Chinese dairy and soy manufacturer American Dairy has beat previously announced expectations, posting an 81% increase in full year revenues which rose to US$122.8m in FY2006.
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Despite the increase in the number of outstanding shares from 16.1m to 18.1m, earnings per share rose 54% to $1.14.
The company said that the successful year was the consequence of increased market penetration thanks to a higher advertising expenditure, which bolstered the strength of the Feihe brand
Leng You Bin, CEO and president, said: “Our financial results for 2006 exceeded our expectations and we generated revenue growth of 81% off of sales volume growth of 68%. Despite significant investment in the Feihe brand and expenses related to the build out of new facilities in 2006, we still increased our net income by 71% for the year.
He added that the company has continued to invest in the future growth of its brands: “We are actively using our capital to create future growth. Throughout the year, and especially in the fourth quarter, we strategically invested in our brand and our infrastructure. While we have yet to see the revenue and margin benefits from these material investments, our financials reflect the cost of planning for future success as we build one of China’s leading consumer companies, and create significant shareholder value for many years to come.”
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By GlobalData
