omniture

Synutra Reports 380% Increase in Net Income for the Second Quarter Ended September 30, 2006

Synutra International, Inc.
2006-11-15 12:28 1044

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.

Source: Synutra International, Inc.
Keywords: Machinery
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