CHINA: Infant formula firm Synutra hails "strong" Q3 results
Synutra saw sales of branded formula improve
Chinese infant formula firm Synutra International has reported "strong" quarterly results, with sales and earnings better than it expected.
The US-listed company booked a 37.9% jump in net sales to US$101m for the three months to the end of December, the third quarter of its financial year.
Synutra posted a net income of $10m, compared to a net loss of $13.3m a year earlier when an inventory write-down weighed on the results.
Nevertheless, its gross profit was up on the back of improved sales of branded formula.
Chairman and CEO Liang Zhang said the this year's earlier Chinese New Year helped Synutra's sales but also pointed to the company's own efforts, including its "Goldmining" strategy, which was a bid to market and promote its products more effectively.
"The sequential increase in our branded powdered formula segment sales benefitted from seasonality effects and the early timing of the Chinese New Year, but more fundamentally, was backed by the successful execution of our Goldmining strategy and effective marketing efforts for our specialty formula products. Our distributors increased shipment volumes and we effectively managed our gross margin pressure from rising raw material costs."
Synopsis Baby Food China examines the trends in the baby food market for 2006-2012, with forecasts to 2018. It examines how live birth rates, breastfeeding trends, the economic crisis, new product and...
This report analyzes the worldwide markets for Baby Foods and Infant Formula in US$ Million by the following Product Segments: Infant Formula (Baby Milks/Baby Formulas), Baby Meals, Baby Cereals, Baby...
- SIAL 2014: Greek yoghurt firm Fage targets Europe
- On the money: Spreads, ice cream top Unilever woes
- Why Nestle is relaxed about the China "drag"
- Focus: Will Danone return to growth in dairy?
- SIAL: French firm Michel et Augustin to enter US
- SIAL 2014: Premier in talks over US manufacturing
- Kellogg, Nestle slammed for "chaotic" salt policy
- Premier cautious on profits after Q3 sales slide
- Mars puts R&D at centre of US plant expansion
- Italy warns of EUR200m hit from Russia ban