Synutra International, which owns subsidiaries in China that produce, distribute and sell nutritional products for infants, children and adults, announced financial results for the fourth quarter and full year fiscal 2014 ended March 31, 2014.
Mr. Liang Zhang, Chairman and CEO of Synutra, commented, "Overall we were pleased with our fourth quarter results and our full year financial performance. Throughout the year we experienced strong top-line growth and continuously improved the efficiency of our marketing, sales and distribution activities."
Net sales were $98.7 million for the fourth quarter of fiscal 2014, an increase of 36% from $72.9 million in the fourth quarter of fiscal 2013. Net sales from the Company's branded powdered formula segment were $88.4 million, or 90% of net sales in the quarter, compared to $61.5 million, or 84% of net sales, in therior year period.
By volume, sales of powdered formula products increased to 6,965 tons in the fourth quarter, from 5,661 tons in the prior year period. The year-over-year increase in volume mainly reflected the successful execution of the Company's Gold Mining Strategy. Average selling price increased 17% over the same period last year to $12,692 per ton.
Net sales from Nutritional Ingredients and Supplements, which is comprised of external sales of chondroitin sulfate to third parties, was $4.1 million and remained consistent year-over-year at 4% of total net sales. Shipments of nutritional ingredients and supplements are based on annual supply contracts and tend to remain stable throughout the year.
Net sales from Other Products, which includes imported whole milk powder and whey protein powder sold to industrial customers, was $6.2 million, or 6% of net sales, in the fourth quarter of fiscal 2014, compared to $8.0 million, or 11% of net sales in the prior year period.
Gross profit was $38.2 million in the fourth quarter of fiscal 2014, compared to $28.3 million in the prior year period. Gross margin remained consistent year-over-year at 39%. Powdered formula margin was 45%, down from 48% in the prior year period, due to the higher cost of raw milk powder.
Selling and distribution expenses were $13.0 million in the fourth quarter of fiscal 2014, compared with $11.0 million in the prior year period.
Advertising and promotional expenses were $3.9 million, compared with $6.4 million in the prior year period. General and administrative expenses decreed to $6.7 million from $8.2 million in the prior year period.
Income from operations was $13.9 million, an increase of 107% from the prior year period. Net income attributable to common stockholders was $10.1 million in the fourth quarter of fiscal year 2014, or $0.18 per basic share, a 209% increase from net income of $3.3 million, or $0.06 per basic share, in the prior year period.