Acquisitions have helped boost Rodobo International’s full year results, with net sales, gross profits and net income all growing at the Chinese dairy group.
Net sales for the year to 30 September were US$69.8m, more than double the level posted in 2009. Gross profit increased 59% to $28m. Net income reached $12.4m, up 82.5%.
The management said that it felt confident to give its guidance for the first quarter of 2011 for revenue to be in the range of $24-26m and net income to be in the range of $3.2-3.5m.
“Rodobo closed its fiscal year 2010 with strong fourth-quarter results and it is our fourth consecutive top-line growth quarter,” said Yanbin Wang, the chairman and CEO of Rodobo. “Our strong revenue and net income growths demonstrated the strong market demand for Rodobo’s high quality, fresh and nutritious milk powder products, the effectiveness of our strategy of expanding our production capacity, and our ability in marketing execution.
“Overall, 2010 was an extraordinary and successful year for Rodobo. The acquisition of the Beixue Group is a key groundwork of our growth strategy. As we move into 2011, we will continue to consolidate our acquisition, realign our product lines and improve our capacity utilisation as we continue to expand our distribution network and further penetrate into our existing market in both formulated dairy and raw milk powder products.”
For the fourth quarter, revenue was $25.3m, up 172.6%. Net income was $3.6m, up 112.4%.
The company said that the increase was primarily derived from a contribution from the acquisition of Hulunbeier Hailaer Beixue, one of the three companies comprising the Beixue Group that were acquired by the company on 5 February.
“We also increased the selling price of whole milk powder products produced by Hulunbeier Hailaer Beixue after the acquisition. The revenue growth was also attributed to the sales of our “Peer” infant formula product series launched in July 2009,” a statement said.