Chinese Chicken Company Reports High Revenues

Yuhe International, a supplier of day-old chickens raised for meat production in China, has reported net revenue of $13.2m for the third quarter of 2009, an increase of 37.4% compared to $9.6m for the same quarter in the previous year.

The company said the increase was mainly driven by a 25.5% growth in sales volume of chickens to 30 million from 23.9 million, driven by product capacity expansion, greater parent breeder volume and recovery in the average selling price per bird.

Yuhe recorded $0.4m in sales of retired breeder stocks and approximately $130,000 in sales of eggs, compared to $0.3m and approximately $120,000, respectively, in the comparable period last year.

The increase was in-line with the production capacity expansion.

Operating income for the quarter was $4.3m, an increase of 166.1% compared to $1.6m in the third quarter of prior year.

Net income for the quarter was $4.1m, an increase of 114.8% compared to $1.9m in the same period last year.

The company has budgeted an additional $10m that will be spent through the first half of 2010 to add new breeder farms, purchase 300,000 new parent breeders and expand its hatcheries.