Company update: China-Biotics boosts probiotic sales

"Our robust fiscal third quarter revenue and earnings growth reflect the company’s continued expansion of our 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 utilization by the end of calendar year 2010.

 

“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."

 

During the third quarter of the 2010 fiscal year, net sales increased 47% to $23.3 million from $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 $5.9 million, representing a 429% increase compared to a year ago.

 

Gross profit for the quarter increased 47% to $16.5 million from $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.