The company reported about 30% growth in net profit in first quarter of the year to RMB 11.59 billion (US$1.72 billion), the first time the company has broken the RMB 10 billion mark for profit, the Chinese baijiu company has announced.

Its company revenue also grew by 20% to RMB 20.9 billion (US$3.11 billion), passing the RMB 20 billion mark for the first time.

This marks a remarkable rebound for the baijiu distiller, which suffered sharp falls in October last year when its share dropped to RMB 550 (US$81.8) per share on the Shanghai stock exchange, dampening consumer market confidence amid China’s slowing economy.

For years, Moutai’s performance has served as a bellwether for consumer confidence. The rebound in Q1 might give some confidence back to distributors and retailers in the alcohol industry across China especially in these challenging times.

In 2018, the company recorded sales revenue of RMB 75 billion, and its profit reached RMB 34 billion, up by 25%.

For 2019, the company has set a revenue target of RMB 100 billion and RMB 45 billion in profits.

Moutai rocketed to fame due to its close affinity with Chinese Communist revolutionaries. It’s frequently drunk at state banquets and most famously was enjoyed at a state dinner with American president Richard Nixon during his first visit to China in 1972.

The liquor is a popular drink within China, and Moutai is the most sought-after brand among consumers and collectors.

A bottle of ‘Lay Mau’ produced in 1935 fetched a record of RMB 10.7 million (US$1.6 million) in 2011, making it the most expensive single bottle of Moutai ever sold in China.

Read More at source: The Drinks Business

Image Source: The Drinks Business