March 4, 2008

 

Zagro achieves double digit growth in 2007

 

Press Release
 

 

Life sciences specialist and SGX Mainboard-listed Zagro Asia Limited (''Zagro'') announced its net profit to shareholders for year FY2007 surged by 37 percent at S$ 5.8 million backed by revenue growth of 13 percent at S$ 109.7 million.

 

Mr Poh Beng Swee, Chairman and CEO of Zagro Asia said, ''We continue to benefit from the buoyant agri-sector that has enjoyed healthy prices for suppliers across the entire value chain. Both our crop care and animal health business segments saw healthy revenue growth in line with this upward trend, particularly towards the year end''.

 

''The higher prices were a result of raw materials price hike due to supply shortages, this was compounded by escalating demand for agri-related products. We expect this situation, termed as'agflation' or agricultural price inflation, to continue over the next 12 months,'' Mr Poh added.

 

Positive cash flow of S$ 11.6 million generated from operations was used to finance higher working capital in view of higher sales and stockholding.

 

Going forward, Zagro expects to build on its current performance from both its expanding distribution channels across 70 countries and its growing repertoire of diversified animal health and crop care products.

 

Zagro will also continue to pursue acquisitions. Mr Poh said, ''Constant restructuring in the agricultural sector will present opportunities for the Group to strengthen its global footprint.''

 

Zagro is optimistic to continue its double digit growth in 2008 especially with the signing of a Sales and Purchase agreement with BASF for the Taiwan Animal Nutrition business last December 2007.

 

This provides Zagro a valuable springboard into other Asian markets as well as offer significant cross-selling opportunities for its products and services.

 

About Zagro Asia Limited

 

Listed on the Singapore Stock Exchange since 1996, the Zagro Group is the leading Asian manufacturer and distributor of healthcare products for livestock, poultry, aquatic animals and crops.

 

The Group is engaged in the manufacture and distribution of nutrition and protection products for animals and crops. It also distributes pharmaceutical raw materials for human healthcare and specialty chemicals for the manufacturing industry as well as provides laboratory services for analyses of nutrients and active

ingredients for products. It is actively involved in end-user marketing and distribution across many regions worldwide.