Kweichow Moutai's Annual Profit, Revenue Fall for First Time

By Jiahui Huang

Chinese liquor giant Kweichow Moutai reported a drop in annual profit and revenue for the first time ever, hurt by subdued consumption in China and as the company prioritized price stability over growth.

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.

The company late Thursday said full-year net profit 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 company's own guidance.

Kweichow Moutai didn't provide an earnings outlook for 2026.

Shares in the baijiu maker have steadily declined over the past few years. On Friday, the Shanghai-listed stock slumped 4.0% to 1,405.05 yuan in afternoon trading, on track for its worst one-day performance in a year.

"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.

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.

This year, the 8.6% increase in Moutai's ex-factory wholesale average selling price, along with roughly 60 yuan in profit per bottle the company is keeping for itself rather than giving to distributors, will likely help stabilize earnings, Citi said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

April 17, 2026 02:11 ET (06:11 GMT)