China Resources Beer (Holdings) Co (STU:CHK) Operating Income : €792 Mil (TTM As of Dec. 2023)

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What is China Resources Beer (Holdings) Co Operating Income?

China Resources Beer (Holdings) Co's Operating Income for the six months ended in Dec. 2023 was €11 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was €792 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. China Resources Beer (Holdings) Co's Operating Income for the six months ended in Dec. 2023 was €11 Mil. China Resources Beer (Holdings) Co's Revenue for the six months ended in Dec. 2023 was €1,934 Mil. Therefore, China Resources Beer (Holdings) Co's Operating Margin % for the quarter that ended in Dec. 2023 was 0.59%.

Good Sign:

China Resources Beer (Holdings) Co Ltd operating margin is expanding. Margin expansion is usually a good sign.

China Resources Beer (Holdings) Co's 5-Year average Growth Rate for Operating Margin % was 41.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. China Resources Beer (Holdings) Co's annualized ROC % for the quarter that ended in Dec. 2023 was 0.20%. China Resources Beer (Holdings) Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 8.86%.

China Resources Beer (Holdings) Co Operating Income Historical Data

The historical data trend for China Resources Beer (Holdings) Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

China Resources Beer (Holdings) Co Operating Income Chart

China Resources Beer (Holdings) Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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237.65

349.58

547.45

609.19

789.70

China Resources Beer (Holdings) Co Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Operating Income	Get a 7-Day Free Trial															-11.39	682.60	-44.95	781.05	11.43

China Resources Beer (Holdings) Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the semi-annually data reported by the company within the most recent 12 months, which was €792 Mil.

China Resources Beer (Holdings) Co (STU:CHK) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

China Resources Beer (Holdings) Co's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	22.86 * ( 1 - 32.1% )	/	( (7101.199	+	8606.459)	/ 2 )
=	15.52194	/	7853.829
=	0.20 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9926.239	-	3189.012	-	( 1666.746	-	max(0, 3414.561	-	3050.589	+	1666.746	))
=	7101.199

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	9185.668	-	1506.843	-	( 708.921	-	max(0, 3129.014	-	2201.38	+	708.921	))
=	8606.459

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

China Resources Beer (Holdings) Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	218.07	/	( ( (2395.722 + max(-1805.169, 0))	+	(2526.56 + max(-1616.649, 0)) )	/	2 )
=	218.07	/	( ( 2395.722	+	2526.56 )	/	2 )
=	218.07	/	2461.141
=	8.86 %

where Working Capital is:

	Working Capital		(Q: Jun. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(130.948	+	1172.084	+	80.811)	-	(3189.012	+	0	+	0)
=	-1805.169

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(15.925	+	1220.321	+	145.765)	-	(1506.843	+	0	+	1491.817)
=	-1616.649

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

China Resources Beer (Holdings) Co's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	11.43	/	1934.251
	=	0.59 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

China Resources Beer (Holdings) Co Operating Income Related Terms

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China Resources Beer (Holdings) Co (STU:CHK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » China Resources Beer (Holdings) Co Ltd (STU:CHK) » Definitions » Operating Income

Traded in Other Exchanges

CRHKY:USA 00291:Hong Kong CHK:Germany

Address

No. 26 Harbour Road, Room 2301 and 2310, 23rd Floor, China Resources Building, Wanchai, Hong Kong, HKG

Website

https://www.crbeer.com.hk

China Resources Beer, or CR Beer, was originally a conglomerate enterprise with operations across retail, beer, food and beverage sectors. In September 2015, the company disposed of all its non-beer businesses and became a pure beer producer. Through a series of mergers and acquisitions, the company retains its leadership position in China's beer industry. Amid the premiumization trend in the domestic beer market, CR beer acquired Heineken China in 2019, which allows CR Beer access to a premium international brand and also leverages its sophisticated distribution network to grow Heineken's sales and market share. CR Beer is now China's largest brewer, with a volume share of about 24%, versus 18% of Tsingtao and 16% of Budweiser APAC, based on Euromonitor data.