BioPharm Asia, Inc., a major retailer and wholesale distributor of medical products in China, today announced its financial results for the second quarter and six months ended June 30, 2009. For the second quarter, revenues were $19.9 million, up 22.0% from the $16.3 million generated during the second quarter of 2008. For the six months ended June 30, 2009, revenues totaled $42.6 million, up 27.5% from the prior year, largely due to an increase in wholesale revenues.
Gross profit for the quarter was $5.9 million, up 12.6% from the comparable period last year. For the first six months, gross profits were $12 million, up 21% from last year. Gross margin as a percentage of revenue declined to 29.8% in the second quarter of 2009 from 32.3% for the prior period, and the gross margin in the first half was 28.1% as compared to 29.7%.
Operating expenses for the second quarter decreased 9.1% from $2.2 million to $2.0 million. The lower operating expenses were the result of lower general and administrative expenses due to the collection of receivables that had previously been written off, and somewhat lower sales expenses.
Net income for the quarter was $2.7 million, or $0.05 per fully diluted share, up 27.5% from $2.1 million in the second quarter of 2008. For the six months ended June 30, 2009, net income was $5.9 million, or $0.12 per fully diluted share, up 43% from $4.1 million from the comparable 2008 period.
“The second quarter of 2009 marked a significant milestone as well as continued progress for this company,” stated BioPharm Asia’s Chief Executive Officer, Mr. Rogers Yin. “In May, we completed our listing into the U.S. equity markets under the trading symbol DOMR – which will shortly be changed to a symbol better reflecting our corporate identity. We have managed this important transition while maintaining our robust financial condition and expanding our retail operations. Further, we consider our second quarter financial results, including a 22.0% increase in revenues and a 27.5% increase in net income, to be especially impressive during one of the weakest seasons for our herb business. Our opportunistic retail expansion strategy is well on-track, and we believe that we now have the financial resources to maintain a strong rate of growth.”
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