China's Tingyi says revenue falls due to weak demand for instant noodles
Food and beverage giant Tingyi posted a 16.6 per cent decline to US$2.3 billion in its first-quarter revenue due to a sharp decline in demand for instant noodles, it said in a filing with the Hong Kong stock exchange on Tuesday.
The maker of popular instant noodle Master Kang said revenues from instant noodles dropped by 13 per cent year on year to US$1 billion in the first three months to March, while beverage sales posted a 19 per cent decline to US$1.26 billion for the same period.
Most four categories in the beverage unit posted a decline, with the carbonated drinks business being the only exception, rising 14.2 per cent during that period.
Meanwhile, the group EBITDA declined by 9.5 per cent to US$330 million, and profit attribute to owners of the firm dropped 16.6 per cent to US$107 million.
Its gross margin rose from 1.28 per cent to 31.66 per cent.