CHINA/US: SkyPeople Fruit Juice profits climb in H1
- First-half profits increase by 6% to US$6.8m
- Operating profits slide by 11% to $9.6m
- Sales edge up by 2% to $31.6m
- Second-quarter profits plummet by 69% to $1.5m
SkyPeople Fruit Juice expanded distribution and launched the Qian Mei Duo juice range in the quarter
SkyPeople Fruit Juice has reported an increase in first-half net sales and profits, despite heavy declines in the second quarter.
For the six months to the end of June, net profits climbed by 6% to US$6.8m. Operating profits, however, slid by 11% to $9.6m.
Sales in the period edged up by 2% to $31.6m. driven by fruit juice beverage sales, said the US-listed, China-based soft drinks producer yesterday (15 August). The company expanded distribution and launched the Qian Mei Duo juice range during the period.
However, for the second quarter, net profits plummeted by 69% to $1.5m, while operating profits dived by 52% to $2.4m. Sales in the period slid by 9% to $12.2m due to a drop in sales volumes and unit prices.
Higher costs and lower concentrate sales ate into the company's profitability in the quarter. For the half-year, SkyPeople was able to report a rise in net profits due to a low comparative figure in 2010, when the firm was hit with a $2.1m write-down charge.
Excluding this charge, net profits would have fallen by 20% in the first half of 2011. Group CEO Yongke Xue said: "We remain committed to capitalising on the growth potential for our branded beverages and the continued growth of our concentrate business in China and international markets."
Click here to view the earnings release.
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