Synutra International, one of China's leading manufacturers of dairy-based nutritional products for infants, children and adults, has reported 37 percent year-on-year growth in sales for the first quarter ended June 30, 2007.
Sales in the first quarter ended June 30, 2007 increased by $18.4 million or 37 percent to $67.5 million as compared to $49.1 million for the same three months in 2006. Gross profit was $37.1 million, or 72.7 percent of sales for the three- month period. First quarter net income decreased by $2.6 million, or 33 percent, to $5.3 million from the same three months in 2006. Synutra earned $0.11 per share in the first quarter, down from $0.16 earned in same three-month period in 2006.
Synutra International, Chairman and Chief Executive Officer Mr Liang Zhang commented, "I am pleased to announce further progress on our strategy, which was designed to capture the fastest growing segment of the infant formula market in China. Revenue growth for Synutra in the first quarter of our fiscal year was largely achieved through strong sales of our premium infant formula products and line extensions with healthy margins. We are implementing production processes aimed at enhancing manufacturing efficiency and cost reduction.”