* Q4 revenue slides 0.7 pct, net loss narrows to $36 mln
* 2016 gross margin falls 0.56 percentage points at 31.3 pct
* Stocks ease 0.5 pct after results
(Add details, management comment)
HONG KONG, March 27 Chinese instant noodle maker
Tingyi (Cayman Islands) Holding Corp said on Monday
annual profit plunged 31 percent, hit by higher raw materials
costs and a consumer shift towards healthier food and drinks.
Tingyi, owner of the Master Kong brand of food and the
Chinese partner of Starbucks Corp in ready-to-drink
coffee and PepsiCo Inc in fruit juice, also said it
expects the year ahead to be challenging.
"Looking ahead in 2017, the packaged food industry is
currently facing challenges in the macroeconomic environment,
including the slowdown in economic growth and rising raw
material costs," Chairman Wei Ing-Chou said in a statement to
the Hong Kong stock exchange.
Tingyi said net profit came in at $176.9 million in the
January-December period, its lowest yearly profit since 2006.
The result lagged an average forecast of $190 million from 24
analysts polled Thomson Reuters I/B/E/S.
Revenue fell 8 percent to $8.4 billion.
For the fourth quarter of 2016, Tingyi's revenue slid 0.7
percent to $1.46 billion while losses attributable to owners of
the company narrowed to $36 million against $86 million the same
period a year ago, it said.
Bigger rival Want Want China Holdings Ltd earlier
this month posted a 4 percent rise in yearly profit.
Tingyi said beverages made up 58 percent of its 2016
revenue, followed by noodles at 39 percent.
The market share of its Master Kong instant noodles in terms
of sales and sales volume was 42.9 percent and 51.1 percent
respectively, it cited data from AC Nielsen as saying.
Shares of Tingyi were down 0.5 percent after the results
were announced. That compares with a 0.4 percent fall in the
(Reporting by Donny Kwok; Editing by Edwina Gibbs and Stephen