Kweichow Moutai Raises Payout After Posting Profit Jump

By Jiahui Huang

Kweichow Moutai's first-half net profit rose more than expected, with the liquor giant increasing its payout ratio and joining the list of a few Chinese companies whose financial performance remains sound.

China's most valuable liquor brand said late Thursday that its first-half net profit came in at 41.70 billion yuan ($5.81 billion), up 16% from a year earlier.

Revenue rose 18% to CNY81.93 billion for the period despite subdued consumer sentiment in China.

The results were a positive surprise, Citi analysts Xiaopo Wei and Vincent Young wrote in a note, reflecting the company's efforts to keep selling prices stable by slowing direct retail sales and providing more support to distributors.

Kweichow's move to lift its regular dividend payout ratio to 75% from 52% is also a welcome surprise, Citi said. That could draw in more long-term investors amid market volatility, it added.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

August 08, 2024 21:18 ET (01:18 GMT)

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