CHINA: Huiyuan Juice Group posts sales, profits leap as margins improve
- FY net profits up 1,313% to CNY228.5m (US$36.9m)
- Net sales up 13% to CNY4.5bn
- Operating profits (EBITDA) up 60% to CNY971.2m
China Huiyuan Juice Group has posted a strong jump in full-year sales and profits on the back of demand for higher-margin juices and nectars.
Net profits in calendar-2013 surged 1,313% to CNY228.5m (US$36.9m), the Beijing-based company said today (19 March). Net sales were up 13% to CNY4.5bn over the same period, while operating profits (EBITDA) climbed by 60% to CNY971.2m.
An increase in Huiyuan's average selling price boosted performance, with gross profit margin improving from 28% for 2012 to 31.0% last year. Huiyuan said the increase came from greater sales contributions from 100% juices and nectars and the launch of new products.
Huiyuan CEO Daniel Saw said: “(In 2013) the group successfully enhanced its core competency and brand capability. In addition, the group proactively improved its product mix and launched new products accommodating the shifting consumer trends, thereby achieving favourable sales performance and steady growth in results.”
During the year, Huiyuan sold two plants in Chengdu and Shanghai for an aggregate consideration of CNY650m. Looking ahead, the company said it will identify more opportunities to dispose of “assets with low efficiency”.
In May, Huiyuan announced it was buying a fruit and vegetable juice concentrate and puree maker from a major shareholder for HKD4.94bn (US$636m). Earlier in the year, it revealed plans to diversify into winemaking.
There was no change in Huiyuan's share price on the Hong Kong Stock Exchange today.
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