CHINA: Formula sales boost American Dairy profits
American Dairy FY profits up on 2008
American Dairy booked an increase in net profit for the full-year, boosted by sales of its branded infant formula products.
Net income from continuing operations for the year ended 31 December increased to US$16.3m from net income of $10.6m in the prior year.
Revenue increased 40% to $271.1m in the full-year. Contributions from milk powder products, which consist primarily of the company's higher margin infant formula products, were around $216.2m, up 78% from $121.3m in the prior year period.
Leng You Bin, chairman and CEO said: "We believe we have effectively addressed cross-territory selling activities. Although our rapid expansion presented challenges to our prior information management systems, we have taken steps to ensure that we have the right infrastructure to support our growth in 2010 and beyond.”
He added: “We aggressively increased the number of our sales outlets since the melamine crisis, especially during the fourth quarter of 2009, and we now reach over 95,000 points of sale in China. We believe the increase of our retail outlets will accelerate our expansion in southern China in 2010.”
American Dairy booked a loss from continuing operations of $31.9m in the fourth quarter of 2009, compared with income from continuing operations of $9.4m in the comparable period of 2008.
Revenue decreased 45% to $44m in the quarter.
“As we approach the end of the first quarter of 2010, we are confident that measures taken to address the fourth quarter's operational issues will be effective as we continue to make improvements across all functions,” said Jonathan Chou, CFO.
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