CHINA: Tingyi H1 beverage sales rise, but one-off gain hampers profits
- H1 net profits (beverages) fall 67.4% to US$87.5m
- Net sales (beverages) up 29.7% to $3.25bn
- Pre-tax profits (beverages) drop 58% to $133.8m
Beverage sales were up in H1
Tingyi Holding Corp's beverage unit has reported a healthy rise in first-half sales but profits fell as it cycled a one-off gain from last year's tie-up with PepsiCo.
Last year, the company benefited in its first half from a tie-up with PepsiCo. The US group took a 5% stake in Tingyi while selling its bottling operations to the Chinese firm.
The healthy rise in sales was due to growth from RTD tea and sales from Pepsi's bottling business, which is now 60% of the group's turnover.
Volumes of Pepsi beverages saw “double-digit growth”, the company said.
Tingyi's H1 group net profits, whose business also includes instant noodles, fell by 31.4% to $196.7m, while sales were up by 19.6% to $5.4bn.
Looking ahead to the second-half, the company said overall operations will remain “challenging” due to the state of China's economy.
To read the company's full statement, click here.
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