Chinese noodle maker Tingyi Holding Corp yesterday (21 April) posted a jump in full year sales and profits, as demand for its products held up despite the deterioration of the operating environment.
Revenue increased to US$4.2bn, up from $3.2bn the previous year. The company said that sales gains were driven by the strength of the company’s key brand, Master Kong.
Net profit totaled $362m, of which $260.4m was attributable to equity holders of the company.
Despite posting strong results for fiscal 2008, Tingyi’s outlook remained sober and the company warned that economic conditions are likely to worsen over the next 12 months.
“2009 will be a year in which challenges outnumber opportunities and survival outweighs development,” the group said in a statement to the Hong Kong stock exchange.
Nevertheless, Tingyi predicted: “According to the estimation of relevant authorities of the state, Chinas GDP will continue to grow at 8% in 2009 and the fast moving consumer goods industry is unlikely to enter into recession.”
The company said that despite poor trading conditions there are still “ample” opportunities in China’s food sector.
“In view of the growing pressure of deflation on consumers’ consumption structure and the continuous development of rural markets and in light of the current macroeconomic environment, the group will manage its product mix in a timely and suitable manor to facilitate the comprehensive development of its high-end, medium-end and low-end products.”
In the coming year, Tingyi indicated that it will also focus on its “better access, broader reach” strategy in order to expand its market share.