Chinese infant formula manufacturer Synutra has posted a first-quarter loss as a decision to stop selling industrial milk powder hit sales.
The infant formula manufacturer said today (10 August) that net losses reached US$9.6m for the quarter ended 30 June against a $10.1m net profit in the same period of last year.
Synutra made an operating loss of $9.8m against an operating profit of $16.3m in the same quarter of the previous year.
Sales fell to $43.8m from $83.7m in the first quarter of its last financial year due to a decline in sales after Synutra decided to not enter into selling milk powder.
Synutra also said $16.6m of its sales moved from the June quarter into early July, which was due to a whey powder delivery timing from its French supplier.
Speaking about the industrial milk sales, CFO Donghao Yang said: “In the past, we have used these sales as a form of short-term financing. We are pleased to note that as our sales performance strengthened, we we were able to meet our short-term cash requirements.”
He added that the company’s French supplier will begin regular shipments in August.