CHINA: Emerald Dairy ups 2008 guidance
China's Emerald Dairy yesterday (15 October) announced it has increased its 2008 revenue guidance to US$42m.
The guidance is a 42% year-on-year increase from US$29.7m in 2007.
Management previously predicted an increase of 30% from 2007 levels. The new guidance reflects demand from new distribution customers, as distributors seek out infant formula products not cited in China's recent quality control scandal, as well as the continued revenue mix shift toward higher-priced products, the company said.
Yang Yong Shan, chief executive officer of Emerald Dairy, said: "We believe that 2008 revenue performance will be driven by our continued revenue mix shift toward higher-priced dairy products in addition to higher than expected demand for our products in 2008.
"Since early 2008, our production facilities have been running at full capacity. The infant formula scandal in China has further sped up the increase in demand for our products."
For 2009, Emerald Dairy said it expects to double its annual capacity as its Hailun City facility begins production, resulting in an anticipated year-on-year revenue increase of 67% to US$70m for the year.
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