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Tingyi blames weather as Q3 sales slide

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  • Nine-month net profits at Tingyi's beverage operations up 7.8% to US$279.7m 
  • YTD net sales for beverages slip 6.4% to $5.1bn
  • Nine-month operating profits (EBIT) rise 7.9% to $387.4m 
  • Q3 beverage sales slide 20% to $1.7bn, volumes down 3.5%

Tingyi has reported a slump in year-to-date beverage sales as poor weather affected its Q3, but profits were still up.

Tingyi felt the impact of poor weather for Q3

Tingyi felt the impact of poor weather for Q3

The China-based conglomerate, which is PepsiCo's partner in the country, saw net profits in its beverage division rise by 7.8% to US$279.7m in the nine months to the end of September. However, sales slipped in the period by 6.4% to $5.1bn after a 20% drop in Q3 sales to $1.7bn.

Beverage operating profits in the year-to-date increased by 7.9% to $387.4m. In its half-year, the company had seen a healthy jump in net profits off a slight rise in sales.

In its results, reported today, the company blamed “lower-than-expected consumption power” and “rainy days and a cool summer” for its Q3 performance. The company's juice products were worst affected, with Q3 sales down 39% to $248m. CSD sales fell 4% to $505m. 

Tingyi noted, however, that prices for raw materials, such as PET resin and sugar, continued to decline year-on-year. 

Looking ahead, the company said it expected a “relaxed monetary policy” in China and the re-heating of the property market will “invigorate (beverage) consumption”.

Total Q3 group sales fell 13% to 2.95bn, while net profits slid 14% to $160m. 

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


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