China Nutrifruit Grp. Limited【CNGL】株式ニュース

China Nutrifruit Group Limited Announces First Quarter Fiscal Year 2012 Results
Date : 08/15/2011 @ 6:30AM
Source : PR Newswire
Stock(CNGL)
Quote : 1.8 0.09 (5.26%) @ 1:03PM

China Nutrifruit Group Limited Announces First Quarter Fiscal Year 2012 Results
print
China Nutrifruit Grp. Limited Common Stock (AMEX:CNGL)
Intraday Stock Chart

Today : Monday 15 August 2011
Click Here for more China Nutrifruit Grp. Limited Common Stock Charts.

China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced its financial results for the first quarter fiscal year 2012, ended June 30, 2011.

First Quarter Fiscal Year 2012 Highlights and Recent Events

Net sales increased 6.9% year-over-year to $10.3 million
Gross profit increased 16.4% year-over-year to $4.8 million, with gross margin of 46.6%
Operating earnings rose 11.9% year-over-year to $2.7 million, with operating margin of 26.4%
Net income increased 0.4% year-over-year to $1.8 million, or $0.04 per diluted share
In June 2011, the Company filed an application with the SEC to withdraw its registration statement on Form S-1 for the proposed Taiwan Depositary Receipt offering and withdraw its application for listing on the Taiwan Stock Exchange

"Historically, we experience modest growth in net sales and profitability in our first fiscal quarter as we primarily engage in selling remaining inventory from the prior year production season. At the end of the first quarter of fiscal 2012, we sold through most of our inventory position. During the quarter, our newly introduced seabuckthorn and blackcurrant glazed fruit products continued to benefit from strong market demand and as a result, we recorded a 6.9% year-over-year increase in net sales, demonstrating our strong capability in diversifying our product portfolio," commented Mr. Yu Changjun, Chairman and CEO of China Nutrifruit. "On the operational level, due to our continued efforts to implement cost control measures, we recorded 3.8 percentage points year-over-year growth in our gross margin. Due to our solid market position, coupled with our product diversification and capacity expansion initiatives, we expect to achieve strong revenue and net income growth in fiscal year 2012," added Mr. Yu.

First Quarter Fiscal Year 2012 Results

Net sales for the first quarter of fiscal year 2012 increased 6.9% to $10.3 million, from $9.6 million in the same quarter of fiscal 2011. Sales growth during the quarter was primarily due to increased sales volume of glazed fruit products. The Company's recently introduced seabuckthorn and blackcurrant glazed fruit and concentrate juice products accounted for approximately 19.1% of the total sales during the quarter.

In the first quarter of fiscal year 2012, net sales from concentrated juice products, which accounted for 50.5% of total net sales, were $5.2 million, up slightly from $5.0 million, or 52.3% of total net sales, in the same quarter of fiscal year 2011. Net sales from glazed fruit products reached $3.8 million, contributing 37.2% of net sales, up 119.2% as compared to $1.7 million, or 18.2% of total net sales in the same period of prior year. Sales of concentrate pulp products were $1.0 million, or 9.7% of total net sales, down 56.5% compared to $2.3 million in the same period in fiscal year 2011. Net sales of concentrate pulp decreased as the Company ceased cooperation with one of two OEM factories in this quarter due to changes in the factory's business operations. In fiscal year 2012, the Company made a strategic decision to replace this relationship with another OEM concentrate pulp manufacturer that consistently meets the Company's stringent quality requirements. Sales from nectar were $0.3 million, or 2.6% of total net sales, down 52.3% from $0.6 million, or 5.8% of total net sales in the first quarter of fiscal 2011.

Gross profit for the first quarter of fiscal year 2012 increased 16.4% to $4.8 million from $4.1 million for the same period a year ago. Gross margin was 46.6% for the first quarter of fiscal year 2012, up from 42.8% in the year ago period. The increase in gross margin was mainly due to significant increase in sales volume of higher margin glazed fruit products. Gross margin on glazed fruit products rose to 54.9% from 49.8% a year ago. In contrast, gross margin of concentrate pulp products, nectar and concentrate juice were 23.6%, 67.3% and 43.8% compared to 25.5%, 69.3% and 45.3%, respectively, in the first quarter of fiscal year 2011.

