Revenue of $10.1M, an increase of 14% compared to the first quarter of fiscal 2009
Net income of $2.3M, an increase of 21% compared to the first quarter of fiscal 2009
HARBIN, China, Feb. 12 /PRNewswire-Asia/ -- Rodobo International, Inc. (OTC Bulletin Board: RDBO), a leading manufacturer and distributor of high quality milk formula products for infants, children, the middle-aged and the elderly in China, today announced its financial results for the first quarter of its fiscal year 2010.
Results for the Three Months Ended December 31, 2009
Revenue for the first quarter ended December 31, 2009 was $10.1 million, an increase of 14% compared to the same period ended December 31, 2008. This increase was primarily driven by volume growth, with the average selling price remaining flat over both periods. We continued our efforts to develop distribution networks and expand the market areas in the 9 provinces and Beijing where we currently sell products. The new baby/infant formula product series marketed under the brand name of "Peer" which was launched in July 2009 attributed approximately $3.8 million to the first quarter.
Gross profit for the first quarter ended December 31, 2009 was $5.3 million, an increase of 18% compared to the same period ended December 31, 2008. The overall gross margin increased from 51% in the first quarter ended December 31, 2008 to 53% in the first quarter ended December 31, 2009. The improvement of our gross margin was mainly driven by the increase in sales of high-margin new baby/infant formula which is marketed under the brand name of "Peer", which had a gross margin of 70% and accounted for approximately 38% of total sales in the first quarter ended December 31, 2009.
Due to the increase in revenue and improvement in gross profit margin, offsetting by the increase in operating expenses, operating income increased 2% to $2.0 million in the first quarter ended December 31, 2009, compared to the same period ended December 31, 2008.
Net income grew 21% to $2.3 million in the first quarter ended December 31, 2009 compared with $1.9 million in the first quarter ended December 31, 2008. This increase in net income was mainly attributable to the growth in revenue, partially offset by an increase in cost of goods sold and operating expenses. This increase in net income was also attributable to a $0.3 million non-recurring subsidiary income from government support funds.
Company and Market Outlook
"During the first quarter of our fiscal year 2010, Rodobo International had experienced a healthy growth in revenues and earnings," stated Mr. Yanbin Wang, Chairman and CEO of Rodobo, "We continue to focus on providing high quality premium products to our customers. Our new organic dairy farm with 1,140 cows and 15 company-owned raw milk collection stations currently provides 65 tons of high quality fresh milk per day. We believe that our recent acquisition of three Chinese dairy companies will expand our production capacity from 200 tons to 1,200 tons per day and increase our distribution channels. We expect exciting further growth in the coming quarters of this year."
About Rodobo International, Inc.:
Rodobo International, Inc. is one of the leading non-state-owned dairy companies in China. Through its wholly-owned operating subsidiaries and variable interest entity, Rodobo International, Inc. is a producer and distributor of high-quality formula milk powder products for infants, children, the middle-aged and the elderly in China. The Company's products are sold under the brand names "Rodobo", "Healif" and "Peer" and are produced in cutting edge facilities under best quality control systems and in compliance with high industry standards.
Cautionary Note Regarding Forward Looking Statements
This press release and the statements of representatives of Rodobo International, Inc., and its consolidated subsidiaries (collectively, the "Company") related thereto contain, or may contain, among other things, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact included herein are "forward-looking statements," including statements regarding: the impact of the recent acquisitions on the business and operations of the Company; the ability of the Company to achieve its commercial objectives including increase growth, revenues, earnings, and production capacity; the business strategy, plans and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are subject to significant involve known and unknown risks and uncertainties ad are often identified by the use of forward-looking terminology such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. The Company undertakes no duty to update these forward-looking statements except as required by law.
For more information, please contact:
Xiuzhen Qiao
Rodobo International, Inc.
Tel: +86-451-8226-5922
Email: qiaozhen1973@163.com
Table to follow:
RODOBO INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
(UNAUDITED)
For The Three Months Ended
December 31
2009 2008
Net sales $10,075,445 $8,860,825
Cost of goods sold 4,780,299 4,357,117
Gross profit 5,295,146 4,503,708
Operating expenses:
Distribution expenses 2,586,173 2,119,352
General and administrative expenses 607,215 388,682
Depreciation and amortization expenses 115,665 42,450
Total operating expenses 3,309,053 2,550,484
Operating income 1,986,094 1,953,224
Subsidy income 273,897 --
Other income 2,390 (80,618)
Income before income taxes 2,262,381 1,872,604
Provision for income taxes -- --
Net income $2,262,381 $1,872,604
Other comprehensive income:
Foreign currency translation
adjustment (2,184) (39,780)
Comprehensive income $2,260,197 $1,832,824
RODOBO INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, September 30,
2009 2009
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $2,876,418 $1,640,259
Accounts receivable 3,533,430 2,015,044
Advances to employees 11,978 5,602
Inventories 562,560 1,576,723
Prepaid expenses 226,542 19,040
Total current assets 7,210,929 5,256,668
Property, plant and equipment, net
of accumulated depreciation 1,985,487 738,537
Biological assets, net 2,439,713 2,499,625
Other assets:
Investment advances 410,135 --
Deposits on biological assets 988,718 988,818
Deposits on land and equipment 9,520,991 9,961,429
Intangible assets, net 4,462,142 4,526,117
Total other assets 15,381,986 15,476,364
Total Assets $27,018,115 $23,971,194
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,518,958 $1,246,818
Other payable 290,149 50,293
Accrued expenses 70,248 175,456
Due to related parties 1,185,054 1,185,062
Total current liabilities 3,064,409 2,657,629
Stockholders' equity
Common stock, $0.0001 par value,
200,000,000 shares authorized,
16,292,614 and 16,216,717 shares
issued and outstanding
as of December 31, 2009 and
September 30, 2009, respectively 1,629 1,622
Additional paid in capital 4,735,022 4,355,085
Additional paid in capital -
warrants 971,788 971,788
Subscription receivable (50,000) (50,000)
Retained earnings 17,452,241 15,189,860
Accumulated other comprehensive
income 843,027 845,210
Total stockholders' equity 23,953,706 21,313,565
Total Liabilities and
Stockholders' Equity $27,018,115 $23,971,194