CHINA: Tingyi H1 profits leap on lower costs
- H1 net profits for beverages up 125% to US$197m
- Net beverage sales increase 2.5% to $3.3bn
- Operating profits (EBIT) for beverages grow 84% to $274m
- Group sales up 1.5%
Tingyi warned of a slow down in China
Tingyi has boosted profits in its beverage unit as raw material costs fell, but the China-based group also warned of a slowdown in its domestic market.
Net profits for beverages were up 125% to US$197m in the six months to the end of June, Tingyi said yesterday. Net beverage sales climbed 2.5% to $3.3bn in the same period while operating profits (EBIT) for beverages increased 84% to $274m.
Sales growth was below the overall China beverage market, which increased by 3.4%. The group said there was a “downturn” in the domestic economy in Q2, caused by weak consumer spending and unfavourable weather but that its margins improved because of lower costs on sugar and PET resin.
Looking ahead to Q3, Tingyi said it aims to capture beverage sales during the peak buying season.
The company, which also sells instant noodles and snacks, said overall group profits were up 38% to $337m, while sales climbed by 1.5% to $5.5bn.
Tingyi's share price in Hong Kong fell this morning but rallied in the afternoon to end level.
To read the company's full results, click here.
Fruit and Vegetable Juice Market in China to 2018 - Market Size, Trends, and Forecasts
This industry report offers the most up-to-date market data on the actual market situation, trends and future outlook for fruit and vegetable juice in China. The research includes historic market data...read more
Synopsis Canadean's "PepsiCo, Inc. : Consumer Packaged Goods - Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contai...
Project Synopsis: MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth act......
According to the form 10-K filed in February 2014, PepsiCo seeks to “continue to broaden the range of our product portfolio, including expanding our offerings of more nutritious products ... by reduci...
Cía de Bebidas Pepsico continued to struggle to maintain its volume sales in the current economic scenario. In 2013 the company focused on two fronts in order to reverse the downwards trend in consump...
- Comment - The Appeal and Perils of Craft
- Review of the Year 2014 - Part IV: Spirits
- Time is Right for Refresco Gerber Exit
- Sustainability in Wine - Part I
- just the Ten - Top News Stories of 2014
- Belvédère to sell assets, streamline portfolio
- Belvedere vodka tie-up over new James Bond film
- Diageo ups focus on China with Mortlach roll-out
- Brown-Forman eyeing Scotch, Irish whisk(e)y entry?
- Diageo rolls out Beckham's Haig Club to US
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- Global Tequila Market 2014-2018
- Global market review of non-Scotch whiskies – forecasts to 2018