Chinese Drinks Giant Sees Beverage Sales Fall 11% to USD984 Million in First Half
Zhang Xia
DATE:  Aug 09 2017
/ SOURCE:  Yicai
Chinese Drinks Giant Sees Beverage Sales Fall 11% to USD984 Million in First Half Chinese Drinks Giant Sees Beverage Sales Fall 11% to USD984 Million in First Half

(Yicai Global) Aug. 9 -- Sales at China's largest juice drinks maker, Uni-President China Holdings Ltd. [HKG:0220], fell more than 10 percent annually in the first half.

Total revenues fell 7.1 percent to CNY10.8 billion (USD1.6 billion) while net profit plunged 26.5 percent to CNY570 million (USD84 million).

First half beverage sales, Uni-President China's key business segment, fell to CNY6.6 billion, down 11.4 percent from the same period a year ago. This marks the second consecutive year of decline in the segment after a fall of 9.9 percent in the first six months of last year.

Uni-President attributed the drop to the firm's adjusted sales pace and reform of its traditional operating model, which began in the second half of last year.

The Shanghai-based firm has seen a number of organizational changes since last June, including the introduction of zero-based budgeting, distribution reform, and the combining of beverage and food segments. The company felt that some distributors were unable to adapt to the market and lacked the motivation for continuous operations.

The enterprise's newly launched Rocket and Fighting beverages were poorly received by the market and adversely affected business performance.

Liu Xinhua, new general manager at Uni-President, had previously set a sales goal of CNY21.9 billion for the year, though the first half results were not on track.

Uni-President China is the mainland China subsidiary of Uni-President Enterprises Corp. [TW:1216], the largest processed food producer in Taiwan.

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Keywords:   Uni-President China Holdings,Performance