Tingyi Holdings saw earnings increase in the first half of 2014 although profits from its two key food divisions fell.
The company booked a 37.7% rise in net profit to US$337m, with EBIT growing 24.8% to $450m. A jump in the profitability from Tingyi’s drinks arm helped the company’s earnings.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
However, the Hong Kong-listed group said EBIT from its instant noodle arm, its second-largest by sales, slid 2.5% to $188.9m.
Tingyi’s instant food division, which sells products including biscuits, made an operating loss of $11.3m, up from $6.9m a year earlier.
The group’s instant noodle sales rose 2.1% to $2.03bn. Tingyi said it outperformed the sector. However, raw material prices weighed on the unit’s profits.
The company’s instant food sales fell 9.5% to $89.7m amid what it called “persistent depression” in China’s biscuit sector. Tingyi said the division’s loss was in “our expected range”. It added a focus for the unit would be on improved cakes and crackers sales.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataTingyi’s total turnover was up 1.5% to $5.5bn.
