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SpinDistribute.com Article Directory

The following article was published in our article directory on March 22, 2011.
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Instant fine half year three degrees of prices

Article Category: Advice

Author Name: xia zihui

Kang teacher instant noodles and prices. For logistics and raw material costs are high, product gross margin drops, kang teacher next month to raise prices, surface part barrels rise of 10% to 15%.

Yesterday, kang teacher issued, the company announced annual report 2010 earnings three billion, a 2009 24.42% growth from last year, but overall gross margin 28.43% percentage point to down 6.2. Gross margin of instant noodles business percentage point to 2.62 year-on-year drop 28.83%. Kang teacher said, because of the logistics distribution by extreme weather effects, cause freight rise, while the flour, palm-oil prices of raw materials, stress, cause instant noodles profits dropped gross margin business. And said: "after a comprehensive evaluation production transportation cost environment and group will adjust instant noodles to maintain partial products prices, profits growth."

Then, reporters call tingyi Beijing office, relevant told reporters that the kang teacher on the part of the barrel instant noodles products RouLiao upgrade ingredients, the content of raw material costs, plus increased the pressure, on April 1, will be to this part of the product price per barrel weeklong, or 0.5 yuan for 10% - 15%. It is reported, barrels of the company face about 30% of the instant noodles sales.

This is the third time since the year THHC twice the price adjustment, after all, this is in face of recent price of the first weeklong barrel instant noodles. Last October, tingyi has announced that, will be on November 1st products to all of its instant noodles than reach 30% of the marketing "classical bags face series" by each packet weeklong 2 yuan transferred to 2.2 yuan. In February, again to our reporter THHC, said the company has to nationwide supplier issued a notice, the proposal will include kang teacher to braise in soy sauce beef noodle, prawns, fish board face terminal retail price increase in instant noodles 0.1 yuan. And throughout kang teacher three times a reason for the rise, without exception, is "relieve cost pressures". This time, kang teacher also says, raw material prices make industry generally dramatically reduce gross margin.

Reporters were call unity and elephants yesterday in inquiry. United spokesman, told reporters YangShou positive in the company's annual report has yet to announce, and company rules in annual announcement cannot specification. Elephants are DengMin press spokesman, told reporters his current did not know whether there will be a change of Maori products, but the company does not currently have prices increase plan.

Tingyi annals also cites AC Nielsen December 2010 report, tingyi market share in China for 55.8% instant noodles. Industry expert analysis says, tingyi as instant noodles industry eldest brother, every time all can cause industry price with inflation. "How much more the whole industry is falling margins, to ensure that earnings, enterprise will often pass through." price pressure

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