Uni-President Enterprises Corp (統一企業), the nation’s largest food producer, on Friday reported its first-half net profits rose 21.88 percent from a year earlier, thanks to growth in its core business and contribution from investment gains.
The Tainan-based company, which counts President Chain Store Corp (統一超商) and Uni-President China Holdings Ltd (統一企業中國控股) as major earnings drivers, said net profits for the six months ending on June 30 were NT$6.22 billion (US$194.2 million), or NT$1.45 per share, up from NT$5.1 billion, or NT$1.19 per share, a year earlier.
The company’s filing with the Taiwan Stock Exchange showed that first-half net profit included a net NT$5.1 billion in income from long-term equity investments, mostly due to investment gains in President Chain Store and TPO Displays Corp (統寶光電), as well as a net NT$219 million in divestment gains.
Without the contribution from non-core operations, Uni-President’s operating profit was NT$825 million in the first six months, a decline of 21.65 percent from the same period a year earlier the because of higher prices of raw materials, such as corn, wheat and soybeans. Gross margin lowered to 23.57 percent from 24.97 percent a year ago, the filing showed.
Revenue in the first half totalled NT$22.89 billion, up 6.47 percent from NT$21.5 billion the previous year. Uni-President attributed the growth to increases in sales across the board amid a recovering economy, a separate press release said.
Uni-President’s increasing business focus on China, compared with a saturated home market in Taiwan, and the improving performances at its subsidiaries in Southeast Asia, helped boost the company’s net profit to reach the highest quarterly level since the fourth quarter of 2007, when it posted NT$3.5 billion.
The second-quarter net profit was NT$3.13 billion in the April to June period, up 1.29 percent from NT$3.09 billion in the first quarter and 3.3 percent higher from NT$3.03 billion a year ago. Quarterly revenue rose 12.14 percent to NT$12.1 billion from NT$10.79 billion in the first quarter and was 7.36 percent higher than the NT$11.27 billion posted the previous year.
Even so, the company’s share price has fared poorly this year. In trading on Friday, Uni-President’s shares closed at NT$35.6, down 9.76 percent since the beginning of the year, while the TAIEX fell 5.68 percent during the same period.
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