Earnings Per Share Was $0.13, a 333% Increase Over the Same Period in 2005
QINGDAO, China, and ROCKVILLE, Md., Nov. 14 /Xinhua-PRNewswire/ -- Synutra
International, Inc. (OTC Bulletin Board: SYUT), one of China's leading
manufacturers of dairy-based nutritional products for infants, children and
adults, today reported fiscal results for the first six months and second
quarter ended September 30, 2006. The Company's strong operational and
financial performance is detailed in its Form 10-Q, which has been filed with
the US Securities and Exchange Commission.
Synutra International, Inc. (Synutra) Chairman and Chief Executive Officer
Liang Zhang commented, "We are proud to report another quarter of increased
revenue, robust sales and strong profit growth. Our performance in the second
quarter reflected the success of our premium brand, led by our Super series,
which continued to gain momentum in the fastest growing segment of China's
infant formula market."
"Sales increased year-on-year by $17.8 million to $43.1 million for the
three months ended September 30, 2006, a 70.8% increase from the same period
in 2005. Net income surpassed our expectations, reaching $6.4 million, a 380%
increase over same three-month period in 2005. We continue to operate at a
gross margin of above 50%. Synutra's growth in China's high margin premium
infant formula market has been strong and steady; we remain committed to
improving our market position and building acceptance of our high-quality
products," said the Synutra chief executive officer.
Fiscal Second Quarter
Sales in the second quarter ended September 30, 2006 increased by
$17.8 million or 70.8% to $43.1 million as compared to $25.2 million for the
same three months in 2005. Gross profit was $24.1 million or 56% of sales for
the three-month period. Second quarter net income increased over the same
three-month period in 2005 by $5.1 million, or 380%, to $6.4 million. Synutra
earned $0.13 per share in the second quarter, up from $0.03 earned in the
prior year period.
Fiscal Six Months
Sales in the first six months ended September 30, 2006, increased by
$43.1 million or 101% to $85.7 million as compared to $42.6 million for the
same six months in 2005. Gross profit was $46.2 million or 53.8% of sales for
the first six months. Net income increased by $12.5 million to $15.6 million
from a net income of $3.1 million for the first six months of 2005. Earnings
per share were $0.31 versus $0.06 in the first six months of the prior fiscal
year.
Synutra 10-Q available on-line: http://www.synutra.com
Synutra announced on July 24, 2006 its intention to move trading of its
common stock from the OTC Bulletin Board to the NASDAQ Global Market (formerly
named the NASDAQ National Market), pending a review and approval of its
application by the NASDAQ Listing Qualifications Panel. The stock is expected
to continue trading under the present symbol "SYUT" at the completion of the
transfer.
About Synutra International, Inc.
Synutra operates six subsidiaries developing, producing, distributing and
selling dairy-based nutritional products across the People's Republic of
China. It offers its products for infants, children, adults and pregnant women
and nursing mothers under the brand series of "Super," "U-Smart" and
"U-Strong." The Group's extensive sales network covers 24 provinces, 227
cities and more than 800 counties throughout China. For more information,
please contact Weiguo Zhang of Synutra, Inc. (301 840 3888,
wzhang@synutra.com), Brian Rafferty of Taylor Rafferty (212 889 4350,
synutra@taylor-rafferty.com) or visit: http://www.synutra.com.
The information contained herein includes forward-looking statements.
These statements relate to future events or to our future financial
performance, and involve known and unknown risks, uncertainties and other
factors that may cause our actual results, levels of activity, performance, or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these forward-
looking statements. You should not place undue reliance on forward-looking
statements since they involve known and unknown risks, uncertainties and other
factors which are, in some cases, beyond our control and which could, and
likely will, materially affect actual results, levels of activity, performance
or achievements. Any forward-looking statement reflects our current views
with respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results of
operations, growth strategy and liquidity. We assume no obligation to
publicly update or revise these forward-looking statements for any reason, or
to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information
becomes available in the future. The safe harbor for forward-looking
statements contained in the Securities Litigation Reform Act of 1995 protects
companies from liability for their forward looking statements if they comply
with the requirements of the Act.