''We are pleased with this strong beginning to the 2009 fiscal year, and we are confident in our retail expansion and bulk additive business development strategies,'' said Mr. Jinan Song, Chairman and Chief Executive Officer of China-Biotics. "We have accelerated the pace of new customer acquisition for our additive business in preparation for launching our new plant. Currently, we are in negotiations with another 50 potential business clients. Of these, 30 have begun or completed sample testing for their probiotics-based products. We look forward to increasing the number of business customers in order to occupy the capacity of our new plant when it is up and running.''
Gross profit during the first quarter increased 18.2% to $8.1 million from $6.9 million in the first quarter of 2008. Gross margin was 71.3%, down slightly from 72.1% a year ago. Gross margin improved sequentially 5 percentage points from 66.3% in the fourth quarter of 2008, as the Company was able to increase prices on selected products.
Operating expenses increased to $3.8 million from $2.1 million in the first quarter of fiscal 2008. The increase was attributed to setup and operations costs for new retail outlets; increased salary expense stemming from new hires to support the Company's expansion; and additional research costs associated with the development and launch of new products. As of June 30, 2008, the Company had 339 employees and operated 83 Shining-branded retail outlets, up from 208 employees and 14 Shining outlets on June 30, 2007.
Operating income for the quarter was $4.3 million, compared to $4.7 million a year ago.
Other expense of $1.2 million in the first quarter of 2009 consisted of
a $1.2 million book loss reco
|SOURCE China-Biotics, Inc.|
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