TINGYI (Cayman Islands) Holding Corp, China's biggest maker of packaged foods, said third-quarter profit rose 26 percent on higher sales of beverages and instant noodles.
Unaudited net income for the three months ended on September 30 was US$76.5 million, or 1.37 cents a share, from US$60.7 million, or 1.09 cents a share, a year earlier, the Tianjin, China-based company said in a statement to the Hong Kong Stock Exchange yesterday, according to Bloomberg News. Sales increased 42 percent to US$995 million.
Tingyi is enlarging its market share by targeting low-income consumers with its "Fu Man Duo" brand. The food maker wants to take advantage of surging retail sales in China, which jumped more than 16 percent in the three months ended in September.
"It uses a cheaper product line for Fu Man Duo products, which can boost its profit margins," Carrie Chan, a Hong Kong-based analyst at ICEA Securities, said before the results were announced. "Tingyi has good brand recognition in China as it provides customized products for different regions."
More than 90 percent of Tingyi's revenue comes from instant noodles and drinks. The company also exports products to the United States, Canada, Singapore, Russia and Europe.
"Master Kong" drinks, its biggest sales contributor, increased revenue 43 percent to US$525 million, according to the statement. Its products include bottled tea, juice and mineral water.
Sales from instant noodles rose to US$407.7 million from US$280.6 million a year ago.