Instant noodle maker Tingyi Holding Corp booked a drop in sales and earnings for 2014, as a slowdown in China's economy weighed on demand.
The Master Kong maker reported sales of US$10.24bn in the 12 months to end-December, down 6.43% from 2013. Chairman Wei Ing-Chou said that the company's top line was dampened by a shift in consumption patterns and “intense” competition.
He commented: “In 2014, the growth of economy in China as a whole slowed down. Competition in the market had been intense. Under the circumstances with changes in consumer behaviour and sales channels, the operation of the enterprise as a whole faced more challenges and difficulties.”
Profitability was also lower, Tingyi revealed. Profit attributable to shareholders fell to $400.4m, compared to $408.5m in the prior year. EBITDA was down 1% to $1.05bn.
During 2014, Tingyi said it embarked on a number of initiatives to position it for long-term growth. The company invested in R&D, branding and food safety as well as working to optimise operational efficiency.
Looking to 2015, the company noted: “In 2015, there is still pressure in the growth of economy in China. It is expected that in 2015, the target for growth in GDP is 7% and the overall development will be maintained in the new state of normal mode. However the new development in urbanization will bring growth. We are still confident in the potential of the long-term development in China and remain prudently optimistic to the prospects in 2015.”