KWEICHOW Moutai Co., China’s top seller of fiery liquor baijiu, Friday posted its weakest quarterly profit growth in three quarters due to the government’s crackdown on luxury spending.

    The result suggests China’s premium alcohol makers may be suffering a sustained hangover from the government’s two-year-old drive against corruption and luxury gift-giving that has also hit sales at global spirits firms.

    Boozy official banquets and flashy gifts account for about half of high-end baijiu sales, according to analysts, but such ostentatious displays of wealth have fallen out of favor as President Xi Jinping tries to fight against corruption.

    Moutai, China’s largest baijiu seller by revenues, posted profit of 3.7 billion yuan (US$593.2 million) for the three months ended March, up 3 percent from 3.6 billion yuan in the same period last year. This lagged estimates of 4.1 billion yuan.

    The 3 percent rise is Moutai’s weakest profit growth since the second quarter of last year, when its net profit fell.

    Quarterly revenues hit 7.4 billion yuan, up 4 percent from 7.2 billion yuan in 2013. This also missed estimates of 7.9 billion yuan.

    Moutai narrowly avoided its weakest ever annual growth in 2013 and expects 2014 to be an “even more difficult year” for the baijiu market, according to its latest annual earnings statement. (SD-Agencies)