The net profit of food and beverage major Tingyi fell 14.11 per cent to US$159.65 million in the third quarter while turnover dropped 12.86 per cent to US$2.95 billion. The company blamed the poor performance on China’s slowing economy and the ongoing crackdown on corruption.
“In the third quarter, the GDP of China increased by 7.3 per cent year on year, a record low growth in 22 quarters. Coupled with economic downturn in prior periods, the impact of the credit crunch on consumption, the constant crackdown…and anti-bribery policies, consumption continued to see a slowdown in growth. Meanwhile, beverage sales were hit by the abnormal weather and cool summer,” said the Hong Kong-listed firm.
In the third quarter, the turnover of Tingyi’s beverage business fell 19.95 per cent year on year to US$1.73 billion, accounting for 58.53 per cent of the total turnover.
According to AC Nielsen, the overall sales volume of instant noodles on the mainland during the third quarter fell 9.1 per cent and sales value fell 4.4 per cent year on year.
“The instant noodle business was affected by the underperformance of the overall industry. However, our turnover was slightly better than the market,” said Tingyi.
The turnover of Tingyi’s instant noodle business dropped 1.81 per cent to US$1.13 billion in the third quarter, accounting for 38.32 per cent of the company’s turnover.