In the first quarter of fiscal year 2012, selling, general, and administrative expenses were $2.1 million, up 22.8% from the same period last fiscal year. Selling expenses were $0.4 million, or 4.0% of net sales, down 29.8% compared to $0.6 million, or 6.1% of net sales, in the first quarter of fiscal year 2011. As a percentage of net sales, decline in selling expenses was mainly due to the Company's well established relationships with existing distributors who continued to place repeat orders with higher volume, resulting in lower sales related travel expenses.

General and administrative expenses were $1.7 million, or 16.2% of net sales, up 50.7% from $1.1 million, or 11.5% of net sales a year ago. The increase in general and administrative expenses was mainly attributable to increase in professional expenses related to the Company's proposed Taiwan Deposit Receipt offering in Taiwan which was withdrawn in June 2011. In addition, the increase in payroll expenses also contributed to the increase in general and administrative expenses for the quarter.

Operating earnings in the first quarter of fiscal year 2012 were $2.7 million compared to $2.4 million in the comparable period last fiscal year. Operating margin for the quarter improved to 26.4%, up from 25.2 % a year ago.

Provision for income taxes for the quarter was $0.9 million compared to $0.7 million a year ago. The Company's effective tax rate was 33.9% for the first quarter fiscal year 2012 compared to 27.1% for the same period last year.

Net income in the first quarter of fiscal year 2012 was $1.8 million, or $0.04 per diluted share, up slightly compared to the same period last fiscal year. The calculation of diluted earnings per share for the first quarter of fiscal 2011 is based on 36.9 million weighted average shares outstanding compared to 36.7 million in the same quarter of fiscal 2011.

Financial Condition

As of June 30, 2011, China Nutrifruit had $57.2 million in cash and equivalents, $10.8 million in current liabilities with no long-term debt and working capital of $53.1 million. Shareholders' equity was $96.4 million as of June 30, 2011, up from $93.3 million as of March 31, 2011.

The Company generated $11.5 million net cash from operating activities, compared to cash used in operating activities of $5.8 million in the same period fiscal year 2011. The Company used $0.6 million and $4.1 in prepayment for purchase of property and equipment for the upgrade of glazed fruit and concentrate juice production lines and the construction of the Company's new concentrate paste facility in Zhaoyuan respectively, which is scheduled to begin operations in late August 2011.

Subsequent Events

On July 25, 2011, the Company commenced the fiscal year 2012 production season.
In July 2011, the Company completed technological upgrades to glazed fruit production lines in Daqing and completed installation of additional processing equipment at concentrate juice production lines in Mudanjiang, increasing annual concentrate juice production capacity by 50% to reach 9,000 tons.
In August 2011, the Company relocated its headquarters to Daqing Hi-Tech Industrial Development Zone, Daqing, Heilongjiang, China.

Business Outlook

"We are pleased to begin fiscal year 2012 with a strong cash flow position to support our production season and numerous new product development and capacity expansion initiatives. During our production season this year, we expect to introduce several new products, including fruit and vegetable powder products, concentrate paste products, golden berry dried fruits, and cherry tomato glazed fruits products. In addition, with our recent technological upgrades to our glazed fruit production lines in Daqing and installation of additional processing equipment at concentrate juice production lines in Mudanjiang, we have successfully increased our annual concentrate juice production capacity by 50% to reach 9,000 tons. We also expect to benefit from increased operational efficiency following these upgrades," said Mr. Yu. "As we are currently in the process of engaging another OEM factory, a process that may take several months, we expect concentrate pulp products to contribute less to our overall sales for the time being."

"In light of these initiatives and updates, we remain confident in our ability to achieve our financial guidance for fiscal year 2012, with revenue of approximately $110 million to $113 million and net income of approximately $29 million to $30 million," concluded Mr. Yu.

