November 14, 2008
AgFeed records 316-percent spike in Q3 results
AgFeed Industries, Inc., announced that its third-quarter revenue has surged 316 percent on-year to US$49.4 million.
Revenue from premix feed sales was US$12.4 million, up from US$11.9 million in the third quarter of 2007 and US$12.2 million in the second quarter of 2008.
Revenue from hog production was US$37 million in the third quarter of 2008, up from US$23.4 million in the prior quarter.
The increase in premix feed sales was due to expanded AgFeed retail distribution store sales, broadened commercial hog farm direct sales channels, coupled with the effects of two previously implemented price increases in their premix feed products.
The increase in revenue from hog sales was, in part, due to the successful integration of recently acquired producing hog farms. AgFeed sold more than 150,000 hogs during the quarter, up significantly from production in the prior quarter.
AgFeed reported premix feed related income from operations of US$2.6 million, compared to US$2.2 million in the corresponding quarter of 2007 and US$1.7 million from the previous quarter.
Strong premix feed earnings performance was driven by efficient cost management, increased economies of scale on raw material purchases, and long term annual supply agreements entered in early 2008 for key raw materials.
Reported hog sales related income from operations for AgFeed were US$6.9 million, up slightly from the prior quarter.