Dukang Distillers posts 78.7% rise in full-year net profit on higher sales

A jump in liquor sales and prices helped Singapore-listed Chinese liquor producer Dukang Distillers record a 78.7 per cent surge in full-year net profit to 389.7 million yuan (S$81.6 million).

This was underpinned by a 31.7 per cent rise in revenue to 2.4 billion yuan in the 12 months to June 30, Dukang said on Wednesday.

The company sold 33,910 tonnes of its Luoyang Dukang liquor in the latest financial year, a 124.7 per cent jump over a year ago. Its average selling price also improved 9 per cent in the year, it added.

The group's gross profit margin also rose, to 40.9 per cent from 37.5 per cent a year ago, due to increased sales of products under its Dukang brand, which commands higher margins.

Its strong results notwithstanding, Dukang was cautious about the outlook for the Chinese liquor, or baijiu, market.

"Despite the stellar growth recorded by the group during this fiscal year, we observed that the China baijiu industry has entered a period of adjustment," said Dukang chairman Zhou Tao.

"Tthe curb on Chinese government public spending will inevitably restrict the development of high-end baijiu segment. Nonetheless, we will proactively attempt to address or circumvent these challenges in order to sustain our growth."