Master Kang: Materials up again will increase
Master Kong (0322) yesterday announced first quarter results ended as of the end of March, recorded a profit attributable to shareholders 102 million U.S. dollars (about 795 million Hong Kong dollars), representing a growth of 10.12% over the same period in 2009 earnings per share of 1.83 U.S. cents, not dividends. Chief financial officer Frank Lin said that due to seasonal factors and Raw materials Prices soaring and companies in the first quarter gross margin declined 5.02 percentage points to 30.35%. He was referring to the future raw material price increases to a certain extent, will not rule out a reasonable fare increase, the current temporary difficult to determine the rate of increase.
First quarter profit by 10% without dividend
Frank Lin pointed out that the company's first quarter affected by the Spring Festival, the output is low, coupled with rising costs, so margins under pressure, but the monthly output has returned to normal 4-5. He continued, in the first quarter Flour Prices rose 9%, palm, and PET plastic prices rose 3 percent to 6,650 yuan per ton (RMB, same below) and 10,110 yuan, Sugar More than 50% up to about 5,290 yuan per ton; expected sugar prices this year will remain at about 5,000 yuan per tonne level, while prices of palm oil and PET plastic material is about 6,500 yuan per ton and 10,000 yuan.
Master Kong planned for this year's capital expenditure of about 500 million U.S. dollars, 75% will be used for expansion Beverages Business. Frank Lin refers to raw material price increases do not affect the capital expenditure budget, but as the company acquired the production equipment are in euros, while the recent depreciation of the euro will help the company access to foreign exchange gains.
The market share of bottled water while on the Mainland is still ranked No. 1, but the fourth quarter rate of 21.4% over last year dropped to 19.8% now, Frank Lin replied that, bottled water is not the original advantage of the company business, but bottled water market share rose to 30% generally are stable, and that a further substantial reduction in the current opportunity is not large. Bakery business, first quarter pre-tax profit (EB IT ) Plummets from 50% to 2.07 million U.S. dollars, he said, compared to 7,970 million in instant noodle business EBIT, this part of the amount is not large, a limited impact on the company, the team also is reviewing the operations and rectifying channel.
In the first quarter rose 52% debt ratio
In addition, the company's debt ratio in the first quarter increased by 8.71 percentage points to 52.69%, the Finance Department Director and Company Secretary Liu Guowei explained, mainly due to Drinks Significant increase in pre-season payment in advance, and the seasonal increase in accounts payable lead to increased purchases of raw materials, while the advance payment will continue to pay suppliers, material annual debt ratio to return to 50%.
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