March 26, 2008

China's Bright Dairy reports 32.6 per cent rise in net profits for 2007

In its filing to the Shanghai Stock Exchange yesterday (Mar 25), Bright Dairy and Food Company announced a 32.6-percent rise in net profits to RMB213 million for financial year ending Dec 31, 2007. The company said that net profit was mainly boosted by a one-off compensation payment from Danone.

Bright Dairy's revenue was up 10.25 per cent on-year to RMB8.2 billion, with dairy product sales contributing RMB6.4 billion. However, net profit from dairy product sales was down by 82 per cent on-year to RMB38.4 million.

The Shanghai-based company cited increased cost incurred on advertising, distribution and raw material as factors that had impacted on earnings from its core business in 2007. The company expects a challenging year ahead in 2008.

RMB1=US$0.1420 (Mar 26)