November 19, 2009

Skystar reports sharp growth in Q3 results

China-based Skystar Bio-Pharmaceutical Company had enjoyed a good third quarter as revenues, gross margin and net incomes all marked a significant growth.

Skystar earned a record quarterly revenue of US$12.78 million, up 27.1 percent on-year. Gross margin improved 52.2 percent from 51.6 percent in the third quarter of 2008.

Net income amounted to US$5.35 million, compared with US$3.47 million in the same period last year.

Adjusted net income increased 22.7 percent to US$4.25 million, compared with US$3.47 million in the third quarter of 2008.

The third quarter results reflect improved sales across the company's product lines, said Skystar chairman and CEO Lu Weibing. 

Skystar is on track with its expansion initiatives to increase its vaccine and micro-organism production capacity by the end of 2009, he said.

With plans to begin production late in the fourth quarter, Skystar expects to increase vaccine revenue to US$14 million with 60-70 percent margins and increase micro-organism revenue by US$2.7 million with gross margins of 70 percent by 2010, according to Lu.

China-based Skystar Bio-pharmaceutical Company manufactures and distributes vaccines and medicines for poultry, livestock and domestic pets. Skystar has over 173 products in its current product line and has over 50 more products in development.