Chinese infant formula manufacturer Synutra saw losses widen during the 2011 fiscal year, as it was hit by a food safety scandal earlier in the year.
Late yesterday (14 June), the group reported a US$40.1m net loss for the year ended 31 March, against a $24.6m net loss in the previous year.
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During the company’s second quarter, unsubstantiated claims were made that its products caused premature breast growth in three infant girls.
Synutra chairman and CEO Liang Zhang said the company was “pleased to note” strong sequential growth recorded between the fourth and previous two quarters when it was impacted by the “hormone crisis”.
Fourth-quarter losses narrowed against the third quarter, down to US$8.5m against $11.9m in the third quarter. Losses also narrowed on a year-on-year basis, down on the $20.5m loss booked in the fourth-quarter of 2010.
On a quarter-on-quarter basis, sales were up 79.3% to reach $79.3m and up 79% on the fourth-quarter of 2010.
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By GlobalDataBranded formula sales accounted for some 60.9% of net sales in the quarter against 46.8% of net sales in the third-quarter.
