American Dairy, the US-listed Chinese food group, has posted an increase in first-half net profit and reaffirmed its guidance for 2009.
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Net income for the six-months to 30 June increased 193.5% to US$35.4m. Net income from continuing operations for the first-half reached $32.1m from $10.7m in the prior year.
Sales increased 102.9% to $155m for the half-year period.
“We believe we have increased infant formula market share since the third quarter of 2008 in a very competitive environment, and we remain committed to being one of the leading infant formula providers in China,” said Jonathan Chou, CFO.
The company completed a $15.3m debt repurchase in July related to the restructuring of its 1% guaranteed senior secured convertibles notes, with the remaining payment of $46m due in October.
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By GlobalDataAdditionally, last week American Dairy struck a deal with Sequoia Capital to raise $63m through the placement of 2.1m shares with the investment firm.
The Chinese infant formula maker said that the purchase price includes $47m in cash and the conversion of a $16m bridge loan. The transaction is expected to close by the end of this month.
“We are very pleased to enter into a financial partnership with Sequoia Capital, a renowned private investment firm known for assisting high growth companies. We believe our financial position will provide us flexibility to achieve our strategic goals and continue to gain market share going forward,” Chou said.
The company reiterated its revenue guidance for 2009 of $330m – $360m.
