Chinese food manufacturer Tingyi saw net profit rise 36% during the third quarter to reach US$200.49m driven by strong sales of its instant noodles and beverages.
Sales for the quarter ended 30 September increased 34.45% to $2.1bn.
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Tingyi saw sales of its instant noodles rise by 25.18% to $743.2m, representing some 35% of the group’s turnover. It attributed the growth to sales of its key products – bowl noodles, and high-end packet noodles.
It said that it managed to offset many of the increased raw material costs with “efficient production management”, although gross margin in its noodle division decreased 1.01 percentage points to 31.58%.
The company said that rising raw materials prices increased costs “significantly”, resulting in “squeezed margins” with gross profit margin falling 5.17 percentage points to 30.64%, while gross profit grew 15.04% compared to the same period last year.
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By GlobalData
