Sino Grandness profits up 28.9% to $244.8m in FY14

Due to improvement in beverage segment and shift in product mix.

Sino Grandness saw growth last year, driven by higher orders for own-branded beverage and domestic canned products segments.

According to a media release, the group reported a 28.9% rise in gross profit, from SG$191m to SG$244.8m.

Beverage sales tend to be higher in 2Q and 3Q after delivering orders which were secured at the largest F&B trade exhibition in Chengdu in late March each year. 4Q14 beverage sales grew 4.9% yoy as a bigger proportion of orders for second half of the year were delivered in 3Q14 with record quarterly sales of RMB622.5m.

Sales in second half of 2014 (“2H14”) were approximately RMB1,007.4m, up 25.8% from RMB801.0m in same period last year. Garden Fresh juice sales growth remained strong due to positive response to new product launches and further expansion of distribution network.

Sales hit record high in FY2014 rising 35.8% yoy to approximately RMB 1.88b. About 75% of beverage sales comprised of loquat and loquat-blended juices in FY2014.

Domestic canned products (which consists Grandness canned fruits) also reported higher contribution to Group revenue, rising to 10.9% in FY2014 from 8.4% in FY2013. In FY2014, China markets sales increased further to 77.5% of Group sales from 69.5% due to stronger sales from beverage and domestic canned products while Europe remains the second largest market, declining to 20.3% in FY2014 from 27.3% in FY2013.