Food products manufacturer/retailer Want Want China Holdings has changed its financial year end date from December 31 to March 31.

This is because of its products associated with the Chinese New Year and the different timing of the celebration each year. This can result in the group’s operating results fluctuating substantially year on year,  affecting perception of the underlying business performance, it says.

The group has four business segments: rice crackers, dairy products and beverages, snacks and other products, including mainly wine. More than 90 per cent of the group’s business activities are in China.

Applying the new year-end date, the group reports total revenue of RMB9 billion (US$1.3 billion) for the period from April to September, now the first half. This represents a 6.3 per cent increase over the same period last year.

All three key product segments had positive revenue growth – 10.7 per cent for rice crackers, 6.5 per cent for dairy products and beverages (Hot-Kid milk accounted for more than 90 per cent of sales with 10.1 per cent growth) and 2.8 per cent for snack foods.

Sales of ball cakes, hit by counterfeit products last year, resumed positive growth.

With increased costs for raw materials and packaging, gross profit slipped by 4.2 points to 43.7 per cent. The profit margin attributable to equity holders fell by 2.6 points while profit attributable to equity holders dropped by 9.9 per cent to RMB1.2 billion.

Because of 11 fewer days for Chinese New Year sales, the nine months from January to September saw total revenue ease 1.1 per cent to RMB13.5 billion.

The gross profit margin fell by 3.6 points to 44.1 per cent, with profit attributable to equity holders dropping by 13.8 per cent to RMB2 billion, and profit margin attributable falling by 2.2 points to 14.9 per cent.