Want Want China Profit Drops 11.5%, Stock Plunges 13.1% on Cost Pressures

Want Want China (00151.HK) posted an 11.5% profit decline for the year ending March, sparking a 13.1% intraday stock drop to HK$3.38. The profit decline stemmed from higher costs for imported whole milk powder and palm oil, which reduced gross margins by 1.3 percentage points to 46.3%. The Hong Kong-listed food manufacturer reported these results as revenue grew 3.79% for the period.

Want Want China Reports RMB 3.837 Billion Profit for Year Ending March

Want Want China announced shareholder-attributable profit of RMB 3.837 billion for the year ending March, an 11.5% year-on-year decline. Basic earnings per share reached 32.51 fen. The company declared a final dividend of 1.38 US cents per share, a 32.35% decrease from the prior year.

Revenue for the period totaled RMB 24.401 billion, up 3.79% year-on-year. Gross margin stood at 46.3%, down 1.3 percentage points year-on-year, primarily due to increased unit consumption costs for imported whole milk powder and palm oil.

Stock Falls 13.1% in Afternoon Trading Session

Want Want China shares plunged in afternoon trading, dropping as much as 13.1% to a low of HK$3.38. As of 1:27 PM, the stock traded at HK$3.48, down 10.5%, with turnover reaching HK$21 million.

Company Announces Internal Optimization and Diversification Strategy

The group stated it will continue to optimize internal organization, deeply implement diversification strategy, coordinate balanced development across channels, and strengthen coordination of domestic and overseas operations. The company aims to enhance internal coordination capabilities and decision-making efficiency to strengthen sustainable growth momentum.

FAQ

What caused Want Want China's profit to decline for the year ending March?
Want Want China's profit fell 11.5% due to rising unit costs for imported whole milk powder and palm oil, which reduced gross margins by 1.3 percentage points to 46.3% despite a 3.79% revenue increase.

How much did Want Want China's stock price drop in afternoon trading?
Want Want China shares fell as much as 13.1% in afternoon trading, reaching a low of HK$3.38, and traded at HK$3.48 (down 10.5%) as of 1:27 PM with HK$21 million in turnover.