Chinese meat processor Zhongpin today (11 May) hailed “solid” first -quarter results as expanded production capacity boosted revenues.
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The company booked a 41.5% rise in revenues to US$153.8m during the three months to the end of March. Net income climbed by almost 34%, reaching $9.7m.
Zhongpin CEO Xianfu Zhu said the group’s higher capacity had helped it meet demand during the Chinese New Year.
“Historically, consumers increase their consumption of pork products during the Chinese New Year holidays resulting in a strong seasonal demand for pork in the first quarter,” Zhu said.
“Our ability to quickly ramp up capacity utilization at our newly added facilities enabled us to achieve double-digit growth in revenue and improved profitability, both on a year-over-year and sequential basis.”
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By GlobalDataZhongpin plans to spend some $93.5m on its capital infrastructure this year, with projects including a new pork production facility in Tianjin and a prepared meat site in Changge.
The company stuck to its annual sales target of $780-810m and fully diluted earnings per share of $1.50-1.63.
