News

CAYMAN ISLANDS: Tingyi Q1 profits fall as beverage unit absorbs PepsiCo deal

Most popular

The just-drinks Analyst returns

The just-drinks Analyst returns

Hard coffee founder details Diageo lessons

What effect does alcohol have on obesity?

How will Diageo change Cuban rum?

MORE
  • Beverage unit's Q1 net profits drop to US$21.5m from $208m
  • Net sales sales jump by 79% to $817.5m
  • Total group profits fall by 47%
  •  

Tingyi Holding Corp's beverage division has posted a sharp fall in first quarter profits and sales due to costs from its link-up with PepsiCo.

//i2.aroq.com/1/tingyi.png

Net profits fell to US$21.5m from $208m in the three months to the end of March, the Cayman Islands-based company said today (20 May). Net sales increased by 79% to $817.5m over the same period. The company said that, without the costs incurred when Tingyi joined with PepsiCo, net profits were up by 12.4%.

However, Tingyi said the jump in sales was down to the deal confirmed in March last year, which saw Tingyi's beverage subsidiary became PepsiCo's franchise bottler in China. 

Tingyi's overall group profits fell by 47% because of the declines in its beverage unit, however sales increased by 37%. 

The company said China's overall beverage sales volumes increased by 7.7% in the quarter, signifying an “upward recovery trend” for the sector.

For its PepsiCo business, it said a move to produce smaller bottle sizes had led to overall growth.

Tingyi's share price on the Hong Kong exchange fell by 2% today.

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


Sectors: Company results, Soft drinks

Companies: PepsiCo

Related Content

PepsiCo pledges soda spend as North America Beverages sales suffer Q1 dip - results

PepsiCo pledges soda spend as North America Beverages sales suffer Q1 dip - results...

US consumers lose faith in Coca-Cola Co, PepsiCo - satisfaction survey

US consumers lose faith in Coca-Cola Co, PepsiCo - satisfaction survey...

Lucozade Energy slide sinks Suntory Beverage & Food Q1 2018 in Europe - results

Lucozade Energy slide sinks Suntory Beverage & Food Q1 2018 in Europe - results...

PepsiCo's Q1 2017 results - Preview

PepsiCo's Q1 2017 results - Preview...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?