Want Want Holdings has reported a second quarter growth in profit before tax as group turnover increased by over a quarter.
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In a statement to the Singapore Stock Exchange, the snack and beverage maker said that group turnover for the period jumped 25.2% on the same period last year. The increase in sales from US$182.7m to US$228.7m was mainly contributed by improvements in sales of beverages and other snacks, the company said.
Group profit before tax, benefiting from the change in sales mix and higher sales volume, rose from US$25.6m to US$33.1m.
The company said that sales in its core region of China increased 26.9% year-on-year. Stronger sales in core brand rice crackers, lower raw material cost for beverages and higher overall sales volume led to gross profit margin expansion and resulted in 30.3% growth in profit before tax.
For Taiwan, sales dropped 9.5% and lowered profit before tax.
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By GlobalDataOther regions’ sales improvement of 29.6% came mainly from countries such as Korea, US, Holland and profit before tax rose 27.4%.
In the statement, the company said: “The rapid growth of China’s economy has brought about domestic inflationary pressure. Hence market prices of raw materials are expected to trend upwards. The group will continue to contain cost pressures via sales volume increase and proactive cost management. Market conditions and cost factors will also be monitored to enable us to make reasonable adjustment to our product pricing.
“With regards to China market’s characteristics and competition, the group will continue to effect organisational changes to better serve our end consumers and distribution network, as well as implement strict controls on expenses so as to improve our profitability.”
