China-based producer and supplier of organic and specialty foods, Nutrastar International, Inc. announced record financial results for the third quarter of 2011. Some of the highlights for this quarter’s performance include a 47.9% increase in revenue to $9.56 million, a 39.4% gross profit increase to $7.36 million and $4.98 million in net income.
Nutrastar also posted positive results for the nine-month period ending on September 30, 2011. During this period, revenues increased to $23.04 million, a 38% bump. Nutrastar also posted increased gross profit and net income, $17.74 million and $11.89 million, respectively. The company reported that these increases can be attributed to higher sales across the board as demand for their core products rose, especially the commercially cultivated Cordyceps Militaris. It is also notable that these increases came after the company launched their health beverage product lines in the fourth quarter of 2010.
The company is pleased with its 3rd quarter results and is confident that it is a good indication of future success. As 2011 winds down and the New Year begins, Nutrastar plans to concentrate on growing overall sales, diversifying and expanding its product offerings and increasing brand awareness throughout the country and the world.
Ms. Lianyun Han, CEO of Nutrastar, commented, “In spite of difficulties in the global market, third quarter 2011 closed as a significant quarter in Nutrastar’s history. Not only did we experience a notable uptick in sales volume for both our core Cordyceps and new functional health beverage products, but also made momentous advances in our corporate development. In the past quarter, we successfully furthered our internal Cordyceps production capacity expansion project, embarked on the considerable extension of our organic & specialty foods business and implemented a share repurchase program, just to name a few. As compared to the same periods of 2010, revenue recorded in the third quarter increased by approximately 48% and revenue for the first nine months grew by approximately 38%. Net income rose 22.5% in the third quarter and increased 16.5% for the first nine months of 2011 as compared to the same 2010 timeframes. Overall gross margin for the first nine months of 2011 remained at a healthy 77%.”
Ms. Han continued, “On Nutrastar’s product pipeline, our organic & specialty foods business is currently undergoing a strategic expansion both in production capacity and product offering over the next 12-18 months, which we are very excited about. Working closely with experts at the Northeast Agricultural University, we are busy constructing greenhouses that are fully capable of continuously growing large quantities of various organic produce such as fruit and vegetables that adhere to the highest food safety regulations and quality control standards. We expect to begin selling a variety of organic produce to our local communities in the first quarter of 2012 and seeing a revenue stream from these initiatives that same year. Moreover, our exclusive Cordyceps infused alcohol is also expected to be introduced in the near future once we’ve finalized the appropriate distribution channels. We anticipate that once released, it will enjoy favorable reception in the consumer market and assist in growing our top line.”
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