American Dairy, the US-listed Chinese food group, said it expects to see a 10% increase in revenue year-on-year when it releases its second quarter results.

The company said it expects revenue to increase to around US$41m from $37.3m reported in the corresponding period of 2008.

Sales for the company's core infant formula business in the second quarter of 2009 are also expected to increase, by more than 100% year-on-year.

The company said it sees full year 2009 revenues reaching $330-$360m, representing an annual growth rate of around 80% from 2008.

CEO Leng You-Bin said the company's focus is now to become a "top-tier producer" of branded infant milk formula products.

"I believe we have only just begun to recognise growth in the infant milk formula market, and we recently made investments to help us achieve these market share goals," he said.

Chairman Liu Hua added: "We intend to achieve this through continued investment in brand awareness of our Feihe brand particularly in Tier 1 cities and other parts of China, while strengthening our existing, dominant presence in the North and East of the country."

The company said it intends to increase its point of sales presence to around 100,000 retail locations throughout China, up from the current 80,000 locations.