August 17, 2007
China's AgFeed triples profit
Revenue rose 510 percent while gross profits tripled in what was an astounding second quarter for AgFeed Industries, a manufacturer of premix for China's animal nutrition industry.
Net revenue for the quarter increased to approximately US$6.89 million, up approximately 229 percent, and gross profit increased approximately US$2 million or 151 percent compared to the same period in 2006.
The Guangxi Huijie subsidiary, acquired in December of 2006, contributed approximately 27 percent of the Company's revenues and approximately 26 percent of the total volume of products sold during the period.
The company said the Airubao Series of products that the company launched earlier this year was very successful, contributing approximately US$5.3 million in sales.
Xiong Junhong, CEO of AgFeed said that given the favourable market environment in China which saw sharply higher pork prices, there has been continued market expansion and growth in the company's premium animal feed segment.
Rising consumer incomes across China are leading to higher demand for better and more meat products, Xiong said.
US-listed AgFeed currently has 120 franchise stores in China and 600 wholesalers.