Feihe reports rise in Q3 revenue

Chinese food company Feihe International saw a 22.6% jump in 2011 third quarter revenue results to $75.4m, compared with $61.5m in the same period in 2010.

The increase was primarily due to the boost in sales of milk powder and raw milk powder, which was partially offset by a decline in sales of soya bean milk powder.

While revenue from branded milk powder products was $55.5m, a rise from $40.9m year-on-year, the revenue from raw milk powder was $16.9m, compared with $14.4m in 2010.

The gross profit increased by 9% to $27.5m, and income from operations jumped from last year’s $0.7m to $3.2m.

Feihe International chairman and CEO Leng You Bin said the positive results demonstrate the progress the company has made in the last few quarters towards strengthening its footprint in the competitive Chinese infant formula industry.

"We will continue to make improvements on our operations across all functions, including improving the cost-effectiveness of our selling expenses, improving our products mix and increasing sales at existing retail sales points to drive greater profitability," Bin said.