China Marine Food Group saw its second-quarter net income drop on the back of reduced seafood consumption following the Japanese earthquake and nuclear scare in March.
The company said on Monday (8 August) that, for the quarter ended 30 June, net income was down 82.5% to US$1m.
Net sales fell 19.9% to $22.1m, which the company attributed to a 30.8% “temporary drop” in seafood consumption in China stemming from the disaster in March. Monthly sales have stabilised from June and moderately improved as consumer confidence has returned, the company said.
Revenue from the company’s Hi-Power algae-based energy drinks were up 10.7% to $8.6m.
However, China Marine said it did not expect seafood consumption to “fully recover” this year and cut its forecasts for full-year sales and profits.
The company still expects revenues to rise but at a slower rate. It now sees revenues growing 5.9% to $130m, compared to a forecast it made in March of over $150m.
China Marine now forecasts that consolidated adjusted net income will fall by 37% to $14.8m. In March, it predicted a 16.1% increase to $27.3m.