China Organic Agriculture, Inc. announced yesterday their financial results for the first quarter ended March 31, 2010. First Quarter 2010 results include revenue of $32.4 million. This represents a decrease from $36.7 million in the first quarter of 2009. Gross profit was $8.2 million, compared to $8.4 million in the first quarter of 2009. Net income attributable to the Company’s shareholders in the first quarter of 2010 was $3.0 million.
Fully diluted earnings per share in the first quarter of 2010 were $0.04. This is in comparison to $0.05 in the first quarter of 2009. China Organic Agriculture, Inc. acquired 60 percent of the stock of Changbai Eco-Beverage Co., Ltd. for $10.3 million, on March 23, 2010. As the Company acquired Changbai Eco-Beverage Co., Ltd.’s new blueberry product segment, its contribution to the Company’s first quarter revenues was limited.
The gross profit margin for the first quarter of 2010 was 25.4 percent compared to 22.8 percent in the same period of the prior year. The improvement in gross profit margin largely offset the decline in revenue. The improvement to their gross profit margin was in part attributable to China Organic Agriculture, Inc.’s decision to trade in beans and soybeans more actively. Beans and soybeans have better margins.
Concerning their financial condition, as of March 31, 2010, China Organic Agriculture had cash and cash equivalents of $25.1 million. This is up from $18.5 million as of December 31, 2009, excluding restricted cash. Working capital as of March 31, 2010 was $62.7 million, compared to $47.5 million as of March 31, 2009.
China Organic Agriculture, Inc. primarily engages in the acquisition, trading, and distribution of agricultural products. Headquartered in Liaoning Province in China, the Company consists of several subsidiaries including Ankang Agriculture, Dalian Huiming, and Bellisimo Vineyard.
The Company is a diversified company and they mainly engage in green and organic rice processing and distribution, food provision, mountain specialty trading, and production and marketing of ice wine and red wine. They distribute their products throughout China to meet the rapidly growing demand in healthy food.
For more information visit: www.chinaorganicagriculture.com.