Tingyi (Cayman Islands) Holdings Corp has recorded a drop in profits in the first nine months of 2011 as a result of higher raw material costs and poor weather hitting its beverages division.
For the period to the end of September, net profits dropped by 9.7% to US$359.6m, the Chinese instant noodle and soft drinks producer reported last week. Sales in the period, however, amounted to US$6.3bn, a 19% increase on the prior-year period.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Total profit from the instant noodle division hit US$210.8m, while the bakery division drew in US$4.9m.
The firm said that unexpected weather conditions and the price increase of raw materials affected profits. In the third quarter, net profits slid by 34.8% to US$130.6m, while operating profits dropped by 21.3% to US$299.4m. Sales, however, edged up by 6.7% to $2.20bn.
