Kweichow Moutai's Annual Profit, Revenue Fall for First Time -- Update
600519.SS
Published on 04/17/2026 at 05:26 am EDT
By Sherry Qin and Jiahui Huang
Chinese liquor giant Kweichow Moutai reported a drop in annual profit and revenue for the first time since its 2001 listing amid subdued consumption in China, though the company is betting that a market-oriented reform will help it regain its popularity and boost sales.
Once China's most popular liquor brand, Moutai's appeal has been waning as consumers become more cautious with their spending amid a cooling economy. And while baijiu--a liquor made from fermented grains--has long been integral to Chinese culture and is prized as a luxury gift, especially among older businessmen, the fiery spirit isn't as popular with the younger generation.
China's austerity rules targeting lavish spending by civil servants, following measures that banned alcohol and tobacco at official functions, have dealt a heavy blow to demand for premium baijiu as well.
Kweichow Moutai late Thursday said net profit last year fell 4.5% to 82.32 billion yuan, equivalent to $12.07 billion, with revenue declining 1.2% to 168.84 billion yuan. The results were well below market expectations for growth and fell short of the baijiu maker's own guidance.
The company didn't provide an earnings outlook for 2026.
"We view 2025 as a reset year for Moutai's operating model, with on-year decline in top line and elevated marketing investment in the fourth quarter," Citi analysts said in a note.
Shares in Kweichow Moutai, which at one time was the most valuable company in mainland China, have steadily declined over the past few years. It now sits as the fifth-largest company in China by market capitalization, according to data from Wind Information, behind two state banks, battery giant CATL and oil refiner Sinopec.
On Friday, its Shanghai-listed stock slid as much as 4.3% before ending 3.8% lower, notching its worst one-day performance in a year.
Results from other baijiu companies, including Wuliangye Yibin and Luzhou Laojiao, point to similar pressures. Wuliangye's revenue for the first nine months of 2025 dropped 10% from a year earlier, while Luzhou Laojiao's revenue fell 4.8% in the same period.
Kweichow Moutai has taken steps to navigate the more challenging market environment. In early 2026, it unveiled a market-oriented operating plan to restructure its product portfolio, broaden its sales channels and implement a dynamic pricing mechanism for its direct retail system.
The move has already borne some fruit. Moutai saw better-than-expected demand ahead of the Lunar New Year, and its e-commerce platform registered 6.28 million new users after it accelerated the rollout of its flagship Feitian Moutai product on the app.
More recently, Moutai has raised the ex-factory wholesale price for its flagship Feitian Moutai by 100 yuan a bottle, while the retail price was increased by 40 yuan a bottle.
Analysts largely viewed the price hike as a positive surprise that may lift earnings, as the company could keep 60 yuan in profit per bottle rather than giving it to distributors.
Not all of them were convinced that the baijiu maker is staging a comeback. According to CGS, the latest price hike was the smallest on record, reflecting the still-tepid recovery in baijiu demand. Daiwa analysts said a sustainable demand recovery for Moutai still hinges on China's property-market recovery and wealth effects.
Moutai's core baijiu brand contributed the bulk of its revenue last year, generating 146.50 billion yuan. Revenue from its subbrands fell 9.8% to 22.27 billion yuan.
The company produced around 116,123 tons of Moutai base liquor in 2025, up 11% from 2024.
Write to Sherry Qin at [email protected] and Jiahui Huang at [email protected]
(END) Dow Jones Newswires
04-17-26 0525ET