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Nutrastar Announces Second Quarter 2011 Financial Results
Date:8/12/2011

hree Months and Six Months Ended June 30, 2011:Revenue

Revenue generated from sales of Nutrastar products for the three months ended June 30, 2011 was $7.68 million, an increase of $2.23 million or 40.8% from $5.46 million for the same period in 2010. Revenue generated from sales of Nutrastar products for the six months ended June 30, 2011 was $13.48 million, an increase of $3.25 million or 31.8% from $10.23 million for the same period in 2010. This increase was mainly attributable to continued demand for our core product, commercially cultivated Cordyceps Militaris, and increased sales of our functional health beverage products, which were launched in the fourth quarter of 2010.

Revenue by Business Segment The Company's revenue is categorized into three segments based on our product portfolio. In the three months ended June 30, 2011, revenue from our commercially cultivated Cordyceps Militaris was $6.07 million, representing 79.0% of total revenue; revenue from our organic and specialty food products was $0.48 million, representing 6.3% of total revenue; and revenue from our newly introduced functional health beverage product line was $1.13 million, representing 14.7% of total revenue. In the six months ended June 30, 2011, revenue from our commercially cultivated Cordyceps Militaris was $11.15 million, comprising 82.7% of total revenue; revenue from our organic and specialty food products was $0.97 million, comprising 7.2% of total revenue; and revenue from our newly introduced functional health beverage product line was $1.36 million, comprising 10.1% of total revenue. The functional health beverage product line was introduced in mid-November 2010 and has been rolled out in select cities in Jiangsu and Anhui.

Gross Profit

For the three months ended June 30, 2011, overall gross profit was $5.95 million, an increase of $1.38 million or 30.1% from $4.57 million during the same period in 2010. Gross margin was 77.4% f
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SOURCE Nutrastar International Inc.
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