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Liquor company expects first net loss in decade

By LYU CHANG (chinadaily.com.cn) Updated: 2014-01-21 17:25

Chinese liquor producer Sichuan Swellfun Co Ltd announced on Monday that it expects a net loss of 124-160 million yuan ($20.5-$26.4 million) for 2013 amid falling high-end liquor sales, its first negative profit in a decade.

The Sichuan-based company, controlled by Diageo Highland Holding BV with nearly 40 percent of its shares, reported a net profit of 34.6 million yuan for the first three quarters of 2013, as sales plummeted nearly 90 percent year-on-year.

DHHBV is the world's largest spirit manufacturer in Britain.

The company said the sharp decline was mainly caused by the significant slide in sales income in the white-liquor industry, higher promotional spending and returned inventory.

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