QINGDAO, China and ROCKVILLE, Md., June 30 /Xinhua-PRNewswire/ -- Synutra International, Inc. (SYUT) , one of China's leading suppliers of dairy-based nutritional products for infants, children and adults, reported results for the fourth quarter and full fiscal year ended March 31, 2006. The Group continued to see significant revenue growth across all of its major product lines. The strong operational and financial performance is detailed in the Company's Annual Report (Form 10-KSB), which has been filed with the US Securities and Exchange Commission.
Synutra International, Inc. (Synutra) Chairman and Chief Executive Officer Liang Zhang commented, "This was a landmark year for Synutra, both financially and operationally, and our record performance demonstrates our team's ability to execute a focused strategy for profitable growth. Over the year, we made a significant investment in advertising and promotion to build recognition of the advanced nutrition and high quality of our brands. This drove acceptance of our products, particularly the high-margin Super series premium products, and contributed to a more profitable sales mix.
"Additionally, we implemented an incentive program for our sales force, which helped to drive sales across all of our product lines. Sales for the full year grew 85% year over year and reached $103.2 million. Net income was $11.6 million and increased by 274% over the same period last year.
"Looking forward to the next fiscal year, we are expanding our operations and seeking additional distribution outlets to further enhance our revenue stream. As always, we will continue to focus on producing and distributing the highest quality product lines. We are confident that Synutra's continued strong execution and brand building initiatives will drive growth over our entire product line in 2007."
Fiscal Fourth Quarter
Sales for the fourth quarter ended March 31, 2006 increased by $13.4 million or 78% to $30.7 million, as compared to $17.3 million for the same period in 2005. Gross profit increased by 83% to $17.4 million for the fourth quarter ended March 31, 2006, which amounts to 56% of sales.
Fourth quarter net income decreased by 8.8 % to $4.2 million, compared to net income of $4.6 million from the same period in 2005. Synutra earned $0.10 per share for the fourth quarter of fiscal 2006, up from $0.09 earned in the prior year period.
Full Year Ended March 31 2006
Sales for the full year ended March 31, 2006 increased by $47.3 million or 85% to $103.2 million, as compared to $56 million for the same period in 2005. Gross profit was $56.6 million or 55% of sales for the full fiscal year. Full year net income increased by $8.5 million, or 274%, to $11.6 million from the same period in 2005. Synutra earned $0.23 per share for the full year 2006, up from $0.06 earned in the prior year period.
Synutra 10KSB available on-line: http://www.synutra.com
About Synutra International, Inc.
Synutra operates six subsidiaries developing, producing, distributing and selling dairy-based nutritional products across the People's Republic of China. It offers its products for infants, children, adults and pregnant women and nursing mothers under the brand series of "Super," "U-Smart" and "U-Strong." The Group's extensive sales network covers 24 provinces, 227 cities and more than 800 counties throughout China. For more information, please contact Weiguo Zhang of Synutra, Inc. (301 840 3888, [email protected]), Brian Rafferty of Taylor Rafferty (212 889 4350, [email protected]) or visit: http://www.synutra.com.
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