Chinese infant formula group Synutra has raised its full-year earnings forecast after witnessing sales growth of “at least” 50% in the second quarter.
In the three months to 30 September, Synutra said revenue climbed by “at least” 50% and is now expected to total US$9-10m. Sales were also up in the period, climbing around 20% to $106-110m.
“These positive results were due to increased IMF sales at the distributor and retail channels,” the company said in a preliminary results statement.
Looking to the full year, Synutra maintained its forecast revenue range of $450-500m and raised its earnings outlook to $55-65m, compared to prior guidance of $50-60m.
Liang Zhang, chairman and CEO of Synutra, said: “We are pleased to see continued strong demand for our core formula brands. In the second fiscal quarter, we experienced sequential and year-over-year increases in both revenue and net profit, despite significant market competition. Our success this quarter was primarily due to increased shipment volumes in a traditionally slow season as a result of our increased strategic marketing efforts.”
The company is scheduled to release a full financial update in November.