Chinese food maker Tingyi Q2 profit surges as sales up

Uni-President China Holdings

21/08/2017 06:03

HONG KONG, Aug 21 (Reuters) - Chinese food and beverage 
maker Tingyi (Cayman Islands) Holding Corp  0322.HK  on Monday 
posted a more than three-fold jump in quarterly net profit 
thanks to solid noodle sales and as its beverage business 
benefited from warm weather.  
    Tingyi, owner of the Master Kong brand, said profit rose 246 
percent to 266.70 million yuan ($39.98 million) in the three 
months through June, slightly above the $38 million forecast by 
Reuters SmartEstimate. That compared to 77.04 million yuan in 
the same period a year earlier. 
    Revenue increased 4.7 percent to 14.37 billion yuan during 
the quarter. 
    Tinyi said it was optimistic about the prospects for the 
China market despite a slowing economy and rising material 
costs.  
    "We would introduce multi-price strategy to meet with the 
rise of middle class consumption trends, and to further optimise 
our product in order to maintain an effective revenue 
management," Chairman Wei Ing-Chou said in a filing to the Hong 
Kong stock exchange. 
    Tingyi said it would introduce different products to meet 
consumer demands and would optimise product mix to deal with 
rising materials costs. 
    The results followed a 15.3 percent rise in January to March 
profit in its best quarterly performance in nearly three years 
that was helped by healthy sales of its mainstay products. 
 urn:newsml:reuters.com:*:nL4N1IO1VM 
    For the first-half, Tingyi said profit rose 54.6 percent to 
700.2 million yuan, while revenue rose 4.2 percent to 28.42 
billion yuan. 
    Hong Kong-listed Tingyi is the Chinese partner of Starbucks 
Corp  SBUX.O  for ready-to-drink coffee and PepsiCo Inc  PEP.N  
for fruit juice. 
    Earlier this month, smaller rival Uni-President China 
Holdings Ltd  0220.HK  posted a 26.5 percent fall in first-half 
net profit amid fierce competition  urn:newsml:reuters.com:*:nFWN1KU0BD 
    Shares of Tingyi edged up 0.5 percent ahead of the results. 
($1 = 6.6704 Chinese yuan renminbi) 
 
 (Reporting by Donny Kwok; Editing by Michael Perry) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: TINGYI RESULTS/