Glazed fruit and berry supplier China Nutrifruit Group has booked a decline in third-quarter profits, hurt by increases in raw material prices and labour costs.
For the three months to the end of December, net income slumped 82% to US$1.1m. Operating earnings in the period amounted to $2.1m, a 75% decline on the prior-year period.
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The company said commodity price increases and labour costs during its production season weighed on results. However, sales also dropped in the quarter, by 2.4% to $21.6m.
China Nutrifruit blamed the decline in sales on the suspended production of its concentrate pulp products, which was partly offset by increase in sales volume and average selling prices of glazed fruit and nectar products.
Nonetheless, China Nutrifruit’s CEO, Yu Changjun, said: “We experienced strong demand for our glazed fruit and nectar products which increased 78.4% and 25.6%, respectively, year-over-year, partly offsetting loss of sales from our concentrate pulp products.”
However, he added: “Due to the continued pressure from rising production costs, we have not yet resumed cooperation with our factories for the production of concentrate pulp products.”
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