• Q1 beverage net profits up 288% to US$83.5m
  • Net beverage sales up 6% to $1.55bn
  • Group sales up 5%
Tingyi released its Q1 results today

Tingyi released its Q1 results today

Tingyi has posted a big jump in Q1 beverage profits as raw material costs fell and sales of RTD teas and bottled water increased.

Net profits for its beverage business climbed by 288% to US$83.5m in the three months to the end of March, the China-based firm said today (19 May). Net beverage sales were up 6% to $1.55bn over the same period.

Tea sales, which account for half of Tingyi's total beverage sales, rose by 26% in the quarter while bottled water's were up by 34%. Carbonated drinks & “others” saw sales fell by 22% to $308m.  

Tingyi said it increased its gross margin in the quarter by 3.7 percentage points as prices for “major raw materials” fell.

The sales increase lagged Tingyi's full-year performance, when sales climbed by 27%

In Tingyi's overall performance, including its noodles and snacks units, profits increased by 48% and sales by 5%.

Tingyi has been PepsiCo's partner in China since November 2012, when the company bought out the US firm's operations in the country in exchange for a 5% interest in its business unit.

Tingyi said today PepsiCo has maintained its lead in China's cola carbonated category. However, across the overall carbonated category, The Coca-Cola Co held a 50.5% market share in sales volume compared to Tingyi's 34.3%.

In February, Tingyi and PepsiCo signed a deal to be the primary beverage supplier of mainland China's first Disney resort when it opens in Shanghai next year.

Tingyi's share price stayed flat in trading today.

To read the company's full results, click here.