Fuzhou Fuzhen's Jan-May Revenue Up 22% YoY; Q2 Summer Beverage Season Looks Promising

Fuzhou Fuzhen Holdings announced on June 8 that its May consolidated revenue reached NT$791 million, a month-on-month increase of 4.11% and a year-on-year increase of 11.77%. Cumulative revenue for the first five months of the year totaled NT$4.278 billion, up 22.11% year-on-year. Both the monthly and cumulative figures set new records for the corresponding periods.

The company attributed the growth to rising temperatures and the onset of summer, which boosted market demand for beer, herbal tea, and carbonated beverages. Brand customers have been increasing their inventory buildup in anticipation of the peak summer consumption season, and various beverage promotional activities have driven strong end-market sales. This has led to sustained momentum in shipments of two-piece aluminum cans.

At its Hsinchu plant, the company has recently secured new product orders from a Japanese coffee brand, launching a 180ml mini-can to cater to the growing Asian consumer demand for small, lightweight, and portion-controlled beverages. Additionally, a major carbonated beverage customer has introduced limited-edition packaging to capitalize on the FIFA World Cup, and these orders have entered mass production and shipment stages.

Furthermore, the group's beer brand customers have launched seasonal new products with promotional campaigns to capture summer market demand, effectively driving end-sales growth and further boosting overall shipment performance.

Fuzhou Fuzhen holds a cautiously optimistic outlook for its second-quarter performance. With the arrival of the summer beverage consumption peak season, customer restocking demand is expected to continue, and the benefits of new product launches are gradually materializing. Current order momentum is strengthening, and June revenue is expected to potentially exceed last year's level. The company targets double-digit growth for its Q2 consolidated revenue.

In addition, the company's Fujian plant has begun shipping luncheon meat cans and soup cans developed in collaboration with customers in the second quarter. With stable growth in ready-to-eat food demand and increasing market penetration, the contribution from these products is expected to rise significantly from the third quarter onward.

Fuzhou Fuzhen noted that the growing consumer demand for convenience foods is expanding the ready-to-eat food market, which in turn boosts shipments of two-piece steel cans. Meanwhile, China's continued policies to promote service consumption are expected to further invigorate the consumer market, providing medium-to-long-term support for beverage and food packaging material demand.