China Resource Enterprise sees robust profit on drinking sales

China Resource Enterprise Ltd (CR Enterprise)<291> said its net profit enjoyed a better-than-anticipated growth of 79% year-on-year in 2007, mainly buoyed by surged drinking sales.

The government-run supermarket operator and brewer reported in a statement to the Hong Kong Stock Exchange that net income advanced to HK$4.96 billion (US$637 million), or HK$2.07 a share in 2007, versus RMB 2.78 billion, or RMB 1.16 per share a year earlier.

Net profit from Snow-branded beer sales soared to HK$240 million, up 57.2% year-on-year, while turnover jumped 40.7% to hit HK$12.3 billion, with sales volume of Snow Beer up 68.6% to 5.12 million kiloliters, accounting for 73.8% of the total sales.

Sales of pure water climbed to HK$959 million, with a net profit almost doubled to HK$64 million. The company ascribed the robust growth to the takeover of C'est Bon Food & Beverage (Shenzhen) Co Ltd, a joint venture between CR Enterprise and SABMiller, the world's second-largest brewer group.