Pou Sheng International, the distribution and retail subsidiary of Yue Yuen, will have a significant drop in profits and sales in the first quarter due to the re-emergence of Covid-19 in key Chinese markets, including Shanghai. Citing the pandemic’s impact on consumer demand and sentiment accelerated by lockdown measures taken by local authorities, Pou Sheng issued a profit warning today. The group is forecasting a decline of more than 70 percent in consolidated net profit to approximately RMB 108 million (€15.5m) and a 25 percent drop in consolidated revenues to approximately RMB 5,481 million (€788.6m) for the three months ended March 31. Pou Sheng is scheduled to formally release its Q1 results on May 12.

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