Synutra International, a China-based infant formula manufacturer, has reported that its net earnings for the fourth quarter of 2013 c to $3.3m, compared with $7.5m for the same period in 2012.
For the period ended 31 March 2013, the company posted 14.5% decrease in net sales to $72.9m, compared to $85.3m for the same period in the last year.
Synutra chairman and chief executive officer Liang Zhang said that the company is encouraged with our ongoing efforts to stabilize our core branded powdered formula business and return to profitability in the fiscal fourth quarter.
"We believe the short-term negative impact of our price increase implemented in April 2012 has diminished as we continue to nurture and invest in our brands to garner broader trust at the retail level."
For the full-year, the company posted 22.4% decrease in net sales to $265.7m, compared to $342.5m for the same period in 2012 with a loss of $63.8m compared with a profit of $16.7m in the previous year.
Net sales from branded powdered formula products decreased to $224.4m, compared with $301.7m in the prior year period. The decrease was primarily due to the significant purchases by distributors prior to the company's retail price increase effective 1 April 2012, and the short-term impact on orders as it implemented the Gold Mining program throughout fiscal year 2013.
Net sales from other products, which consists mainly of sales of imported whole milk powder and whey protein sold to industrial customers, were $34.2m, compared with $39.7m in the prior year.
Synutra International is a leading infant formula manufacturer in China. It primarily produces, markets and sells its products through its operating subsidiaries under the 'Shengyuan' or 'Synutra' name, together with other complementary brands.
