April 11, 2008

China's Yurun Food posts 79 percent profit increase, boosted by pork sales

China-based meat producer, Yurun Food Group, posted a 78.7 percent rise in net profit for the 12 months ended December 2007, as a result of rising pork sales.

Net profit rose from HKD481 million (US$62 million) last year to HKD859 million (US$110 million) this year.

Yurun's revenue also saw a year-on-year rise of 86.9% to HK$8.64bn, the company reported.

The chilled meat and low temperature meat product business remained the main growth driver of the group's overall revenue in 2007.

Chilled meat hit HKD1.75 billion (US$224 million), up 51.2 percent from the previous year, while meat product business jumped 124.6 percent to HKD4.7 billion (US$603 million).

The Hong Kong-listed company is hoping to focus on brand-building, diversifying distribution channels and penetrating mid- to high-end markets to achieve higher profit margins for the future, it said.