China Resources Beer (0291.HK) Q4 2024 Earnings Report

China Resources Beer Holdings Company Limited reported QQ4 2024 revenue of HKD 16.50 billion, up 119% year-on-year, reflecting a strong top-line rebound on a challenging prior-year comparison and potential volume/mix benefits. Gross profit rose to HKD 5.91 billion with a gross margin of 35.8%, yet the quarter delivered an operating loss of HKD 651.3 million and an EBITDA of HKD 583.8 million, signaling persistent profitability pressures from promotional activity, input costs, or brand mix shifts despite revenue strength. Net income for the quarter was HKD 37.7 million (EPS HKD 0.0116), delivering a modest bottom-line improvement QoQ but a material YoY decline on a true GAAP basis due to the prior-year base and cost structure.

Operating cash flow was HKD 487.3 million, while free cash flow remained negative at HKD -231.97 million, as capex totalled HKD 719.3 million and dividends paid amounted to HKD -1.789 billion in the period. The company ended QQ4 2024 with a robust cash balance of HKD 3.82 billion and a net cash position (net debt negative) of HKD -1.52 billion, underscoring a solid liquidity cushion to fund ongoing capex, working-capital needs, and potential reinvestment opportunities. Total assets stood at HKD 69.31 billion with liabilities of HKD 33.72 billion and shareholders’ equity of HKD 31.69 billion, while liquidity metrics showed a current ratio of 0.60, a quick ratio of 0.23, and a cash ratio of 0.15, implying tighter near-term working-capital management despite ample liquidity from cash reserves.

Looking ahead, management commentary (not captured in the transcript data provided) will be critical to understand planned actions to restore margin strength, including potential price/mix optimization, cost controls, and portfolio shifts toward higher-margin brands. The near-term outlook will hinge on China’s consumer environment, promotional intensity, raw-material costs, and realization of any efficiency gains from ongoing capacity expansion and distribution optimization. Investors should monitor ongoing capex pace, working-capital dynamics, dividend policy sustainability, and the trajectory of EBIT and margin recovery as the company leverages its cash-rich balance sheet.