Yihai Kerry sold nearly 70,000 tons of food in Shanghai during the lockdown
(Yicai Global) May 13 – Chinese edible oil and grain supplier Yihai Kerry Arawana Holdings has supplied Shanghai residents with nearly 70,000 tons of foodstuffs during the city’s more than month-long lockdown.
The agriculture and food processing company has kept its factories open using a closed-loop system since March 28, meaning more than 500 workers live in production facilities to comply with Covid-19 restrictions from the eastern city, Shanghai’s Yicai Global learned. – based business.
The company had supplied about 16,500 tons of edible oils to the Shanghai market as of May 8. Yihai Kerry is a unit of Wilmar International which is owned by the Singaporean conglomerate Kuok Group.
Yihai Kerry is optimistic about its 2022 sales even though the Covid-19 pandemic and rising raw material costs have affected its first-quarter net profit to some extent, an insider at the owner of the Arawana and Golden brands said. Carp at Yicai Global.
In the first quarter, Yihai Kerry’s net profit fell nearly 93% to CNY 114 million (USD 16.8 million) from a year ago due to soaring raw material costs that led to a shrinking gross margins, according to the company’s earnings report. Its turnover increased by 11% to reach 56.5 billion CNY (8.3 billion USD).
Yihai Kerry is expected to sell more products in 2022 than last year, mainly because market conditions in the soybean processing industry are improving, according to the same person. Still, a specific forecast for the entire year would be difficult to make, the person added.
Local authorities helped Yiwai Kerry apply for permits to secure production and logistics during the lockdown and even sent medical supplies and vegetables to its workers, the source added.
Editors: Tang Shihua, Emmi Laine, Xiao Yi