Chinese meat processor Zhongpin today (25 March) posted full-year revenues of US$291.4m, double the figure reported in 2006.
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Fourth-quarter revenue totalled $100.6m, an increase of 111%.
Full-year gross profit at the Chinese food group was up 81.9%, climbing to $37.5m, while net income rose to $0.80 per share.
The company attributed its strong revenue growth to the rising price of pork products in China and increased market penetration.
“Our outstanding revenue growth illustrates the strong market demand for Zhongpin’s high-quality, fresh and nutritious pork products combined with our ability to effectively expand our production capacity,” Xianfu Zhu, Zhongpin CEO, said.
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By GlobalData“Production at our new facilities has ramped up more quickly than expected and we are ahead of schedule in bringing our next round of facilities on line, which we believe will result in continued strong organic growth in 2008.”
Looking to the coming year, Zhongpin said it plans to expand its production capacity through the construction of new facilities and acquisitions.
Based on its current expansion plans, Zhongpin predicted revenues for the 2008 fiscal year of between $490m and $520m, gross margin between 12.6% and 13% and net income of between $30m and $33m.
