Asian Citrus Holdings has posted a surge in profits for its full-year, on the back of acquiring fruit juice company, Beihai Perfuming Juice.
Net profit for the year to the end of June reached CNY1.11bn (US$173.3m), soaring 89.6%. Asian Citrus said the increase was mainly due to an increase in production volume of oranges, as a result of the company acquiring a 92.94% stake in Beihai Perfuming Juice. The deal was completed on 30 November last year.
Go deeper with GlobalData
The Chinese orange plantation owner reported EBITDA of CNY1.21bn, up 84.8% on the same period last year. Asian Citrus said it continued to expand its direct sales to 20 supermarket chains with total supply of around 68,480 tonnes of oranges, up 12% from 2009/2010 period. Revenues increased 73.9% to reach CNY1.41bn for the full-year.
Asian Citrus chairman Tony Tong said: “During the year, we made very good progress in increasing the volume of direct sales to supermarkets. The acquisition of Beihai BPG is an important step for the group in moving downstream and provides the group with better flexibility to meet the changing needs of the consumer market and to explore other opportunities in the agricultural sector.
Commenting on its outlook, the company said fruit juice consumption in China looks “positive” and the acquisition of Beihai BPG provides it with the “techniques, processing capacity and distribution network for effective expansion”.
“The addition of new production capacity will strengthen the group’s leading position in the juice concentrates market in China.”
