Want Want profit rises 3.5pc as China Foods’ losses shrink 56pc

PUBLISHED : Tuesday, 26 August, 2014, 3:36pm
UPDATED : Tuesday, 26 August, 2014, 3:39pm

First-half net profit at Want Want China rose 3.5 per cent from the same period a year earlier to US$318.5 million.

The mainland’s top maker of snacks posted an increase of 5.6 per cent in revenue to US$1.85 billion.

Want Want said it will launch new products in the second half of the year and will continue to upgrade distribution channels and increase on-shelf visibility of products through accelerated coverage and diversified display.

The firm’s three key product segments – rice crackers, dairy products and beverages, and snack foods – respectively accounted for 16.4 per cent, 53.3 per cent and 30.1 per cent of total revenue.

Meanwhile, China Foods, the edible-oil and beverage unit of the mainland’s largest food importer and exporter, said losses narrowed 56 per cent to HK$135 million in the first half from HK$304 million in the same period last year.

Revenue fell 1.1 per cent to HK$13.8 billion.

China Foods said prices of key raw materials “are showing an upward trend, and our costs in the second half 2014 are expected to be higher than in the first half of 2014”.

The company said gross profit margin will come under pressure in the second half.

It said that in this year’s second quarter, some competitors launched larger packages at competitive prices, which is likely to exert pressure on China Foods’ sales revenue.