Chinese infant formula manufacturer Feihe International has reported a sharp increase in second-quarter income as the company increased sales of premium branded milk products.
The company said yesterday (9 August) that its net income climbed to US$5.2m in three months to the end of June, compared to a $20.6m loss reported in the same period of last year.
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Revenue “exceeded expectations” and was up 39.1% to $72.6m over the quarter. Sales from branded products rose 54.6% to $54.1m on the previous year and was up 12.9% on a sequential basis.
However, revenue from raw milk powder fell 61.8% to $5.2m. Feihe said the decrease was due to “increase sales at existing retail sales points”.
Chairman and CEO Leng You Bin said the company was “extremely pleased” with its second-quarter results, which he said demonstrated the progress it had made “in strengthening our footprint in the competitive Chinese infant formula industry”.
For the first half of 2011, net income reached $9.9m, compared to a loss of $15m in the same period of the previous year. Revenue increased 11.6% to $14.1m.
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By GlobalData
