By Bingyan Wang
Chinese snack and beverage maker, Want Want China, experienced a 20% decrease in profits in the financial year that ended on March 31st. The decrease was due to a decline in revenue as China’s strict epidemic controls slowed business activity and curbed consumption.
The company recorded a full-year net profit of ¥3.37 billion ($465.6 million), compared to the previous year’s net profit of ¥4.20 billion. The drop in profit was mainly due to a 4.4% reduction in revenue to ¥22.93 billion, as well as higher administrative expenses.
Revenue from the dairy products and beverages segment recorded a mid-teens percentage decrease, which further added pressure to Want Want China’s overall annual performance, said the company in the statement.
“The Group once again experienced the tough challenges of the pandemic” in 2022, stated Tsai Eng-Meng, Chairman of the Board and Chief Executive Officer.
Despite the challenges faced by the pandemic, the company sees more opportunities as China emerges from its impact. Want Want China has vowed to strengthen its business operations, enhance connections with small-scale retail stores, and launch a series of small-pack products.
Want Want recommended a final dividend of 2.10 U.S. cents per ordinary share.