Synutra International expects fiscal Q4 net earnings to be in range of US$10M-US$11M, revenue to be approximately US$99.5M
QINGDAO, China and ROCKVILLE, Maryland
May 12, 2014
– Provides Preliminary FY15 Growth Forecast
Synutra International, Inc. (NASDAQ: SYUT), ("Synutra" or the "Company"), which owns subsidiaries in China that produce, distribute and sell nutritional products for infants, children and adults, today announced unaudited preliminary fourth quarter and full year 2014 results.
For the fourth quarter ended March 31, 2014, the Company anticipates revenue of approximately $99.5 million, including $89.1 million from the formula segment, and net income in the range of $10-11 million. This equates to full year 2014 revenue and net income of approximately $371 million and $30-$32 million, respectively.
Mr. Liang Zhang, Chairman and CEO of Synutra said, "Our business momentum continued to improve in our fiscal fourth quarter with sequential increases in both formula segment revenue and net profit. Our success in the fourth quarter was due to increased shipment volumes driven by the spring holiday season as well as our increased marketing efforts. Our fourth quarter profit improved over the previous quarter as we drove greater efficiency in our sales & promotion structure. We expect continued strong top line growth and greater operating leverage in fiscal 2015, with full year revenue growth expected to be at least 20% over fiscal 2014 results, or between $450 to $500 million, and net profit growth expected to be at least 60%, or between $50 to 60 million."
Synutra plans to report its fourth quarter and full year 2014 results and provide greater visibility to its FY15 growth expectations in mid-June. The estimates presented in this press release are preliminary, unaudited and subject to further adjustments.
About Synutra International, Inc.
Synutra International, Inc. (Nasdaq: SYUT) is a leading infant formula company in China. It principally produces, markets and sells its products through its operating subsidiaries under the "Shengyuan" or "Synutra" name, together with other complementary brands. It focuses on selling premium infant formula products, which are supplemented by more affordable infant formulas targeting the mass market as well as other nutritional products and ingredients. It sells its products through an extensive nationwide sales and distribution network covering all provinces and provincial-level municipalities in mainland China. As of December 31, 2013, this network comprised over 670 independent distributors and over 620 independent sub-distributors who sell Synutra products in approximately 28,000 retail outlets.