Master chef

23 May 2017 By Lisa Jucca Follow @LJucca

A profit rebound at Hong Kong-listed Tingyi is less than meets the eye. Rising ingredient costs are squeezing the firm, which works with Starbucks and Pepsi, and it relies too much on instant noodles and soft drinks. As China’s tastes get healthier, Tingyi needs to adapt faster.

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Chinese instant noodle maker Tingyi, a partner of Starbucks and PepsiCo on the mainland, reported on May 22 its first quarterly profit rise in nearly three years.

Tingyi said earnings for the three months to end-March rose 15.3 percent to 433.5 million yuan ($63 million). Chairman Wei Ing-Chou said Tingyi’s gross profit will remain under pressure in the short term due to rising raw material costs.

Shares in Tingyi fell in the next trading session. By late-morning in Hong Kong on May 23, they stood 3.7 percent lower at HK$9.36 a share.

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