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Rodobo International, Inc. Reports Record Revenues and Earnings for Q1 2009

Rodobo International, Inc.
2009-02-19 18:07 1482

Revenues of $8.9M, up 120% compared to Q1 2008

Net income of $1.9M, up 214% compared to Q1 2008

HARBIN, China, Feb. 19 /PRNewswire-Asia/ -- Rodobo International, Inc. (OTC Bulletin Board: RDBO), one of the leading independent dairy companies in China, reported financial results for the first quarter ending December 31 2008.

Record financial results include:

-- Revenue increased 120% year over year to $8.9 million from $4 million

in Q1 2008.

-- Gross profit increased 269% year over year to $4.5 million from

$1.2 million in Q1 2008.

-- Net income increased 214% year over year to $1.9 million from

$0.6 million in Q1 2008

Mr. Yanbin Wang, Chief Executive Officer Rodobo International, stated: "We are proud to report strong Q1 2009 results. We more than doubled our top line and almost quadrupled our gross profit. We present an impressive net income growth of 214% and our cash balance increased by $1.3 million to $2 million. The strong growth indicates our increased market share and the popularity of our products among customers. The launch of our new high margin product line "Healthy Elderly" in October 2008, has already attributed to 24% of sales growth in Q1 2009 compared to Q1 2008."

"Healthy Elderly" is a product series based on formula specifically developed by China Nutrition Society for the middle-aged and elderly. We expect our new and advanced dairy farms to start operations in July 2009 and this will give us a tremendous competitive advantage in terms of high quality raw milk resources. During the quarter we continued to develop distribution networks and expanded the market areas in the six provinces in which we currently operate. We expect 2009 to be a year of continued growth".

Revenue for the first quarter ending 31 December 2009 was $8.9 million, an increase of 120% compared to Q1 2008. The growth was primarily driven by higher volume sales and was also attributable to the launch of the new product line "Healthy Elderly". Sales of "Healthy Elderly" were approximately

$1.9 million in the first quarter of fiscal 2009.

Sales of Whole Milk Powder Formula represented 22% of total sales in Q1 2009 compared to 53% in Q1 2008. Sales of Baby/Infant Formula represented 52% of total sales in Q1 2009 compared to 16% in Q1 2008. Sales of "Healthy Elderly" product line represented 22% of total sales.

Gross profit for the first quarter 2009 was $4.5 million, up 269% compared to Q1 2008. The overall gross margin improved from 30.2% in Q1 2008 to 50.8% in Q1 2009. The improvement in gross margin was mainly driven by the shift from low-margin products: Whole Milk Powder Formula to high-margin products: Baby/Infant Formula, "Healthy Elderly".

Operating income in the first three months ended December 31, 2008 was $1.9 million, increase of 292% compared to the same period last year.

Net income was $1.9 million, or $1.30 per basic and diluted share in Q1 2009, up 214% from $0.6 million or $0.61 per basic and diluted share in Q1 2008. The significant improvement in net profit was mainly attributable to the increase in sales and higher margin product mix.

About Rodobo International, Inc.:

Rodobo International is one of the leading independent dairy companies in China. Through its wholly-owned operating subsidiary, Rodobo International, Inc. is a producer and distributor of high-quality formula milk powder products for infants, children, pregnant women, nursing mothers, middle aged and the elderly in the People’s Republic of China. The Company’s products are sold under the brand name "Rodobo" and are produced in cutting edge facilities using the highest industry standards and control systems to ensure the best quality products.

Safe Harbor Statement

This press release contains forward-looking statements. Whenever we use words such as "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions, we are making forward-looking statements. Forward-looking statements include statements regarding our goals, beliefs, future growth strategies, objectives, plans or current expectations. For example, when we say that we expect our new and advanced dairy farms to start operations in July 2009 and this will give us a tremendous competitive advantage in terms of high quality raw milk resources or that we expect 2009 to be a year of continued growth,, we are using a forward looking statement. These forward-looking statements are based on the current expectations of the management of Rodobo only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: failure to obtain required regulatory approvals; risks associated with the effect of changing economic conditions and/or regulatory environment in the People’s Republic of China; variations in cash flow; reliance on collaborative partners and on new product development; variations in new product development; risks associated with rapid technological change and the potential of introduced or undetected flaws and defects in products; changes in technology and market requirements; loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of Rodobo to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, Rodobo undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting Rodobo, reference is made to Part I, Item 1A, "Risk Factors" of Rodobo’s Annual Report on Form 10-K for the fiscal year ended September 30, 2008 and to other reports filed from time to time by Rodobo with the Securities and Exchange Commission.

For more information, please contact:

Miri Segal

MS-IR LLC

Tel: +1-917-607-8654

Email: msegal@ms-ir.com

Xiuzhen Qiao

Tel: +86-451-8226-5922

Email: qiaozhen1973@163.com

Source: Rodobo International, Inc.
Keywords: Agriculture
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