Chinese snack food firm American Lorain has reported mixed third-quarter results, with the bottom line hit by one-off items but operating profit increasing.
Net income was down 25.7% to US$5.3m, mostly thanks to a gain the company recorded in last year's third quarter from an asset sale.
However, income from operations was up 3.1% at $8.5m on the back of higher sales. Net sales increased 4.2% to $58m.
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American Lorain Corporation Reports 2012 Third Quarter Financial Results
JUNAN COUNTY, China, Nov. 14, 2012 /PRNewswire-FirstCall/ -- American Lorain Corporation (NYSE Amex: ALN) ("American Lorain" or the "Company"), an international processed snack foods, convenience foods, and frozen foods company based in the Shandong Province, China, today announced financial results for its third quarter ended September 30, 2012.
Q 3 2012 Operational Highlights
Strong sales in chestnut products with growth of 10.3% over same period of last year Convenience food grew 3.9% over same period of last year International sales accounted for 27.7%, as compared to 24.2% over same period of last year
Q 3 2012 Financial Highlights
Total revenues of $58.0 million, an increase of 4.2% year over year Net income attributable to common stockholders of $5.3 million, down 25.7% year-over-year, mostly due to the one-time gain we recognized in the third quarter of 2011 when we sold a parcel of land previously carried on our balance sheet as a short term investment Diluted earnings per share of $0.15
The Company reported sales for the 2012 third quarter of $58.0 million, an increase of 4.2% compared to $55.6million in the third quarter of 2011. Gross profit increased 0.3% to $12.39 million from $12.35 million in the prior-year period. Gross margin declined to 21.4% for the three months ended September 30, 2012, from 22.2% for the prior-year period. The decrease is primarily due to increased inflation pressure for raw materials as well as increased labor cost. Income from operations during the period was $8.5 million, an increase of 3.1% from $8.2 millionreported in the prior year period. Operating margin for the 2012 third quarter remained flat at 14.6% compared to 14.7% in the prior-year period. The Company had net income attributable to common shareholders for the third quarter of 2012 of$5.3million, or $0.15 per diluted share based on 34.5 million diluted shares outstanding, compared to$7.1 million, or $0.20 per diluted share based on 34.6 million diluted shares outstanding in the prior-year period. The decrease is mostly due to the one-time gain we recognized in the third quarter of 2011 when we sold a parcel of land previously carried on our balance sheet as a short term investment.
