Chinese infant-formula maker Yashili International Holdings has warned that its profits for the first six months of 2011 could be up to 40% lower than a year earlier.
Yashili, which floated on the Hong Kong stock exchange last November, said yesterday (24 July) that its half-year profits will be down 30-40% on the first six months of 2010.
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The company pointed to an increase in raw-material and advertising costs. It also cited a higher tax rate as a factor in the expected fall in profits.
Yashili, however, said its first-half revenue was expected to be up on the same time last year.
The group plans to issue its first-half results next month.
