Chinese infant formula manufacturer Feihe International said today (10 May) that net income fell during the first quarter on the back of a decline in sales.
Net income reached US$4.7m in the quarter ended 31 March, against $5.5m in the same quarter of the previous year.
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Revenue was down to $76.4m against $81.4m recorded in the previous year.
The company attributed the decline in sales to a $16.9m drop in sales of milk powder, which was partially offset by a $3.7m increase in raw milk powder sales and a $8.8m increase in raw milk sales.
Fiehe International said it faced “increased competition from new competitors entering the company’s industry and old competitors aggressively attempting to reclaim market share”.
“Our results of $76.4m in revenue and $4.7m in net income demonstrate the progress we have made the last few months in strengthening our brand and market position, and our footprint in the competitive Chinese milk powder industry. With strong profits in the past few quarters, we plan to continue improving our operations across all functions, including improving the cost effectiveness of our selling expenses and increasing sales at existing retail sales points to drive greater profitability,” said chairman and CEO Leng You Bin.
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By GlobalData
