Snack food maker Want Want H1 profit grows marginally

Uni-President China Holdings

23/08/2016 06:50

HONG KONG, Aug 23 (Reuters) - Snack food and beverage maker 
Want Want China Holdings Ltd  0151.HK  posted a marginal rise in 
first-half profit amid intensified price competition due to 
destocking and a slowdown in economic growth in the mainland. 
    Want Want, competing with smaller rival Tingyi Holding Corp 
 0322.HK  and Uni-President China Holdings Ltd  0220.HK , said 
its January-June profit rose to 1.756 billion yuan ($264.3 
million) from 1.749 billion yuan the same period a year ago. 
    Unfavorable weather conditions also brought challenges to 
the group's sales of popsicles and beverages, it said. 
    Revenue fell 12.8 percent to 9.71 billion yuan from a year 
earlier. Gross profit margin rose 5.3 percentage points to 47.8 
percent, thanks to a drop in cost of key raw materials. 
    "In a weak economic environment, the management considers 
that the price reduction strategy or tentative promotion may not 
be able to foster benign development of the market in the medium 
to long term," Chairman Tsai Eng-meng said in a statement, 
adding the company would diversify its products. 
    Want Want shares rose 2.64 percent after the results, 
outpacing a 0.4 percent fall in benchmark index  .HSI . 
    Smaller rival Uni-President China  0220.HK  had earlier this 
month posted a 1.9 percent rise in noodle sales for the first 
half while beverages business slid 8.2 percent.  urn:newsml:reuters.com:*:nWNBS02TIV 
 ($1 = 6.6450 Chinese yuan renminbi) 
 
 (Reporting by Donny Kwok; Editing by Gopakumar Warrier) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: WANT WANT CHINA RESULTS/