August 29, 2013
Sino Agro Food reports Q2 2013 revenue growth of 115%
Sino Agro Food, Inc. announced its financial results for the quarter ended June 30, 2013 with 115% rise in revenue to US$54,400,329 against US$25,348,287 on-year primarily due to the natural growth of revenue generated from the fishery, cattle farm, beef and the maturity of on-going divisional businesses.
The company's consolidated financial summary also reflected a gross profit increase of 43% to US$19,390,447 in the second quarter of 2013 against US$13,558,248 in the same period of 2012 primarily due to the corresponding increases in revenues from the company's fishery, cattle farm and beef operations. Quarterly revenue of US$54.4 million and earnings of US$14.3 million and US$0.13/share confirm the company's operations are on track to plan. In addition, the company realised a foreign currency translation gain of US$1.7 million in the second quarter.
Total stockholders' equity increased by US$20.1 million or 9% to US$239.2 million. The quarterly increase of US$0.16 in stockholder equity amounts to approximately 40% of the company's market capitalisation.
Solomon Lee, the company's CEO commented, "All of the company's divisions achieved strong on-year growth in the second quarter, integrating with one another to strengthen the company's strategic 'farm to plate' business and product concept. As such, we are on target to meet our stated 2013 revenue and earnings guidance."
Second quarter operational achievements highlighted below continue to signal fundamental organic growth, generating core sustainable value and adding a layer of corporate maturity and reliability, reinforced by all financial metrics moving positively.
Revenue from the fishery division increased by US$2,104,341 or 13.32% to US$17,904,106 for the three months ended June 30, 2013 compared to US$15,799,765 for the three months ended June 30, 2012. The increase was primarily due to our increased contract service income from fishery, wholesale centre one and prawn development contracts and sale of fish for the three months ended June 30, 2013 compared to consulting income and sale of fish for the three months ended June 30, 2012.
However, the gross profit of the fishery decreased from US$9,207,455 for the three months ended June 30, 2012 to US$4,130,711 (or -55.13%) for the three months ended June 30, 2013. The decrease was primarily due to part of the sales from Fishery Segment being reallocated to a new segment marked "Corporate and others." This amounted to US$3,086,909 of the decrease. The remaining decrease of US$1,989,835 (or US$0.017/share) was due primarily to the decrease in the sales prices of sleepy cod decreasing from US$27/kilogramme in the three months ended June 30, 2012 to US$15.3/kilogramme during the three months ended June 30, 2013. The company currently has five indoor fish or prawn farms either in operation or being constructed, or both.
Revenue from beef increased by US$5,157,917 or 237.68% to US$7,328,071 for the three months ended June 30, 2013 compared to US$2,170,154 for the three months ended June 30, 2012. The increase was primarily due to our increase of cattle sales.
Revenue from organic fertiliser increased by US$7,836,341 to US$9,618,307 for the three months ended June 30, 2013 compared to US$1,781,966 for the three months ended June 30, 2012. The increase was primarily due to the new production plants at Hunan Shenghua A (HAS) increasing its sales and production of fertiliser.
Revenue from the cattle farm increased by US$2,906,622 to US$6,421,161 for the three months ended June 30, 2013 compared to US$3,514,539 for the three months ended June 30, 2012, primarily due to the increase of cattle being grown in the Cattle Farm one.
Revenues for the three months ended June 30, 2013 increased by US$9,573,698 compared to US$0 for the three months ended June 30, 2012, the increase is due primarily to the increase of consulting and services being contracted and the increase of sales through trading of imported frozen and fresh seafood for the three months ended June 30 2013.
Cost of Goods Sold increased by US$23,219,843 or 196.94% to US$35,009,882 for the three months ended June 30, 2013 from US$11,790,039 for the three months ended June 30, 2012, primarily due to the company increasing its scale of operation from its fishery, plantation, cattle farm and beef operations for the three months ended June 30, 2013 as compared for the three months ended June 30, 2012
Sino Agro Food, Inc. is an integrated, diversified agricultural technology and organic food company focused on developing, producing and distributing agricultural products in the People's Republic of China. It intends to focus on meeting the increasing demand of China's rising middle class for gourmet and high-quality food items. Current lines of business include the manufacture and distribution of beef and lamb products, fish products, bioorganic fertiliser, stock feed and cash crops.