CHINA: China Food H1 profits up
Sauce maker China Food Co. has booked higher half-year profits on the back of increased sales.
The UK-listed company reported pre-tax profits of GBP1.8m (US$2.9m) for the six months ended 30 June, a drop from GBP1.9m for the same period in 2010. However, the result included costs of GBP900,000 from the setting up of a new production facility. EBITDA increased 6.9% to GBP2.6m.
Net profit was GBP686,000, compared to GBP4m a year earlier, when the company benefited from the impact of currency translation. Taking out foreign exchange, profit was GBP1m, down from GBP1.1m.
Revenue climbed 9.6% to GBP18.8m as condiments sales increased 18.4%. Feed sales were up 7.1%.
China Food also said sales of main brand Hao Tai Tai soya sauce grew 23% and the company started exports to Singapore in July.
Chairman John McLean said: "During the period, the group continued to progress on its stated strategy to become a brand leader in northern China for condiments.
“With our increased world-class production facilities, we are now putting the distribution channels in place to take our new brand to market, as well as the ability to further develop our existing brands and products.
"The management team has been significantly strengthened and this process will continue to ensure that we have the right team in place to take the products forward and capitalise on the considerable market opportunity that is present in northern China."
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