Processing and Trade Sugar Volume Shrinks YoY, COFCO Sugar's Revenue and Profit Decline in the First Three Quarters

Keyword:
Publish time: 31st October, 2024      Source: CCM
Information collection and data processing:  CCM     For more information, please contact us

  On October 22, COFCO Sugar released its 2024 third-quarter report. For the first three quarters, the company achieved operating revenue of RMB 22.713 billion, a YoY decrease of 4.86%, with a net profit attributable to shareholders of RMB 1.162 billion, down 19.33% YoY. Basic earnings per share were RMB 0.5434.

  

  In the third quarter alone, operating revenue reached RMB 7.757 billion, a 30.41% YoY decline, while net profit attributable to shareholders was RMB 300 million, down 55.41%.

  

  Additionally, the net cash flow from operating activities in the third quarter was RMB 1.38 billion, a decrease of 58.83% year over year.

  

  

  

  

  

  The report shows that the company's operating revenue and net profit fell sharply YoY in the third quarter. The main reason, as explained by the company, is the contraction in the scale of sugar processing and trade compared to the previous year.

  

  

  Signs of Decline in COFCO Sugar's Performance

  The downward trend in COFCO Sugar's performance appears to have continued into the third quarter of this year. According to the company's half-year report, COFCO Sugar's main revenue in Q2 was RMB 7.145 billion, a YoY decrease of 9.9%, with net profit attributable to shareholders at RMB 422 million, down 14.64% YoY. The gross profit margin dropped by 13.58 percentage points to 10.42%, and the return on equity fell from 10.48% to 7.71%. In addition to industry factors, the company's investment income for the first three quarters was only RMB 26.49 million, compared to RMB 193 million in the same period last year.

  

  Public information shows that COFCO Sugar is one of COFCO Group's core businesses. It is a major player in sugar production and importation in China and is also the largest tomato product producer globally.

  

  

  Sugar Prices Remain Sluggish

  In the second and third quarters of this year, sugar prices fell significantly compared to the same period last year, impacting revenue and reducing profit margins for sugar producers. White sugar futures prices have been volatile this year, dropping by 12.96% from January to August. However, due to expectations of reduced production, white sugar futures saw a small rebound, rising by 8.61% between August 23 and October 9. After this rebound, domestic production for the new sugarcane season will fully commence in the fourth quarter, which is expected to increase sugar output to some extent. Under this strong expectation of increased production, sugar prices may continue to face pressure in the short term.

  

  

  

  About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.




People who read this article also read what the article