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China-Biotics, Inc. Reports Record Quarterly and Annual Revenue Growth for Fiscal Year 2010
Date:6/13/2010

the retail probiotics market while our diversifying product portfolio is attracting different customer groups. The long-term growth prospect of retail probiotics products in China is promising as more and more Chinese become aware of the benefit of probiotics to enhance their health condition. Therefore, our current business lines continued to generate record growth momentum.

"More excitingly, our new bulk additive line quickly expanded to account for 26.8% of annual revenue in fiscal year 2010, an increase from 8.3% in fiscal year 2009. We expect the application of bulk additive probiotics in dairy and animal feed products to grow robustly in the future. The Chinese yogurt market is quickly embracing probiotics and the market potential is large. We remain confident that the addition of the bulk franchise will become the engine to drive our growth from both near-term and long-term perspectives. We look forward to becoming the dominant provider of bulk probiotics products in China and creating our long-term shareholder value."

Fourth Quarter FY2010 Financial Results

Revenues in the fourth quarter of fiscal year 2010 increased to $25.5 million from $15.5 million in the fourth quarter of fiscal year 2009. The increase was primarily due to increased sales volume in retail and bulk additive products, and bulk additive products increasingly account for a larger share of total revenue.

Gross profit increased 66.5% to $17.7 million from $10.6 million in the same period of fiscal year 2009. Gross margin was 69.4% compared with 68.5% in the same period of fiscal year 2009. The improvement in gross margin was mainly attributable to a product mix c
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SOURCE China-Biotics, Inc.
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