Sunny times for maker of frozen orange juice
China's largest manufacturer of frozen concentrated orange juice yesterday announced a 120 per cent rise in annual net profit and voiced optimism for the near future, saying it anticipated demand to grow further in the domestic market.
Tianyi Fruit Holdings said revenue grew by 42.1 per cent annually to 479.33 million yuan (HK$552.4 million) in the financial year ended June 30. Net profit surged 120.3 per cent, from 71.07 million yuan to 156.55 million yuan in the same period.
The mainland fruit juice drink market has grown in keeping with the rising health consciousness of consumers. As salaries have gone up, consumers have been increasingly turning to beverages that are more nutritional and safer.
But going by per capita figures for consumption, it still has a long way to go. Average individual annual fruit juice consumption on the mainland is one-fortieth of what it is in western Europe.
Sin Ke, chairman of Tianyi Fruit, said: 'We believe there is ample room for growth in the Chinese market given the significantly low level of per capita consumption.'
Tianyi says the reason for its strong performance was an increase in sales after widening their product range and expanding production capacity.
The group has introduced frozen concentrated orange juice products with pulp, and premier oranges in the past 12 months.
Sales of the group's fresh oranges increased by 96.6 per cent, from 93.99 million yuan in the 2009 financial year to 184.79 million yuan this past financial year.