Chinese food maker American Lorain Corp. saw full-year profits rise by over 23% on the back of stronger margins and improved sales.
The US-listed company, which makes products from chestnuts to ready meals, posted a 23.8% increase in net profit to US$17.8m in 2010. Gross margins improved from 22.3% to 22.7%. American Lorain’s revenues were up 25.5% at $184.2m.
Chesnut sales, which make up over half the company’s turnover, climbed 13.5%. Convenience food sales climbed almost 64%, while sales of frozen food rose 14%.
Fourth-quarter net income grew 30.4% to $8.2m, as sales increased 30.8% to $82.3m.
Chairman and CEO Si Chen said he was “pleased” with the company’s performance over the year and the fourth quarter.
“We have continued to benefit from our existing long-term supplier and customer relationships, and are gaining significant traction in consumer acceptance of our convenience food products. Despite the various uncertainties weighing on the global economic environment, we have remained growing and profitable,” he said.