China Agri-Business Inc., a manufacturer and distributor of more than 50 organic agricultural application products in China, today reported its financial results for the first quarter of 2010, posting higher sales, net income, and earnings per share for the quarter.
The company reported a 228-percent increase in total sales to $1,540,941 in the three months ended March 31, 2010, compared to $469,572 in the three months ended March 31, 2009. The company attributes the increase to its “New Agriculture-Generator” campaign, initiated to expand its distribution network directly with farmers and to establish a closer relationship with them through agricultural cooperatives in the rural areas of China.
“In the first quarter this year, we accelerated our initiative called the ‘New Agriculture-Generator.’ Our primary objective in this initiative is to expand our business by creating our own network of direct sales stores for our products and also by partnering with existing stores to create a super chain of branded stores that feature China Agri-Business products. This initiative should create much closer relationships for us with farmers in the rural areas of China where our direct sales stores and the super chain branded stores are located,” Liping Deng, CEO, president, and director of China Agri-Business stated in the press release.
Cost of goods sold increased 492 percent to $865,118 in the first quarter of 2010 from $146,242 in the first quarter of 2009. Gross profit increased 109 percent to $675,823 in the first quarter of 2010 from $323,330 in the comparable quarter of 2009.
China Agri-Business reported a 210-percent increase in net income to $331,808 in the first quarter of 2010 compared to $106,916 in the first quarter of 2009. The company attributes the increase in net income primarily to its “New Agriculture-Generator” campaign and expansion of the direct sales network.
As of April 2010, the company reported that is has established about 250 direct sales stores and about 100 super chain branded stores.
“We are still in the early stage of this expansion. These two distribution channels in the first quarter of 2010 together accounted for 80.84 percent of our sales, while the traditional sales distribution network, which consists of independent wholesalers, distributors, and retailers, provided the remaining 19.16 percent of our sales in the quarter,” Deng stated. “We expect to continue adding direct sales stores and believe that by yearend 2010, we could have as many as 500 direct sales stores selling our products.”
Deng said the company received positive results from its strategy and feedback from clients and partners, and said he believes the company’s long-term growth programs will create long-term value for China Agri-business shareholders.
For more information visit www.chinaagri-business.com
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