Chinese infant nutrition group Feihe International has booked an increase in third-quarter profits, which it said were “significantly better” thanks to a focus on higher-margin products.

In an earnings release on Friday (9 November), Feihe said net profit rose to US$7.5m, up $7.1m from the comparable period of last year when a tax expense hit the bottom line. Sequentially, earnings were up 29% from the second quarter of this year.

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The company said the gain was driven by gross margin, which rose to 54.9% from 35.5% as Feihe focused on higher-margin quality products. Sales during the period were also up, climbing 4.3% to $66.1m.

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