Tingyis net profits dropped by 9.7% in the nine-month period

Tingyi's net profits dropped by 9.7% in the nine-month period

Tingyi (Cayman Islands) Holdings Corp has recorded a drop in profits in the first nine months of 2011 as a result of higher raw material costs and poor weather hitting its beverages division.

For the period to the end of September, net profits dropped by 9.7% to US$359.6m, the Chinese instant noodle and soft drinks producer reported last week. Sales in the period, however, amounted to US$6.3bn, a 19% increase on the prior-year period.

Total profit from the instant noodle division hit US$210.8m, while the bakery division drew in US$4.9m.

The firm said that unexpected weather conditions and the price increase of raw materials affected profits. In the third quarter, net profits slid by 34.8% to US$130.6m, while operating profits dropped by 21.3% to US$299.4m. Sales, however, edged up by 6.7% to $2.20bn.