Chinese food manufacturer American Lorain Corporation said today (14 August) that its second quarter revenue benefited from an increased focus on convenience sales and brand building.
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The group posted net revenue of US$24m, up 11.3%, in the three months ended 30 June.
“We are currently in the process of adjusting our business model by increasing convenience food sales, building our brand equity through an extensive promotional campaign, and transitioning our domestic sales to third party channels such as sales agents,” chairman and CEO Si Chen said.
However, profits rose by just 2% to $5.3m as margins came under pressure. Gross margin was 22.1%, compared to 24.1% for the second quarter of last year, the group revealed.
The increase in operating expenses was mainly due to an increase of 98.1% in selling and marketing expenses due to an expansion of the company’s sales network, American Lorain said.
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