Russian baby food producer Nutritek today (27 June) indicated that it is eyeing expansion in international markets when it booked a 14.7% growth in operating profits on the back of a 4.7% growth in revenues.

Operating profit for the year ended 31 March totalled US$44.8m while revenues increased to $396.9m. Earnings per share reached $1.66, down 3.3% year-on-year.

Gross margins rose from 19.1% to 20.7%, despite an increase in distribution expenses of 8.6% to $22.6m due to increases in advertising, marketing and baby food transportation expenses.

During the year Nutritek sold its Russian dairy food business for $350m in order to increase investments elsewhere. As a result revenues from the dairy segment reduced by 16.5% year on year to $192.2m.

Earlier this month, the company acquired a 51.5% stake in New Zealand Dairies Ltd milk and baby food business.

"We have laid a strong foundation for turning to scheduled international expansion of the group," CEO Oleg Ochinsky said.

"We have seen strong growth domestically and we are now increasingly focused on international markets to drive profits," a spokesperson for the company added. "The plant we launched in New Zealand provides us with a base for further expansion internationally."

The importance of the company's baby food and special nutrition unit also increased during the fiscal year, with revenues climbing from 39% to 51.6% of Nutritek's total revenues. This was partially driven by rising sales, which grew 37.5% to $204.6m.