China Resources Beverage Reports 18.5% Revenue Decline Amid Decrease in Packaged Water Sales; Beverage Segment Grows 21.3%

Reuters
Sep 24
China Resources Beverage Reports 18.5% Revenue Decline Amid Decrease in Packaged Water Sales; Beverage Segment Grows 21.3%

During the reporting period, China Resources Beverage (Holdings) Co. Ltd. reported a significant decrease in revenue, totaling RMB6,205.6 million, down 18.5% from RMB7,616.0 million in the same period last year. This decline was primarily attributed to a reduction in packaged water sales. The company's other gains and losses improved, with a loss of RMB0.5 million, representing an 88.2% decrease from a loss of RMB4.1 million in the previous year, largely due to a reduced net loss from the disposal of property, plant, and equipment. The beverage products division recorded an increase in revenue, reaching RMB954.9 million, which is a 21.3% rise compared to the same period last year, accounting for 15.4% of the total revenue for the reporting period. The company introduced new product offerings, including a 450ml "Stewed Pear" flavor under its tea beverage line, expanding consumer choices. Administrative expenses slightly decreased by 0.3% to RMB144.4 million compared to the previous year. The Group's impairment losses under the expected credit loss model, net of reversal, decreased by 45.2%, from RMB1.1 million to RMB0.6 million, driven by enhanced credit risk management for trade receivables. The company's other income saw a substantial increase of 92.8%, reaching RMB217.3 million, mainly due to higher interest income and government subsidies. Overall, the Group's financial performance was influenced by changes in sales volume, product mix adjustments, and cost control measures. There is no specific guidance or outlook stated in the report.

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