Making 204 million yuan per day! Guizhou Maotai exceeded its 2023 target, with total revenue surpassing 100 billion, setting a record for dividends | Financial Report Insights

Guizhou Maotai announced on Tuesday its 2023 annual report, showing that last year's total revenue exceeded 100 billion yuan for the first time in history, surpassing analysts' expectations and exceeding the 15% growth target. The cumulative annual dividend also reached a historical high.

Exceeding Growth Target, Making 2.04 Billion Yuan Daily

Guizhou Maotai's revenue and profit in 2023 both exceeded the 15% growth target. According to the financial report, Guizhou Maotai's total revenue in 2023 was 150.6 billion yuan, higher than analysts' expected 149.26 billion yuan. The year-on-year growth of 18% also hit a nearly 5-year high for Guizhou Maotai since 2019, doubling the total operating income compared to 2018.

At the same time, Maotai liquor sales revenue reached 126.6 billion yuan, a year-on-year increase of 17.39%, higher than analysts' expected 124.19 billion yuan; other series of liquor revenue reached 20.6 billion yuan, a year-on-year increase of 29.43%, higher than analysts' expected 18.14 billion yuan. Last year, Maotai liquor production was 57,204 tons, while analysts estimated 59,518 tons.

Guizhou Maotai's net profit in 2023 was 74.734 billion yuan, higher than analysts' expected 73.94 billion yuan, with a year-on-year growth of 19.16%, equivalent to the company earning 2.04 billion yuan net profit per day last year.

The year-end dividend per share was 30.876 yuan, lower than analysts' estimated 33.29 yuan, but higher than the 25.911 yuan in the same period last year. The earnings per share in 2023 were 59.49 yuan, higher than analysts' estimated 58.85 yuan, and higher than the 49.93 yuan in 2022.

The company stated that key economic indicators maintained double-digit growth, achieving high-quality completion of annual strategic goals. Guizhou Maotai liquor's unique position as the only billion-level single product in the world continues to be consolidated. Maotai 1935 created an "industry miracle," becoming a billion-level single product in revenue within two years of listing. Maotai Prince liquor's single product revenue exceeded 4 billion yuan, while Hanjiang, Guizhou Daqu, and Lai Miao single product revenues each exceeded 1 billion yuan, forming a billion, hundred million, and ten million level single product structure, with a comprehensive product matrix.

i Maotai Continues to Strengthen

According to the report, i Maotai's sales revenue in 2023 reached 22.374 billion yuan, compared to 11.883 billion yuan in 2022, with a growth rate of 88.29%, significantly expanding market advantages and contributing additional growth to the company's profitability In terms of revenue, i Maotai's income has surpassed the sauce-flavor liquor series. More notably, i Maotai has attracted a large number of young consumers, with a user base exceeding 65 million, and the recent daily active users reaching 7 million, highlighting Maotai's strong influence in the Chinese consumer market.

Currently, i Maotai is continuously expanding its layout around end customers, closely cooperating with major stores to achieve the dual goals of increasing brand awareness and customer traffic.

The industry generally believes that i Maotai has provided strong support for Guizhou Maotai in attracting young consumer groups, opening up new channels, and expanding into new markets. It has not only brought a large amount of traffic to Maotai products but also, together with direct stores, group purchases, e-commerce platforms, supermarkets, and social distributors, promoted the diversification of sales channels, enhanced the channel's risk defense capabilities, and value creation capabilities.

Abundant Cash Flow, Record-breaking Dividends

Thanks to exceeding revenue and profit growth targets, Guizhou Maotai's operating cash flow reached 66.593 billion yuan last year, a staggering increase of 81.46% year-on-year, providing a foundation for its generous dividend strategy.

According to the annual financial report, Guizhou Maotai achieved a basic earnings per share of 59.49 yuan in 2023, intending to distribute 308.76 yuan for every 10 shares. As of December 31, 2023, the total share capital of the company was 1,256.1978 million shares, resulting in a total planned cash dividend distribution of 38.786 billion yuan.

At the same time, Guizhou Maotai's total annual dividends reached 56.55 billion yuan, including 32.549 billion yuan in annual dividends and 24.001 billion yuan in special dividends, accounting for 75.67% of the net profit in 2023, an increase of approximately 1.8 billion yuan compared to last year, setting a new historical record.

Data also indicates that from its listing in 2001 to September 2023, Guizhou Maotai has accumulated a net profit of 423.788 billion yuan and distributed 232.654 billion yuan in cash dividends.

Growth Target for This Year Remains at 15%

In its annual report, Guizhou Maotai stated that its main goal for 2024 is to achieve a growth in total operating income of around 15% compared to the previous year, the same growth rate as last year, and to complete fixed asset investments of 6.179 billion yuan.

The company stated in the annual report:

The basic trend of China's economic recovery and long-term improvement has not changed and will not change. With increased macroeconomic control efforts, the continuous improvement of economic operations, the continued effectiveness of consumption promotion policies, the continuous expansion of consumption scenarios, the continuous growth of residents' income, and the steady and rapid growth of consumption will continue, which is conducive to liquor consumption In terms of the industry, since 2016, the national liquor industry has entered a period of "stock competition". Although facing many challenges, the favorable conditions outweigh the unfavorable factors, and the overall development trend of the industry is positive