American Dairy, has reported an 81% rise in net income for the first quarter of 2006 to US$4.8m, or $0.29 per share, on sales 91% higher at $25.9m.
Gross profit increased by 116% to $13.5m, with gross margin rising from 46% last year to 52% in first quarter of 2006.
The company, a leading producer of milk powder and soybean products in China, said revenue growth was driven by the increasing popularity of the Feihe brand in mainland China.
“Chinese consumers increasingly demand our premium milk products and the first quarter of 2006 was no exception,” said CEO and president Leng You Bin. “Our overall sales quantity increased 71%, to 6.3m kg, driven by our leading products such as milk powder with nucleotides. We also invested heavily in our Feihe brand by significantly enhancing our advertising efforts, and our top-line growth speaks to this as well.”
American Dairy confirmed its previously announced guidance for the full 2006 fiscal year. The company expects revenues to rise by 76% to $120m, with net income forecast to increase by 72% to $20m.