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news.The decrease in sales is largely due to lower sales units and lower averaging selling prices
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Shengtai Pharmaceutical, manufacturer and distributor of pharmaceutical grade glucose products in China, has posted its financial results with 7% decrease in the revenue in the fourth quarter and a 19% decrease for the fiscal year ended June 30, 2009.
The company posted revenue is $24.10m in the fourth quarter of 2009, a 7% decrease as compared with $25.84m in the same quarter of 2008. Net loss is $2.16m, a decrease of 169% as compared with net income of $3.14m a year ago. The fully diluted loss per share were $ 0.11, a 171% decrease as compared to earnings per share $ 0.16 in the same quarter a year ago.
Gross profit is $1.32m, a decrease of 75% as compared with $5.31m in the same period in 2008. Gross margin is 5.5% as compared to previous quarter’s 20.6%. Operating loss in fourth quarter is $1.58m, a decrease of 152% as compared with $3.04m operating income in the same quarter a year ago. The operating margin reached 6.56% as compared to 11.8%.
The fiscal year 2009 (FY09) net revenue decreased 19% to $73.32m from $90.87m in fiscal year 2008. The decrease in sales is largely due to lower sales units and lower averaging selling prices of cornstarch and other products including fibers, dextrin, corn embryo, protein powders, and phytin. Net income decreased 126% to a loss of $2.66m and fully diluted losses per share were $0.14, compared with net income of $10.41m, or fully diluted earnings per share of $0.52 in fiscal year 2008.
Gross profit in fiscal year 2009 is $7.52m, a decrease of 63% from $20.26m a year ago. Gross profit margin is 10.3%, a decline from 22.3% in fiscal year 2008. The gross margin decline is mainly due to lower averaging selling prices (ASP) and higher unit costs due to idle capacity. Operating income decreased 111% to $1.45m from $12.87m in the prior year.
Mr Qingtai Liu, CEO of Shengtai Pharmaceutical, said: “As the economic environment is improving, we have initiated a series of measures to embrace coming opportunities. We will focus on gaining higher glucose market share, controlling cost, and putting more focus in developing higher value added corn starch based products.”