Conference Call Information

Management will conduct a conference call at 9:00 a.m. Eastern Time on Monday, August 15, 2011, to discuss financial results for the first quarter fiscal year 2012, ended June 30, 2011.

To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (866) 759-2078. International callers should dial +1-706-643-0585. The conference ID number for the call is 89319601.

If you are unable to participate in the call at this time, a replay will be available for fourteen days starting from Monday, August 15, 2011 at 12:00 noon Eastern Time. To access the replay, dial 855-859-2056. International callers should dial +1-404-537-3406. The conference ID number for the replay is 89319601.

About China Nutrifruit Group Limited

Through its subsidiaries Daqing Longheda Food Company Limited and Daqing Senyang Fruit and Vegetable Food Technology Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. Its processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 18 provinces in China. For more information, please visit http://www.chinanutrifruit.com.

China Nutrifruit Group Limited Announces Third Quarter of Fiscal 2010 Results

- Revenue increased 28% year-over-year to $17.8 million

- Net income increased 45% to $4.6 million

- Affirms FY 2010 and FY 2011 Guidance

DAQING, China, Feb. 5 /PRNewswire-Asia-FirstCall/ --

China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today reported financial results for the third fiscal quarter ended December 31, 2009.

Third Quarter Fiscal Year ("FY") 2010 Highlights

-- Net sales increased 28.4% year-over-year to $17.8 million

-- Gross profit increased 34.8% year-over-year to $8.1 million, with gross

margin of 45.7%

-- Operating earnings increased 40.6% year-over-year to $6.2 million, with

operating margin of 34.9%

-- Net income increased 44.7% year-over-year to $4.6 million, or $0.11 per

diluted share

-- Successfully raised aggregate gross proceeds of approximately $13.3

million in private placement financing

-- Began production of new glazed fruit production line at the Company's

Daqing facility in Heilongjiang Province, China

"China Nutrifruit had a strong third quarter with solid year-over-year growth in both revenue and net income. As planned, we successfully added a new glazed fruit production line during the quarter which will further boost sales of our rapidly growing glazed fruit products," commented Mr. Changjun Yu, Chairman of China Nutrifruit. "We experienced a healthy harvest with our facilities operating at a utilization rate in excess of 90%. Our new glazed fruit production line began production in December and will help us meet the growing market demand for our products."

Third Quarter FY 2010 Results

Net sales for the third quarter of FY 2010 increased 28.4% to $17.8 million, as compared to $13.9 million in the same quarter of fiscal 2009. The strong growth in sales was attributable to the increase in sales volume driven by rising market demand and growth in consumer spending. During the third quarter, net sales from concentrated juice products, which accounted for 47.2% of total net sales, were $8.4 million. Net sales from glazed fruit reached $5.4 million, contributing 30.1% of the net sales during the quarter compared to 6.1% in the prior year primarily due to increased sales of the Company's new blueberry glazed fruit product.

Gross profit for the third quarter of FY 2010 grew 34.8% to $8.1 million, from $6.0 million for the same period a year ago. Gross margin was 45.7% for the third quarter of FY 2010 compared to 43.5% in the third quarter of FY 2009. The increase in gross margin was mainly due to product mix changes resulting in increased sales of glazed fruit products which had a higher margin of 51.9%, compared with fruit concentrate and concentrate pulp products, which had gross margins of 44.4% and 28.3%, respectively, during the quarter.

In the third quarter of FY 2010, selling, general, and administrative expenses were $1.9 million, up 18.6% from $1.6 million in the same period last year. Selling expenses were $1.1 million, or 6.1% of net sales, compared to $0.9 million, or 6.8% of net sales, in the third quarter of FY 2009. Selling expenses as a percentage of net sales declined due to lower sales related travel expenses as the Company's established customer relationships resulted in a higher volume of repeat orders from existing customers. General and administrative ("G&A") expenses were $0.8 million, up 22.9% from $0.7 million a year ago. As a percentage of net sales, G&A expenses decreased to 4.6% compared to 4.8% in the third quarter of FY 2009.

Operating earnings in the third quarter of FY 2010 rose 40.6% to $6.2 million, from $4.4 million in the comparable period last year.

