CHINA: SkyPeople Fruit Juice sees Q1 profits, sales slide
- First-quarter net profits fall 87% to US$0.5m
- Net sales in three months to end of March slip 37% to $11.8m
- Operating profits down 71% to $1.6m
SkyPeople Fruit Juice has flagged a limited availability of raw materials after seeing a sharp drop in first-quarter profits.
The China-based fruit juice concentrate and beverage producer said yesterday (15 May) that net profits in the three months to the end of March sank by 87% to US$0.5m. Sales in the period slipped by 37% to $11.8m.
The figures were described as “disappointing” by SkyPeople's CEO, Hongke Xue. “Although we were able to generate positive cash flow in the quarter, the constrained availability of raw materials that we require for processing and production hampered the quarter's financial results,” he added.
Operating profits also slid in the three months by 71% to $1.6m.
However, the company pointed to new projects to develop orange products in Hubei Province and kiwi products in Mei County.
Xue added: “Given the relatively low domestic consumption rate of fruit juice beverages (in China), we believe that our branded fruit juice, distributed in over 20,000 retail stores, are well positioned to capitalise upon this market opportunity.”
To read the company's full statement, click here.
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