February 19, 2010
China-Biotics reports increase in probiotic sales
China-Biotics has increased its sales of probiotics by 47% in the third quarter of its 2010 fiscal year, ended December 31, 2009.
Robust fiscal third quarter revenue and earnings growth reflect the continued expansion of the company''s bulk and retail customer bases, said Jinan Song, Chairman and CEO of China-Biotics.
"Commercial production at our Qingpu production plant is scheduled to begin by the end of February and we continue to expect to reach approximately 50% capacity utilisation by the end of calendar year 2010," he said.
"With rising demand from the dairy and animal feed manufacturers, and movement by the government to encourage the use of probiotics, China continues to be a very favourable environment to grow our bulk and retail probiotics business in 2010 and beyond," he said.
During the third quarter of the 2010 fiscal year, net sales increased 47% to US$23.3 million from US$15.8 million a year ago.
The increase was primarily driven by new customers in the bulk business, the opening of four new retail outlets, an adjustment of product mix, and overall higher demand across the product lines.
Sales of bulk additives were US$5.9 million, representing a 429% increase compared to a year ago.
Gross profit for the quarter increased 47% to US$16.5 million from US$11.2 million in the same period the prior year, primarily due to an increase in overall sales volume. Gross margin was 71%, unchanged from a year ago.