China’s Emerald Dairy posted an increase in first-half net profit on Friday (14 August), boosted by an increase in gross profit, due to “substantial” reductions in the cost of goods sold.
Six-month income for the period to 30 June rose to US$2.8m from $701,168 for same period in 2008.
Total revenues for the first-half dropped slightly however, to $21.1m from $21.3m in the previous year.
Shu Kaneko, CFO of Emerald Dairy, said: “Sales revenues declined slightly as we shifted to produce more of our higher margin product line and increase our sales prices, but we were able to curb our costs sharply through reductions in the price of raw materials and by reducing subcontracting work.”
Earnings per share grew to $0.10 from $0.02 in the year-ago period.
Kaneko said the company is to continue with plans to triple its production capacity and revenues in the next three years, beginning with the completion of a processing plant in Hailun City later this year.
“We are especially pleased with the positive response we are receiving from the investment community to our exciting growth potential,” Kaneko added.
