Half-year profits for Chinese independent dairy Rodobo International jumped by 77%, boosted by rising sales.
For the six months to 31 March, net income grew to US$3.1m compared with US$1.7m for the 2008 period.
Rodobo said the increase was attributable to an increase of subsidiary income from government support funds, from US$0.09m to US$0.44m.
Revenue for the first half reached US$15.2m, an increase of 63% compared to the first six months of the previous year. The growth was driven by higher volumes and the launch of the product line “Healthy Elderly”. Sales for the line generated around $3m in the period.
Operating income increased to US$2.7m, up 66% on last year.
CEO Yanbin Wang said: “During the first six months of our fiscal year, Rodobo International has experienced an impressive growth in revenues and earnings. This trend slowed down during the second quarter.
Wang added: “We focus on providing high-quality premium products for all our consumers and the construction of our dairy farm demonstrates the company’s dedication to this vision. We expect that our new and advanced dairy farm will start operating towards the end of fiscal 2009 and this will give us a tremendous competitive advantage in terms of high quality raw milk resources.”
Sales of whole milk powder formula represented 31% of total sales compared to 39% in the comparable six months of 2008. Sales of baby/infant formula represented 49% compared to 50% in the same period last year.
In the second quarter, net income was relatively flat, edging up to US$1.2m from US$1.1m in the previous year. Revenue rose 19% to reach US$6.3m.