Retailing, Franchising, and Consumerism Business Intelligence in China

China's Qiaqia Food Snack Sales Up 2.09% In H1 2012

Qiaqia Food, a Chinese company focusing on the sales of sunflower seeds and other snacks, announced that its sales increased by 2.09% during the first half of 2012.

The company said that the sales increase was mainly contributed by its sunflower seeds business, which saw a year-on-year increase of 8.33%. However, the sales of its potato chips decreased by 23.38% year-on-year and the sales of its other products decreased by 8.05% year-on-year. The company further pointed out that the decrease of chips sales was due to its sales strategy adjustment in 2012.

Meanwhile, the company revealed that it will maintain its sales goal of CNY500 million for 2012. It is expected to launch two new chips products in August or September and its new nuts product will be launched before the National Day holiday on October 1, 2012.

The company's gross margin in the first half of 2012 was reportedly 30.66%, an increase of 7.1% compared with the same period of last year. On one hand, the prices of raw material saw decreases over the same period last year; on the other hand, Qiaqia had been raising the prices of its major products since March 2011. It reportedly completed the price adjustment between June and July 2011 and it raised the prices by about 5%.

In addition, Qiaqia's report showed that its sales expense rate increased by 2.46%; its management expense rate increased by 2.44%; and its financial expense rate decreased by 0.93%. Its net profit rate was 9.17% in the first half of 2012, increasing by 2.85 percentage points compared with the same period of 2011; while its net profit increased by 48.19% year-on-year.

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