China focus: CoQ10 demand, ADM’s probiotic expansion, Feihe’s profit growth, and more
CoQ10 demand in China persists but gross margin is low – Doctor's Best owner Kingdomway
Claiming to be the world’s largest producer of CoQ10, the company said demand for the ingredient and its finished products remained high, but market prices trekked at the lower end.
Low gross margin from its coenzyme Q10 (CoQ10) ingredient and finished product business was one of the reasons for its decline in net profit.
Functional foods potential: ADM expanding probiotic opportunities in Australia and China
ADM is hoping to see probiotic growth in Australia and China after receiving regulatory approvals for its Bacillus subtilis DE111™, with the firm targeting a wide range of food and beverage products due to its stability and shelf life benefits.
ADM’s spore-forming probiotic Bacillus subtilis DE111™ was approved by the National Health Commission (NHC) in China in April.
This has allowed the company to explore new applications for products that support gut health.
High-end hopes: Feihe's half-year profit up 18% as it steps up consumer engagement
The biggest infant formula milk player in China said half-year revenue for FY24 went up slightly by 3.7 per cent to RMB$10.1bn (US$1.4bn). This is a stark contrast from its FY23 full year results where profit shrunk 33.5 per cent due to systemic challenges arising from low birth rate.
Overall, Feihe believes that China’s infant formula market will remain stable, especially in the premium product segment where growth will be led by rising income.
Kuaishou kicking-on: EZZ’s net profit soars 91% from strong NMN, bone health demand in China
“China has been a strong growth market for the company this year and we expect it to continue following the strategic relationships we announced during the last quarter of FY24,” said Glenn Cross, EZZ chairman, on the FY24 results.
Cross told NutraIngredients-Asia previously that sales from China’s content community and social platform Kuaishou was fast catching up with Tmall Global and Douyin.
Kuaishou has even become its second largest distribution channel after Douyin – China’s version of TikTok.
Formula slump: H&H Group reports “challenging” first six months with net profit down nearly 50%
Health and Happiness Group (H&H Group) saw its net profit plummeted 49.7 per cent for the first six months of this year – a “challenging period” which it said was primarily due to a downturn and discounting in the infant milk formulas segment.
The company explained that there have been difficulties clearing batches of infant formulas that were approved under China’s old national or guobiao (GB) standards. This structural challenge, it said, was affecting the entire industry.
