Emerald Dairy posted growing profitability in the first nine months of the year as the Chinese baby formula maker focused its mix on higher margin products.

In its earnings release, the group said net income for the nine months to 30 September rose to US$3.7m, up from $1.5m last year.

Sales decreased from $32.5m to $31.2m in the nine-month period, with lower sales weighted to the third quarter when revenue slid from $11.2m to $10.1m.

Emerald said the decrease was primarily the result of its move to subcontract activities as it sharpens its focus on higher margin products.

"Our reputation for high quality continues to drive product demand even in the face of slower economic growth, and our careful management of resources has supported our healthy bottom line," CFO Shu Kaneko commented.