Fiscal year EPS increased by 121% to $0.51 per share
QINGDAO, PRC and ROCKVILLE, Md., June 29 /PRNewswire-FirstCall/ -- Synutra International, Inc. (Nasdaq: SYUT), one of China's leading manufacturers of dairy-based nutritional products for infants, children and adults, today reported results for the fourth quarter and fiscal year ended March 31, 2007. The Company's strong operational and financial performance is detailed in the Company's Annual Report (Form 10-K), which has been filed with the US Securities and Exchange Commission.
Synutra International, Inc. (Synutra) Chairman and Chief Executive Officer Liang Zhang commented, "This fiscal year was a landmark for Synutra on all fronts. In addition to our continued strategic and operational progress, we were proud to transfer our listing from the OTC Bulletin Board to the Nasdaq Global Market on April 12, 2007.
"During the year, we adopted an integrated sales and marketing approach that brought together brand-building, advertising and in-store promotional initiatives which drove significant growth in the newly-launched premium infant formula products. These new products will allow us to continue to capture market share in the fast-growing, high-end segment of the infant formula market in China. Substantial adjustments were made to our entire product portfolio, for both children and adults, by upgrading product lines, developing new pricing tactics, and introducing new products and line extensions to respond to market needs. Additionally, Synutra nearly doubled its production capacity to meet its growing market demand with the commission of a modern spray-drying facility in Zhangjiakou, Hebei province. The Company also acquired new dairy processing assets in Inner Mongolia for both milk powder operations and for other dairy-protein products.
"Sales for the full year increased by $86.7 million, or 65.3%, to $219.4 million. Gross profit was $109.8 million, or 50% of sales, compared to $57.2 million for the same period the previous year. Net income was $25.7 million and increased 133% over the same period last year. Our strong performance was a direct result of an increase in both the product volumes and the average sales price during the year, due to implementation of targeted sales incentive programs and robust sales in the higher margin premium line products.
"We are very optimistic about Synutra's prospects in the upcoming fiscal year. Our performance this year continues to demonstrate our focus on growth, profitability, brand building initiatives and as always, producing and distributing the highest quality products."
Fiscal Fourth Quarter
Sales in the fourth quarter ended March 31, 2007 increased by $29.9 million, or 79.7%, to $67.5 million, compared to $37.5 million for the same three months in 2006. Gross profit increased by 101.9% to $35.0 million in the fourth quarter ended March 31, 2007, which amounts to 51.8% of sales. Fourth quarter net income increased by 40.3% to $5.8 million, compared to net income of $4.1 million from the same period in 2006. Synutra earned $0.12 per share in the fourth quarter of fiscal 2007, up from $0.08 earned in the prior year period.
Full Year Ended March 31, 2007
Sales for the full year ended March 31, 2007 increased by $86.7 million, or 65.3%, to $219.4 million, compared to $132.6 million for the same period in 2006. Gross profit was $109.8 million, or 50% of sales, for the full fiscal year. Full year net income increased by $14.6 million, or 133%, to $25.7 million from the same period in 2006. Synutra earned $0.51 per share for the full fiscal year, or a 121% increase from $0.23 earned in the prior year period.
Synutra 10-K is available on-line: http://www.synutra.com
About Synutra International, Inc.
Synutra operates eight 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, 264 cities and more than 1320 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.
