Chinese food group Zhongpin has booked a jump in second-quarter profits on the back of rising sales.
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The meat processor yesterday (10 August) reported a 25.9% rise in net income to US$10.7m, with revenues climbing 17.7% to $161.8m.
The rise in sales came despite a slump in Chinese pork consumption amid fears that the H1N1 virus could transmit to humans through eating pork.
Chairman and CEO Xianfu Zhu said: “The second quarter was unusual for us, primarily due to the temporary fear consumers had about getting the A(H1N1) flu from pork products, which the world’s health agencies have confirmed is not possible.”
Zhongpin said pork prices had risen again in June and July after falling in the earlier part of the second quarter as concern over H1N1 took hold.
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By GlobalDataZhu said Zhongpin would look to sustain the growth the business had seen over the last five years through boosting production capacity, building distribution and investing in marketing.
He said: “Over the next 12 months, we expect to continue to expand our distribution channel and develop new markets. Through our aggressive marketing campaign, we also expect to increase our brand awareness and customer loyalty.”
