SkyPeople’s gross profit margin increased to 43.8% from 21% for the first quarter of fiscal 2008. Income from operations increased 88.1% year-on-year to $2m, while net income increased 17.8% year-on-year to $1.2m, or $0.04 per diluted share.
Mr Yongke Xue, CEO of SkyPeople, said: “Our strong gains in gross profit margin, operating income and net income for the first quarter demonstrate our ability to successfully develop and bring to market high-quality, healthy and nutritious fruit juice products that satisfy accelerating consumer demand and preference for healthier, fruit-based juice drinks.
“Interest in small breed fruit products, such as our specialty kiwifruit and mulberry products, continues to escalate worldwide due to the nutritional advantages and unique taste of these specialty fruits, which are not as widely available as more traditional juice flavours. We also began sales of high-margin kiwifruit and mulberry vinegar products during the first quarter. Sales in each of these product categories offset part of our planned decrease in apple and pear juice product sales, as we seek to build a larger volume of higher margin product sales into our mix.
“One of our goals is to increase our production capacity of kiwifruit juice and kiwifruit puree from 10,000 tonnes to 22,500 tonnes by the third quarter of 2009. We will also continue to invest in upgrading our existing facilities to improve our operational efficiency and productivity. As the fruit juice market continues to evolve, we’re confident in our ability to meet growing consumer demand domestically and internationally for unique and high-quality juice products.”
Source: SkyPeople Fruit Juice Inc
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