American Lorain has booked a 14% increase in second-quarter sales, driven by increased sales of its convenience and frozen food products.
In an announcement today (14 August), the company said sales increased 14.2% to US$35.7m in the quarter, as it grew its convenience and international operations.
The Chinese food maker revealed that gross profit increased 11% in the three months to 30 June, climbing to $8.5m from $7.7m last year. However, the firm warned inflationary pressures had hit its gross margin, which declined to 20.8% from 21.4% in the comparable period of the previous year.
Net income remained flat at $3.3m.
Show the press release
American Lorain Corporation Reports 2012 Second Quarter Financial Results
JUNAN COUNTY, China, Aug. 14, 2012 /PRNewswire-Asia-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 second quarter ended June 30, 2012.
Q2 2012 Operational Highlights
-- Strong sales in convenience and frozen food product lines with growth of 16.5% and 14.4%, respectively, over same period of last year
-- Convenience food segment continued to grow as a percent of total revenue
-- International sales accounted for 24.5%, as compared to 19.8% over same period of last year
Q2 2012 Financial Highlights
-- Total revenues of $40.8 million, an increase of 14.2% year over year
-- Net income attributable to common stockholders of $3.3 million, up 2.1% year-over-year
-- Diluted earnings per share of $0.102012
Second Quarter Financial Review
-- The Company reported sales for the 2012 second quarter of $40.8 million, an increase of 14.2% compared to $35.7 million in the second quarter of 2011.
-- Gross profit increased 11.0% to $8.5 million from $7.7 million in the prior-year period. Gross margin declined to 20.8% for the three months ended June 30, 2012, from 21.4% 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 $5.6 million, an increase of 13.1% from $5.0 million reported in the prior year period.
-- The Company had net income attributable to common shareholders for the second quarter of 2012 of $3.3 million, or $0.10 per diluted share based on 34.5 million diluted shares outstanding, compared to $3.3 million, or $0.09 per diluted share based on 35.0 million diluted shares outstanding in the prior-year period.
Original source: American Lorain
