Aquatic Foods Group, the China-based seafood processor, today (28 September) reported a drop in half-year profits on the back of lower sales and rising costs.
The company, which includes the import of fish from the UK into China among its businesses, booked net profit after tax of CNY38m (US$5.7m), down 51.6% on a year earlier.
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A rise in costs, including of raw materials, dampened profits. Exchange rates had a further impact on Aquatic Foods Group’s costs.
Revenue fell 5.6% to CNY419m, with Aquatic Foods Group pointing to the easing in the growth of the Chinese economy.
Li Xianzhi, the company’s chief executive, said the business had “performed credibly in what remains a challenging economic environment”.
Li added: “The directors expect the current challenging market conditions, reflected in cost inflation pressures combined with softening product pricing, to continue in the near term though the Board is pleased to note that gross margins achieved by the company have stabilised.
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By GlobalData“Whilst the board is mindful of the potential challenges that lie ahead in the short term, the board believes that these challenges also present potential growth and expansion opportunities for the group. AFG’s strong cash position allows the group to take advantage of the challenging market environment to potentially grow and increase its presence within China through mergers and acquisitions as well as expanding through increasing process automation.”
