Luzhou Laojiao Reports Nearly 20% Year-over-Year Decline in Net Profit for 2025

Luzhou Laojiao Delivers 2025 Report Card: Revenue and Net Profit Both Decline

According to 36Kr, Luzhou Laojiao recently released a summary of its 2025 annual report. The report shows that the company achieved full-year operating revenue of 25.731 billion yuan, a year-over-year decrease of 17.52%, while net profit attributable to shareholders of the listed company came in at 10.831 billion yuan, down 19.61% year-over-year. The results have drawn widespread market attention.

Performance Under Pressure: Both Revenue and Profit Retreat

Looking at core financial data, Luzhou Laojiao faced notable operational pressure in 2025. Revenue declined by more than 5.4 billion yuan year-over-year, while net profit shrank by approximately 2.6 billion yuan. Notably, the decline in net profit exceeded the drop in revenue, suggesting the company also faced challenges in cost control and expenditure management.

As one of the "Big Four" in the baijiu industry, Luzhou Laojiao's performance fluctuations to some extent reflect the broader operating trends of the premium baijiu market. Under the dual impact of shifting consumer sentiment and industry inventory adjustments, even leading liquor companies have found it difficult to remain unscathed.

Industry Context: Baijiu's Deep Adjustment Period Continues

Luzhou Laojiao's performance decline is far from an isolated case. Since 2025, the baijiu industry as a whole has entered a deep adjustment cycle, with multiple listed liquor companies facing varying degrees of growth slowdown or outright performance declines. Key contributing factors include:

• Increasingly rational consumer demand: Business banquet and gift-giving consumption scenarios have contracted, putting pressure on end-market sell-through
• Slow channel inventory digestion: Distributor inventories remain elevated, and restocking willingness has declined
• Pricing systems under strain: Market transaction prices for some products have softened, squeezing corporate profits

At the same time, digital transformation and intelligent upgrades within the industry are accelerating. Many liquor companies have begun exploring the use of AI technology for precision marketing, supply chain optimization, and consumer insight analysis, seeking new growth drivers during the adjustment period.

Outlook: Short-Term Pressure but Long-Term Value Remains

Despite underwhelming short-term performance, Luzhou Laojiao, as a leading liquor company with core flagship products such as "Guojiao 1573," retains solid brand moats and channel foundations. Analysts point out that the industry adjustment period also represents an important window for companies to optimize product portfolios and improve operational efficiency.

Going forward, whether Luzhou Laojiao can reverse its performance downturn through deepening digital and intelligent transformation, optimizing channel strategies, and strengthening brand momentum will be a key focus for the market. In the industry's process of "squeezing out the bubble," companies with genuine brand strength and management capabilities are expected to emerge from the adjustment cycle first.