Revenue and net income expected to increase at least 25% in fiscal 2010
DAQING, Heilongjiang, China, Nov. 19 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced revenue and net income guidance for fiscal year 2010 ("FY 2010") and fiscal year 2011 ("FY 2011"), ended March 31, 2010 and March 31, 2011, respectively.
China Nutrifruit expects revenue for FY 2010 to be in the range of $72-$76 million, which represents a 28%-35% increase over revenue of $56.4 million reported in fiscal year 2009. The Company expects FY 2010 net income to be in the range of $18-$19 million, up 28%-35% from adjusted net income of $14.0 million for fiscal year 2009, which excludes non-cash stock compensation expense of $9.5 million recorded in the fourth quarter of 2009. Projected revenue for fiscal year 2011 is expected to be approximately $90-$95 million, and projected net income is expected to be approximately $22-$23 million. These estimates are based on the Company's current production capacity and the addition of two new production lines, glazed fruit and concentrate pulp, to be added in the third and fourth quarter of fiscal year 2010, respectively.
"The rapidly growing consumer demand for specialty fruit based products and rising per capita juice consumption are the key growth drivers for our revenue growth in FY 2010 and FY 2011. With the proceeds from our recent financing, we plan to expand our production capacity by adding a newly built glazed fruit production line and acquire a concentrate pulp production line, which will boost our overall production capacity enabling market expansion and increased penetration," commented Mr. Jinglin Shi, CEO of China Nutrifruit. "Due to the absence of close competitors in our niche market and our efforts to build a well established supply and distribution network, we expect to maintain healthy profit margins. We are confident in out ability to meet or exceed our guidance for FY 2010 and FY 2011."
About China Nutrifruit Group Limited
Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network through 70 distributors in China. For more information, please visit http://www.chinanutrifruit.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act""). Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our plan for production capacity expansion, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Current Report on Form 10-Q filed on September 30, 2009, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
For more information, please contact:
Company Contact:
Mr. Colman Cheng, Chief Financial Officer
China Nutrifruit Group Limited
Tel: +852-9039-8111
Email: zsj@longheda.net
Web: http://www.chinanutrifruit.com
Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com