Kweichow Moutai's net profit in Q1 increased by 11.56% year-on-year, revenue increased by 10.54%, and high-end liquor demand was stable | Financial report news

Source: Wall Street News

In the first quarter, Kweichow Moutai achieved operating revenue of 50.6 billion yuan, a year-on-year increase of 10.54%, with net profit reaching 26.847 billion yuan, up 11.56% year-on-year. The demand for the company's premium baijiu remains stable, and its series liquor strategy has shown significant results.

Moutai's development target for 2025 is to achieve a year-on-year growth of around 9% in total operating revenue. By comparison, the company's performance growth in Q1 2025 slightly exceeded this target.

On the 29th, Kweichow Moutai released its Q1 financial report:

• Revenue reached 50.6 billion yuan, up 10.54% YoY

• Net profit attributable to shareholders: 26.847 billion yuan, up 11.56% YoY

• Gross margin remained high, with a weighted average ROE of 10.92%

• Basic earnings per share (EPS) stood at 21.38 yuan, up 11.59% YoY

Demand for Premium Baijiu Remains Stable, Series Liquor Strategy Yields Results

From a revenue breakdown perspective, Moutai's income mainly comes from two segments: Moutai-branded liquor contributed 43.557 billion yuan, while series liquor generated 7.022 billion yuan. While maintaining its leading position in the core product market, the series liquor segment is also contributing substantial revenue, reflecting the success of the company's diversified product strategy.

Notably, direct sales channels generated 23.22 billion yuan in revenue, while wholesale channels contributed 27.36 billion yuan. In particular, the "i Moutai" digital marketing platform achieved tax-excluded revenue of 5.87 billion yuan this quarter, demonstrating the positive results of Moutai's digital transformation.

The financial report disclosed that, as of the end of the reporting period, the company had 2,174 domestic distributors, a net increase of 31 from the beginning of the period, and 109 overseas distributors, an increase of 5. It is worth noting that all newly added domestic distributors during the reporting period were series liquor distributors, reflecting the company's intensified efforts to promote its series liquor products and expand into the mid-range market through a channel penetration strategy.

Strong Capital Returns, Steady Enhancement of Shareholder Value

By the end of Q1 2025, Moutai's basic EPS reached 21.38 yuan, up 11.59% YoY, while its weighted average ROE was 10.92%, an increase of 0.35 percentage points YoY. The company's total assets amounted to 312.369 billion yuan, up 4.49% from the end of the previous year, and shareholders' equity reached 258.358 billion yuan, up 10.83% from the end of the previous year.

Meanwhile, Moutai continues to advance its share repurchase plan. According to the announcement, the company will use its own funds to repurchase shares via centralized bidding for cancellation and capital reduction, with a repurchase price not exceeding 1,771.90 yuan per share and a total repurchase amount of 3-6 billion yuan. By the end of Q1, the company had repurchased a cumulative 1.0827 million shares, accounting for 0.086% of the total shares, with a total payment of 1.599 billion yuan. This move is expected to further enhance EPS and increase shareholder returns.

Looking ahead, the company is likely to continue its diversified product strategy, expand its series liquor market share, and accelerate digital transformation to enhance the commercial value of emerging channels like "i Moutai."

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