China Pediatric Pharmaceuticals, Inc., China-based producer and distributor of pediatric medicines, has announced record first quarter results, including increased net sales, gross profit, and net income.
Sales for the quarter ended March 31, 2010, were $6,708,892, an 87% increase from the same period last year. Gross profit increased by 69% to $3,799,354. Net income increased 86% to $1,467,449. Earnings per share increased by 70% to $.017.
Revenue increase was attributed mainly to the increase in sales of the company’s popular “Cooer” Series of products, due to intensive promotion. A corresponding increase in promotional and advertising expenditures of around $438,000 resulted in a total increase in selling, general, and administrative expenses in absolute dollars of $921,700.
Although gross profit increased, the overall gross profit ratio decreased slightly compared with the same period in 2009, due to a series of events. Production was temporarily suspended during the period ended March 31, 2010, as a result of a GMP inspection, and the company accrued a surplus of raw materials on hand for production. They then sold all of the excessive raw materials, with a carrying value amounting to $645,682 (i.e., at cost $1,136,898 net of impairment brought forward $491,216) back to the suppliers for an aggregated of $982,894 (i.e., at a discount of around 86% of the original cost of $1,136,898).
Company Chairman and CEO, Mr. Jun Xia, said of the positive results, “We are very pleased with our first quarter results and while our sales and profit increased significantly we are confident we will be able to continue to increase sales by expanding our market share and increasing our brand recognition. Our product lines are becoming increasingly visible in pharmacies throughout China.”
The company’s headquarters are in Xi’an, Shaanxi Province, China, with its manufacturing facility in Baoji City, Shaanxi Province. The company identifies, discovers, develops, manufactures, and distributes both prescription and over-the counter medicines, including both conventional and Traditional Chinese Medicines (TCMs), for the treatment of some of the most common ailments and diseases, with pediatric medicine as its focus.
For more information see the company website at www.chinapediatricpharma.com.