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.

Show the press release

Synutra Announces Preliminary Second Quarter Fiscal 2015 Financial Results

2QFY15 Revenue Expected to Increase At Least20% YoY
2QFY15 Net Profit to Increase At Least 50% YoYRaises Fiscal 2015 Net Income Guidance

October 10, 2014: 08:37 AM ET
QINGDAO, China and ROCKVILLE, Md., Oct. 10, 2014 /PRNewswire/ -- Synutra International, Inc. (NASDAQ: SYUT), ("Synutra" or the "Company"), which owns subsidiaries in China that produce, distribute and sell nutritional products for infants, children and adults, today announced unaudited preliminary second quarter 2015 results and raised full year 2015 guidance.

For the second quarter ended September 30, 2014, the Company anticipates revenue in the range of $106-110 million, representing year-over-year revenue growth of at least 20%. Net income attributable to common stockholders is expected to be in the range of $9-10 million, compared to $6.1 million in the second quarter of fiscal 2014, representing year-over-year growth of at least 50%. These positive results were due to increased IMF sales at the distributor and retail channels.

Based on its strong preliminary second quarter and first half fiscal 2015 results, the Company now maintains its forecasted revenue range of $450-500 million, while raising its fiscal 2015 net income guidance from a range of $50-60 million to $55-65 million.

Mr. 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.  We expect this momentum to continue in the coming quarters, resulting in strong top line growth and greater operating leverage in fiscal 2015."

Synutra plans to release its second quarter financial results in early November.

Original source: Synutra