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.
Earlier this month, The Coca-Cola Co took aim at the in-home carbonation market, through its tie-up with Green Mountain Coffee Roasters. Richard Corbett surveys the battlefield....
- Pernod's mood darkens over India - Analysis
- Why Scotch must drop the 'malts good, blends bad'
- Does alcohol accelerate the onset of dementia?
- Have spirits companies forgotten the mainstream?
- Cognac is back - is Remy Cointreau ready?
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Scotch sales set to soar, despite recent struggles
- Pernod Ricard YTD fiscal-2017 sales performance
- Distell acquires majority stake in Cruz Vodka
- Cognac needs innovation at bottom end - Pernod
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Myanmar - ISA Country Report
- Flavoured Powder Drinks in 2017: Confronting an Ageing World