, told Securities Daily.
"We strengthened the sales team for middle- and low-end products before we introduced new high-end brands," Peng said. "We have also improved our services, which received positive feedback from the market."
Wuliangye launched a new strategy last week to integrate its national resources through merger and acquisition. It will focus on northern markets to optimize the sales network and improve coordination of its distribution centers in the region.