Tingyi Holdings saw earnings increase in the first half of 2014 although profits from its two key food divisions fell.
The company booked a 37.7% rise in net profit to US$337m, with EBIT growing 24.8% to $450m. A jump in the profitability from Tingyi’s drinks arm helped the company’s earnings.
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However, the Hong Kong-listed group said EBIT from its instant noodle arm, its second-largest by sales, slid 2.5% to $188.9m.
Tingyi’s instant food division, which sells products including biscuits, made an operating loss of $11.3m, up from $6.9m a year earlier.
The group’s instant noodle sales rose 2.1% to $2.03bn. Tingyi said it outperformed the sector. However, raw material prices weighed on the unit’s profits.
The company’s instant food sales fell 9.5% to $89.7m amid what it called “persistent depression” in China’s biscuit sector. Tingyi said the division’s loss was in “our expected range”. It added a focus for the unit would be on improved cakes and crackers sales.
Tingyi’s total turnover was up 1.5% to $5.5bn.
