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Century Global Commodities hails rapid growth of food business; posts second quarter results

Last updated: 16:13 09 Nov 2017 GMT, First published: 11:13 09 Nov 2017 GMT

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Demand for high-quality and healthy food in China is growing tremendously, the firm said

China focused Century Global Commodities Corporation (TSE:CNT) revealed strong growth in its food business, as it reported results for the second quarter to end September.

Sales began in January 2016, when it began generating revenues from initial sales to customers in Hong Kong and sales have been growing since.

"...we have successfully established a marketing and distribution network covering some strong international brands," the firm said in a regulatory statement.

More international suppliers..

"This has attracted more international suppliers, offering us increased product opportunities that should form the basis of continued growth."

"As China’s economy moves from a development stage, investing in fixed-assets, to a consumer orientation, it is creating the world’s largest and rapidly expanding middle-class population," the group said.

"As a result, the demand for high-quality and healthy food is growing tremendously."

Food sales on the rise..

Food sales were C$87,165 from January to March, 2016, and in the same period of 2017,  that figure had risen to C$525,631.

For the latest second quarter as a whole, revenue stood at C$720,488, up from C$349,217 in the same period last year.

The net loss narrowed to C$883,091 versus a loss of around C$1.8mln last year.

Working capital stood at C$26.2mln, which included cash, bank deposits and an investment portfolio of C$15.5million.

Recovery of iron ore...

Regarding the iron ore business, the group said: "We continue to support our large portfolio of quality iron ore assets.

"Recovery of the iron ore market has been clear during the current fiscal year, with iron ore prices experiencing a mini-cycle recovery in July and August but the price has moderated somewhat towards period end.

"We are maintaining a market observer position for our iron ore business while retaining a small, lean mining team ready to rapidly advance our iron ore projects once a sustained market recovery is evident."

Century Global shares were unchanged in Toronto at C$0.17 each.