E-Malt.com News article: 1497

Harbin Brewery Group Ltd, the Chana’s fourth largest brewer, has reported a 14% fall of its net profit down to HK$45.76m (US$5.86m) in the first six months of the current fiscal year, versus HK$53.22m in the first half of last year. Operating profit fell 13% to HK$93.1 million from HK$107.5 million. Harbin, said the decline is due to the impact of the SARS epidemic, which squeezed business in bars and restaurants. "With stringent cost-control measures and effective management practices, the group is set to recapture its market share and a higher profit margin in the second half of this year, so as to make up for the undesirable outcomes caused by SARS," said CEO, Peter Lo.

However in the first six months sales rose by 20% to HK$658.1m but Harbin said the percentage of sales represented by premium brands declined. The company's premium beer sales to restaurants and bars fell by 20% in May and June, the company said.

Earlier in the year, Harbin agreed to sell a 30% stake to the international beer group, SABMiller.


29 August, 2003