By LU Yibei
Uni-president China Holdings saw its profits shrank last year, despite record income. Revenue in 2021 reached 25.2 billion yuan (US$4 billion), up 10.8 percent. But after-tax profits were down 7.7 percent to 1.5 billion yuan. Revenue from instant noodles was only 9 billion yuan. Drinks made 14.8 billion yuan, almost 60 percent of total revenue.
Optimistic noodle makers over-produced in Q1 last year and retailers had to put the overstocked noodles on discount. Another instant noodle maker Master Kong saw its revenue in the first half of 2021 down by 15 percent.
Instant noodles are losing money because the price of palm oil keeps rising, analysts said. Brands like Li Ziqi and Ramen Talk are taking up more space in the market with fancy packaging and novelty flavors. Moreover, food deliveries compete directly with instant noodles and have stolen many previously loyal customers.
Uni-president has come up with numerous high-end instant foods like self-heating fried rice and hotpot, but that is far from able to support the failing budget-end of the market.
