CR Beer eyes more acquisitions after profit surges 13.8 per cent
Following SABMiller deal, China’s top beer seller counts on organic expansion and more acquisitions
China Resources Beer, which owns the top selling beer brand in China, has its sights set on more acquisition opportunities after posting a 13.8 per cent surge in net profit last year to HK$831 million.
“We are confident the market’s long-term prospects will be driven by multiple favourable factors,” Chairman Chen Lang said in the results announcement statement. “The beer business will continue to strengthen through both organic expansion and acquisitions.”
Earlier this month, CR Beer announced plans to acquire British SABMiller’s 49 per cent stake in China Resources Snow Breweries, China’s biggest brewing company.
The US$1.6 billion deal, expected to go through by the end of this year, was completed at a much lower price than expected.
“It’s a friendly price,” said Vincent Tse Tan-hon, CR Beer’s director of investor relations, referring to its long standing joint venture agreement with SABMiller since 1994.
CR Snow accounted for 23.2 per cent of the beer market in China in 2014, while Tsingtao Brewery was second at 18.4 per cent, according to data from Euromonitor, an international market research company.
The market’s long-term prospects will be driven by multiple favourable factors
