Chinese dairy group American Dairy has reported “softer than anticipated” results after the US-listed group swung to a loss during the first half of the year.
For the six-month period, the company made a net loss of US$15m from a profit of $35.4m in the prior year.
Go deeper with GlobalData
Revenue decreased 13.8% to $133.6m, largely due to increased competition from new companies entering China’s infant formula sector and from old competitors aggressively attempting to reclaim market share following the melamine crisis, the firm said.
Leng You Bin, chairman and CEO of American Dairy, said: “2010 has been a unique year of fine-tuning of our operations. This quarter’s results were softer than anticipated, but we are addressing this with certain initiatives to improve future results.”
In the second quarter, the company made a net loss of $20.7m versus net income of $7.6m in 2009.
See Also:
Revenue, however, was up 26.7% to $52.2m due to an expansion of the company’s market areas and distribution network throughout China.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
