China Food Group
China Food Group operates food manufacturing businesses producing a range of condiment products, including soya sauce and vinegar, under its 'Fushi' and 'Fushi Hao Tai Tai' brand names and a range of animal feeds covering premix, concentrate and compound feedstuffs.
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China Food says condiments and animal feeds divisions hit by global downturn
China Food Company (AIM: CFC) came under pressure again this morning, after the manufacturer of consumer condiments and animal feeds warned that it was feeling the impact of the global economic slowdown.
In a statement released to the market, the company reported that its Animal Feed business had been hit by a combination of lower demand, lower prices and increased competition. Meanwhile, at the company’s consumer condiments division, a slowdown in China’s restaurants and corporate gift market, combined with consumers opting for cheaper priced products, had impacted sales.
Looking ahead to the second half of the year, China Food remains hopeful that China’s significant financial stimulus packages will help boost business. Nonetheless, the company added that it was taking on a more conservative plan for the remainder of 2009, and would be cutting overheads and adjusting pricing and product strategy to align its business with the more subdued demand.
“The Board is hopeful of an improved performance in the second half as the economy starts to pick up but given current conditions does not expect results for 2009 to match those achieved in 2008,” the company stated.
Shares in China Food Company fell 33% in early trading.
Other China Food Group news
- China Food Company sees full-year results slightly ahead ofexpectations
2010-02-11 - China Food Company plans to raise £6.5 million for expansion in Chinese market
2009-11-03
