China Minzhong Q4 profit falls 22.6%; group stays upbeat

Singapore

CHINA Minzhong Food Corp's fourth quarter net profit fell 22.6 per cent year on year to 125.9 million yuan (S$25.2 million) as revenue dropped 18.2 per cent to 663.6 million yuan. For the full year ended June 30, net profit fell 32.5 per cent to 509.5 million yuan while revenue eased 10.8 per cent to 2.9 billion yuan.

Significantly, full-year revenue contribution from the processed business segment fell 20.4 per cent to 1.44 billion yuan. The segment, which contributed 49.6 per cent of China Minzhong's full-year revenue, saw a sharp decline in fresh-packed products which, in light of food inflation and rising labour costs, have become less competitive relative to other South-east Asian countries.