China-Biotics has reported an increase in net sales during the first quarter of 2010 fiscal year by 35.5% to $15.4m, from $11.4m a year ago. Gross profit for the quarter increased 34.5% to $10.9m, from $8.1m in the same period the prior year. Gross margin was 70.8% in the first quarter, as compared to 71.3% in the year-ago period.
Net income for the first quarter of fiscal year 2010 was $5.8m, or $0.34 per basic and diluted share, an increase of 78.2% from $3.2m, or $0.19 per basic and diluted share, in the same quarter of fiscal 2009.
Jinan Song, chairman and chief executive officer of China-Biotics, said: We continued to deliver solid year-over-year growth in the top and bottom lines during the first quarter, while improving operating margin significantly as we concentrated on expanding the bulk additives business.
As we prepared for the fiscal third quarter launch of commercial production in our new manufacturing facility, we continued to balance capacity toward commercial customers, temporarily slowing our Shining retail outlet expansion. The addition of Dabeinong Group, a large poultry feed producer, further strengthened our pipeline of bulk additives customers, which will aid in the ramp-up of the new facility this quarter.
We look forward with anticipation to the remainder of fiscal 2010. Our new manufacturing facility remains on track to begin trial production in the second quarter of fiscal 2010, as previously announced, and our pipeline of potential new bulk additives customers continues to be strong. As the new capacity comes online, we will be able to resume our Shining retail outlet expansion later in the fiscal year. We are already directing our attention to the second phase of the capacity expansion, which we expect to begin by December 31, 2009. Although global economic growth remains suppressed, demand for our bulk additive products has been significant. This should result in revenue growth of at least 50% during the 2010 fiscal year,” added Mr. Song.