Leading Chinese manufacturer of dairy-based nutritional products Synutra International has posted strong profits for the second quarter and first six months of the year driven by growing sales.
Sales in the second quarter were up by US$17.8m or 70.8% to $43.1m. Gross profit totalled $24.1m, or 56% of sales for the three-month period. Second quarter net income increased year-on-year by $5.1m, or 380%, to $6.4m, while EPS totalled $0.13 in the second quarter, up from $0.03 earned in the prior-year period.
“We are proud to report another quarter of increased revenue, robust sales and strong profit growth. Our performance in the second quarter reflected the success of our premium brand, led by our Super series, which continued to gain momentum in the fastest growing segment of China’s infant formula market,” commented chairman and CEO Liang Zhang.
Sales in the first half increased by 101% to $85.7m while gross profit was $46.2 million or 53.8% of sales for the first six months. Net income increased by $12.5m to $15.m. Earnings per share were $0.31 versus $0.06 in the first six months of the prior fiscal year.
“Synutra’s growth in China’s high margin premium infant formula market has been strong and steady; we remain committed to improving our market position and building acceptance of our high-quality products,” said Synutra’s chief executive officer.