August 11, 2011

 

China Marine Food's Q2 profits tumble on weakened seafood demand
 

 

China Marine Food Group's net income slumped in the second quarter, weighed by reduced seafood consumption following Japan's March earthquake and the ensuing radiation scare.

 

The company said Monday (Aug 8) that for the quarter ended 30 June, net income was down 82.5% to US$1 million.

 

Net sales fell 19.9% to US$22.1 million, which the company attributed to a 30.8% "temporary drop" in seafood consumption in China stemming from the disaster in March. Monthly sales have stabilised from June and moderately improved as consumer confidence has returned, the company said.

 

Revenue from the company's Hi-Power algae-based energy drinks were up 10.7% to US$8.6 million.

 

However, China Marine said it did not expect seafood consumption to "fully recover" this year and cut its forecasts for full-year sales and profits.

 

The company still expects revenues to rise but at a slower rate. It now sees revenues growing 5.9% to US$130 million, compared to a forecast it made in March of over US$150 million.

 

China Marine now forecasts that consolidated adjusted net income will fall by 37% to US$14.8 million. In March, it predicted a 16.1% increase to US$27.3 million.

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