Beingmate Baby & Child Food Co., the Chinese infant formula producer, has booked a nine-month loss of CNY215.9m (US$34.2m), with sales down by more than 23%.
In the first nine months of 2014, the company, in which Fonterra owns an 18% stake, generated net profit of CNY134.5m.
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Beingmate saw sales hit CNY2.64trn in the nine months to 30 September this year, a fall of 23.2% on the corresponding period a year earlier.
It also booked impairment losses on assets of CNY17.4m, although its financial expenses were down more than CNY19m.
Earlier this week, Beingmate announced it is entering into a joint venture with South Korea's Maeil Dairies.
The venture – Hangzhou Beingmate Maeil Food Co. will manufacture pre-packaged food, infant formula, infant food supplements, dairy products and maternal milk. It will also carry out research and development.
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By GlobalDataBeingmate also said its board had approved the establishment of a venture to buy Fonterra's Darnum production facility in Australia. Beingmate will own 51% of the venture, with Fonterra holding the rest of the shares and running the plant.
