Grocery giants China Resources Enterprise and Wumart Stores have reported strong growth in profits and sales for the first half of 2011, as consumer spending in China continued to remain strong.

For the half, net profit at CRE dropped by 63% to HK$1.57bn (€139m), but this was due to a major asset disposal boosting its year-ago profit, and excluding that, profits were up. Meanwhile, revenue rose by 28% to HK$41.57bn (€3.69bn), helped by gains in all its main divisions.

The Retail unit saw sales rise by 27.8% to HK$34.4bn, helped by the expansion of its Vanguard and Ole supermarkets into new regions, and the consolidation of its ‘Chinese Arts & Crafts’, ‘Care’ and ‘Pacific Coffee’ chains. The Beer unit saw sales rise by a similar 27.8% to HK$12.8bn, and said it had a 20% share of China’s beer market at the end of the quarter. Meanwhile, the Food & Beverages units saw their combined sales jump up 30.4% to HK$6.2bn.

CRE noted: “We are optimistic about the consumer market in China … The Group will also step up its efforts in market expansion and brand promotion for its beer, food and beverage businesses in order to expand its market share”.

Separately, the Beijing-based Wumart chain said net profit jumped up 20.1% to 336.8bn yuan (€37m) during the half, while sales rose by 18.6% to 7.15trn yuan (€775m), while like-for-like sales were up 12%.

Results were helped by the integration of the MerryMart chain during the quarter, as well the introduction of in-demand premium foods and beverages at its chain.

Wumart operated 512 outlets at the end of June, including 124 superstores and 388 mini-marts. The company said it will continue to expand, adding: “We have stepped up the opening of convenience stores on school campuses, at government entities, business units, and office buildings in addition to the ongoing development of its business-based and mobile convenience stores”.

Source:kamcity