Chagee Holdings Ltd reported higher first-quarter revenue as rapid growth in overseas markets and an expanding store network helped offset weakness in domestic sales momentum.
The beverage chain operator said its revenue rose 4.7 percent to 3.55 billion yuan ($525 million) in the three months ended March 31, compared with 3.39 billion yuan a year earlier. Operating income fell 33.3 percent to 547.2 million yuan from 820.8 million yuan in the same period last year.
Chagee continues to expand its footprint, with 7,531 teahouses across China and overseas markets including 7,157 in China and 374 overseas as of March 31, up 12.7 percent from a year earlier. The growth reflects the company's push to strengthen its presence both domestically and internationally amid intensifying competition in the beverage sector.
Apart from its presence in Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam and the United States, the company entered the South Korean market in April.
"Our overseas teahouse network maintained a steady growth pace with operating performance in line with our expectations," said Yin Dengfeng, chief operating officer and director of Chagee.
