Synutra International, the Chinese infant formula manufacturer, has raised its full-year outlook having registered an increase in income from operations of more than 50% in the first half of the year.
The company said first-half income from operations increased 53% to US$37.9m for the first half of fiscal 2015, compared to $15.8m in the prior year. Net income attributable to Synutra stockholders was $28.2m for the six months, or $0.49 per share, compared to $10.8m, or $0.19 per share, last year.
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The company said earnings were boosted by lower costs, with SG&A expenses falling from 27.4% of sales second quarter of last year, to 23.2% this year.
The bottom line also benefited from increased sales on higher volumes and a higher proportion of branded sales. Net sales for the first half increased to $188.44m, from $170.8m. Sales from branded powdered formula products increased to $175.0m, or 92.9% of net sales, compared to $139.7m, or 81.8% of net sales, in the prior year period.
Looking to the full-year, Synutra said sales are expected to grow by “at least” 20% to a range of $450-500m. Synutra raised its net income guidance from $50-60m to $55-65m, representing growth of “at least” 75% on last year’s profit levels.
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By GlobalData
