* Says beer sales volume rose 0.3 pct in 2016
* Average selling price up 2.3 pct
* Aims to grow organically and through acquisitions
(Add earnings details, company comments)
HONG KONG, March 21 China Resources Beer
(Holdings) Co Ltd reported its first annual profit in
three years on Tuesday as it focused on its flagship Snow brand
and expanded sales in various Chinese cities, and said it would
grow through acquisitions.
"Looking ahead, the overall market capacity may fluctuate
due to the various lingering uncertainties in the macro economy
and ongoing intense competition," Chairman Chen Lang said in a
"The business will continue to be developed through both
organic growth and evaluation of suitable potential acquisition
opportunities, which will play out more synergy effects brought
about by mergers and acquisitions," Chen said.
The owner of Chinese beer brand Snow on Tuesday posted
profit of 629 million yuan ($91.1 million), compared with a
restated 4.1 billion yuan loss in 2015 including losses in other
businesses, which it sold to its parent in September 2015.
Revenue increased 2.6 percent to 28.69 billion yuan.
Beer sales volume increased 0.3 percent to 11.72 million
kilolitres amid unfavourable weather conditions, a sluggish
economic environment and high competition. Average selling
prices increased 2.3 percent.
China Resources Beer in October said it wholly owned China
Resources Snow Breweries after buying the 49 percent stake it
did not already own from SABMiller PLC for $1.6 billion
"It is expected that the benefit of the acquisition of 49
percent stake will be fully reflected in 2017," Chen said.
Analysts see further upside potential on the stock if the
Chinese brewer co-operates or co-invests with international
brands to speed up product-mix upgrades.
Shares of China Resources Beer eased 0.5 percent after the
results, lagging a 0.3 percent gain in the benchmark index
($1 = 6.9060 Chinese yuan)
(Reporting by Donny Kwok; Editing by Subhranshu Sahu)