Chinese infant formula group Synutra International has lowered its full-year outlook for a second time, having booked a second-quarter loss.
The company said net losses totalled US$44.2m in the three months to the end of September, against an income of $8.5m in the comparable period of last year. Net sales fell by around a third, falling to $66.1m from $99.1m last year.
The company attributed the decline to lower volumes which came in response to pricing action it has taken for its infant formula products. The company said distributors had stocked up on its products in the final quarter of the previous year, in order to avoid a planned price increase.
For the full year, Synutra now expects a loss of $30-50m on revenue of $300-350m. This is the second profit warning issued by the company this year. In August, Synutra had cut its full-year net profit forecast to a range of $50-57m, down from previous guidance of $55-65m.