Moutai's First Quarter Results Released, Profit Growth Notably Slows Down

Kweichow Moutai's disclosed financial report for the first quarter of 2026 shows that the company achieved a revenue of 53.909 billion yuan, a year-on-year increase of 6.54%; the net profit attributable to mother company was 27.243 billion yuan, a year-on-year increase of 1.47%. While the revenue maintained mid-single-digit growth, the profit growth rate has noticeably slowed down, reflecting that the increase in expenses such as costs and taxes in the current quarter has squeezed profitability.

Cash flow is the most significant "highlight" of this quarter's financial report: the net cash flow from operating activities was 26.910 billion yuan, a year-on-year increase of 205.48%. The company explained that it is mainly related to the "reduction of the net increase in non-negotiable interbank deposits" of its controlling subsidiary, Kweichow Moutai Group Finance Co., Ltd. Coupled with the recovery of funds on the investment side, the net increase in cash and cash equivalents in the first quarter was 51.543 billion yuan.

From the perspective of business structure, Moutai liquor remains the absolute mainstay. From the beginning of the year to the end of the reporting period, the total main business revenue was about 53.886 billion yuan, of which Moutai liquor achieved 46.005 billion yuan, and series of wines achieved 7.881 billion yuan. In terms of channels, direct sales were 29.504 billion yuan, and wholesale and agency were 24.382 billion yuan, with direct sales accounting for more than half; the company disclosed that the "iMoutai" digital marketing platform achieved non-tax revenue from liquor of 21.553 billion yuan.

In terms of capital operations, Moutai's share repurchase continues to advance: As of the date of approval of the report, the company has repurchased a total of 962,400 shares, accounting for 0.0769% of the total share capital, and has paid an amount of 1.351 billion yuan, with the transaction price ranging from 1,322.60 to 1,499.74 yuan per share.

Performance Overview: Revenue Stabilizes and Increases, but Profit Elasticity Weakens

The total operating revenue for the first quarter was 54.703 billion yuan (including 53.909 billion yuan in revenue and 794 million yuan in interest income); the profit was 37.543 billion yuan, a year-on-year increase of 1.38%; the net profit attributable to the mother company was 27.243 billion yuan, a year-on-year increase of 1.47%.

In terms of profitability indicators, the basic earnings per share were 21.76 yuan, a year-on-year increase of 1.78%; the weighted average return on equity was 10.57%, a decrease of 0.35 percentage points from the same period last year. The overall trend shows "increase in revenue, small increase in profit, and a decline in ROE".

Non-recurring gains and losses had a minimal impact on the current period: the profit after deducting non-recurring gains and losses attributable to the mother company was 27.240 billion yuan, with a difference of only about 2.53 million yuan from the net profit attributable to the mother company.

Profit and Loss Statement Breakdown: Rising Costs and Taxes, Narrower Net Interest Income

From the perspective of cost and expense, the total operating cost was 17.192 billion yuan, a year-on-year increase of 19.12%, significantly faster than the revenue growth rate. Among them, several key items showed more noticeable changes:

• Operating costs were 5.521 billion yuan, a significant year-on-year increase of about 36%, corresponding to a gross margin that slid from about 92.0% in the same period last year to about 89.8%.

• Taxes and surcharges were 8.227 billion yuan, a year-on-year increase of 14.82%, creating a noticeable "tax burden squeeze" on profits.

• Financial expenses were -116 million yuan (still a net gain), but the "net gain