Kweichow Moutai 2024 Q1 data interpretation - Stable performance, series liquor and direct sales temporarily bid farewell to rapid growth

Zero, Brief Review

In Q1 2024, Kweichow Moutai's performance remained as stable as ever, with both revenue and net profit exceeding the annual target of 15%;

At the same time, some trends different from the past have emerged: the series liquor and direct sales segments, which previously maintained rapid growth and continuously increased their proportion, have begun to slow down significantly. Correspondingly, the proportion of Moutai liquor and wholesale agency has started to rebound.

1) In Q1 2024, revenue was 45.776 billion yuan, a year-on-year increase of 18.11%, with the growth rate declining compared to Q4 2023 (20.26%);

In Q1 2024, net profit attributable to the parent company was 24.065 billion yuan, a year-on-year increase of 15.73%, with the growth rate significantly lower than Q4 2023 (19.33%);

The main reasons for the lower net profit growth rate are:

a) Sales expenses increased significantly by 384 million yuan, a year-on-year increase of 50.8%;

b) Taxes and surcharges increased significantly by 1.738 billion yuan, a year-on-year increase of 31.8%;

2) By product tier, the growth rate of series liquor in Q1 2024 fell to 18.39% (compared to 29.43% in the previous quarter), and its proportion dropped to 13.01%.

3) By sales channel, the growth rate of i Moutai in Q1 2024 also declined significantly to 8.96% (compared to 88.29% in the previous quarter), leading to a sharp drop in the growth rate of the direct sales segment to 8.49%, with its proportion falling from 45.67% to 42.33%;

The proportion of the wholesale agency segment increased accordingly. Judging from the financial reports of Huazhi Wine, distributors have had a tough time in recent years. It is speculated that liquor companies will provide appropriate support and policy preferences to distributors.

4) In Q1 2024, contract liabilities were 9.523 billion yuan, a year-on-year increase of 14.33%, with a slight rise in the reserve level, indicating stable performance.

5) There is not much to say about Q1 performance, as falling within the 15%~20% range is considered in line with expectations.

Series liquor temporarily bid farewell to rapid growth and returned to normal growth rates;

The growth rate of direct sales has declined more noticeably, likely related to liquor companies supporting wholesale distributors;

Whether this trend will continue requires further tracking and observation in subsequent reports.

I. Operating Performance

1. Operating Performance - Single Quarter