Singapore, May 12, 2008 – Main board-listed Celestial NutriFoods Limited (“Celestial” or the “Group”), a leading soybean protein-based food & beverage products manufacturer in the PRC, announced today a set of sterling results for the first quarter ended March 31, 2008 (“1QFY2008”).
The Group recorded a 52.3% surge in sales to RMB605.7 million in 1QFY2008, up from RMB397.7 million in the quarter ended March 31, 2007 (“1QFY2007”). On the back of strong sales, net profit attributable to equity holders increased 53.7% to RMB130.2 million in 1QFY2008, up from RMB84.7 million in 1QFY2007.
In spite of a 60.0% increase in its cost of sales mainly due to rising soybean prices and increased sales volume, the Group’s gross profit grew strongly by 41.2% to RMB229.2 million - due to its ability to defend its margins by means of raising selling prices, improving production efficiency, and working with distributors to focus on promoting higher-margin products and to strengthen its market position.
Said Executive Chairman and CEO of Celestial, Mr. Ming Dequan (明德泉), “Despite the tremendous cost pressures posed by the increase in raw material prices in the first quarter, we have continued to deliver excellent results for our shareholders. Notwithstanding the increase in our average selling prices, sales volume have continued to grow, reflecting our leading market position and strong brand equity. Our ability to deliver a set of sterling results in spite of the challenging operating environment is a reflection of our strong fundamentals and sound business strategy.”
Basic earnings per share of the Group improved from RMB0.13 in 1QFY2007 to RMB0.20 in 1QFY2008, with net asset value per share increased from RMB2.75 at December 31, 2007 to RMB2.96 at March 31, 2008.
