Chinese infant formula firm Synutra International has reported “strong” quarterly results, with sales and earnings better than it expected.
The US-listed company booked a 37.9% jump in net sales to US$101m for the three months to the end of December, the third quarter of its financial year.
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Synutra posted a net income of $10m, compared to a net loss of $13.3m a year earlier when an inventory write-down weighed on the results.
Nevertheless, its gross profit was up on the back of improved sales of branded formula.
Chairman and CEO Liang Zhang said the this year’s earlier Chinese New Year helped Synutra’s sales but also pointed to the company’s own efforts, including its “Goldmining” strategy, which was a bid to market and promote its products more effectively.
“The sequential increase in our branded powdered formula segment sales benefitted from seasonality effects and the early timing of the Chinese New Year, but more fundamentally, was backed by the successful execution of our Goldmining strategy and effective marketing efforts for our specialty formula products. Our distributors increased shipment volumes and we effectively managed our gross margin pressure from rising raw material costs.”
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By GlobalData