Provision for income taxes was $1.6 million compared to $1.1 million a year ago.

Net income in the third quarter of FY 2010 was $4.6 million, or $0.11 per diluted share, up 44.7% from $3.2 million, or $0.09 per diluted share a year ago. The calculation of diluted earnings per share for the third quarter of fiscal 2010 is based on 40.2 million shares compared to share count of 36.1 million in the third quarter of fiscal 2009.

Nine Months Results

For the nine months ended December 31, 2009, net sales were $46.5 million, up 28.4% from $36.2 million for the nine months ended December 31, 2009. Net sales from concentrated juice products increased 10.8% to $20.1 million from $18.1 million in the comparable period last year and accounted for 43.2% of total net sales. Net sales from glazed fruit grew 110.4% to $10.2 million from $4.8 million in the same period last year and accounted for 21.9% of net sales. Sales of concentrate pulp products increased 185.1% to $6.4 million, as compared to $2.2 million in the prior year, and accounted for 13.7% of total net sales.

Gross profit increased 26.6% to $21.8 million from $17.2 million a year ago. Gross margin was 46.8% in the first nine months of FY 2010 compared to 47.5% in the comparable period a year ago. Earnings from operations were $16.8 million, up 23.4% from $13.6 million last year. Net income for the nine months ended December 31, 2009 was $12.5 million, or $0.33 per diluted share, up 25.7% from $10.0 million, or $0.51 per diluted share, in the same period of FY 2009. The calculation of diluted earnings per share for the first nine months of FY 2010 is based on 37.5 million shares compared to share count of 19.5 million in the comparable period of fiscal 2009.

Financial Condition

As of December 31, 2009, China Nutrifruit had $19.1 million in cash and cash equivalents, $3.0 million in total liabilities with no long-term debt and working capital of $39.3 million. Shareholders' equity was $58.9 million as of December 31, 2009.

In first nine months of FY2010, the Company generated $5.7 million in cash flow
from operating activities due to net income, the collection of trade receivables offset by the increase in inventory during the production season.

Business Outlook

China Nutrifruit plans to construct a new fruit and vegetable powder manufacturing facility in Daqing, Heilongjiang Province with an annual production capacity of 10,000 tons at a total cost of approximately $19.1 million. The new facility is expected to begin production in September 2010 and will produce tomato, pumpkin and other popular fruit and vegetable powders that can be used as ingredients in a variety of food products. The Company expects the new line to contribute approximately $13 to $14 million in revenue for fiscal year 2011. In addition, China Nutrifruit is seeking to maximize utilization at its new automated glazed fruit production line.

The Company affirms previously issued fiscal 2010 and 2011 guidance. For FY 2010, the Company expects approximately $72.0 - $76.0 million in revenue and $18.5 million in net income, excluding non-cash stock compensation expenses. For FY 2011, the Company expects approximately $90-$95 million in revenue, and projected net income of approximately $22-$23 million.

"We expect strong consumer spending and an increasing demand for healthy products to continue to drive demand for specialty fruit and beverage products. We have received a great deal of interest and demand from both domestic and international distributors for fruit and vegetable powder products. This high growth segment complements our existing product lines and we plan to leverage our widespread network of suppliers and distributors to sell these products," said Mr. Yu. "We intend to enhance our position as a premium food processor by continuing to introduce new products and utilizing our strong distribution network, industry relationships, and production efficiency."

Conference Call Information

Management will conduct a conference call at 9:00 a.m. Eastern Time on Friday, February 5, 2010 to discuss its third fiscal quarter 2010 results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 877-380-4607. International callers should dial +1-702-928-6995. The conference ID number for the call is 53493754. If you are unable to participate in the call at this time, a replay will be available on Friday, February 5, 2010 at 11:00 a.m. Eastern Time, through Friday, February 19, 2010. To access the replay, dial 800-642-1687. International callers should dial +1-706-645-9291. The conference ID number for the replay is 53493754.

About China Nutrifruit Group Limited

Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 20 Provinces in China. For more information, please visit http://www.chinanutrifruit.com/ .