August 21, 2014
Longda's H1 profit slips despite increase in operating income
Shandong Longda Meat Foodstuff Co., Ltd. (Longda) posed operating income of RMB1.695 billion (US$275.43 million) for the first half of 2014, a significant rise of 23% on-year. However, net profit in the same period dropped by 16% to RMB51.95 million (US$8.44 million).
The company generated revenue of RMB1.17 billion (US$190.12 million) from sales of chilled and fresh pork, an increase of 17% on-year. Sales of frozen pork contributed RMB330 million (US$53.62 million), soaring by 39%. However, gross profit margin on its meat products fell by 3.85%, mainly due to the weak hog prices in the first few months of 2014.
Meanwhile, operating cost rose prominently, as the company expanded its marketing scope and increased its advertising spending by 43%.