American Lorain Corp. has reaffirmed its guidance for the current fiscal year and announced growth estimates for 2010, saying a nationwide marketing campaign will boost sales.
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The company said that it was reaffirming guidance previously provided in its third-quarter earnings conference call, which was held last Friday.
The Chinese group expects total sales revenue between US$146m and $148m for the fiscal year ending 31 December.
Si Chen, chairman and CEO of American Lorain, said: “This would represent a revenue increase of 10%-12% for 2009 over 2008 levels. Furthermore, we expect net income of between $14.4m and $14.8m in the 2009 fiscal year. Our expectations for fiscal year 2009 sales revenue and net income are consistent with previous guidance for low-to-medium double-digit top-line growth.
For the fiscal year ending 31 December 2010, the company issued new guidance for total sales revenue of approximately $182m to $190m. This would represent an increase of 25%-30% for 2010 over 2009 levels. It also projected income of approximately $17.8m to $19m in the 2010 fiscal year.
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By GlobalDataChen continued: “For fiscal 2010, our revenue and net income projections are based on three major factors.
“First, our strategy of strengthening our domestic sales channels through shifting sales to agents will provide a wider distribution for our products with access to more supermarkets and convenience stores.
“Second, our new agreements with popular chain restaurants in China, such as Kungfu Catering Management Co. Ltd. and CSC Catering Management Co., will begin adding significant revenue in 2010. Third, our nationwide marketing campaign, funded by the recent private placement transaction which raised approximately $12m, will boost sales, particularly in the convenience food segment.”
