Chinese meat processor Zhongpin saw its half-year net profits slump 36% despite posting a rise in revenues.
Net income attributable to Zhongpin shareholders for first six months of the year ending 30 June was US$23.2m, compared to $36.2m last year.
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The company said the decline was due to lower gross profit margin, employee costs to support its expansion, higher salaries, rising labour and utility costs as well as higher interest expenses and income taxes.
Income from operations declined 19.7% to $37.3m, while revenues increased 19.9% to $782.3m.
Zhongpin has reaffirmed its previous full-year guidance. Diluted earnings per share for the full-year are expected to range from $1.36 to $1.92 per share, while revenues are forecast to be between $1.55bn to $1.72bn.
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