Chinese grocer Lianhua Supermarket Holdings has booked a drop in profits for 2012 as lower sales and higher costs hit its bottom line.

The company said operating profit in the 12 months to the end of December fell 38.24% to CNY512m (US$82.3m). Net profit dropped from CNY713.7m in 2011 to CNY452.1m in 2012.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

The group said costs in the period saw a “rigid up-trend”. However, the company was also hit by a decrease in like-for-like sales, which fell 0.7% as Chinese consumers reined in spending in response to the slowing economy. The drop was led by a 2.8% drop in hypermarket sales.

Overall, revenues increased by 5.3% to CNY28.99bn in the period as the company opened 394 new outlets.

Just Food Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Food Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving food industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now