Nutrastar International Inc., a leading nutraceutical company that produces and distributes Chinese Golden Grass and organic and specialty food products in China, today announced its financial results for the first quarter 2010, noting strong demand for its products and services as a driving force for positive results.
The company posted a 2.7 percent increase in revenue to $4.77 for the three months ended March 31, 2010, from approximately $4.64 million for the same period in 2009.
The company attributes the increase to higher sales of its Chinese Golden Grass, as well as the sales of its small package Chinese Golden Grass products, and an increase in sale prices for its package Chinese Golden Grass products.
“We are pleased with our financial results for the first quarter of 2010 as we continue to see increasing demand for our Chinese Golden Grass products, which are sold as an active ingredient to pharmaceutical customers and in smaller packages to the consumer retail market,” Lianyun Han, president and CEO of Nutrastar stated in the press release. ”We believe, as the largest producer of Chinese Golden Grass based on volume, Nutrastar has approximately 19 percent of market share in China, and is well positioned to benefit from the growing demand for one of the most highly regarded herbal nutrients in the Chinese culture.”
Nutrastar reported an increase in gross profit, up 28.4 percent to approximately $3.71 million for the first quarter of 2010 compared to approximately $2.89 million during the same period in 2009. Gross margin was 77.9 percent for the three months ended March 31, 2010, an increase of 15.6 percent from 62.2 percent during the same period in 2009.
Net income increased 25.3 percent to approximately $2.72 million for the three months ended March 31, 2010, from approximately $2.17 million for the same period of 2009, as a result of the factors described above.
The company offered guidance for 2010, stating its plans to boost revenue generated through sales of Chinese Golden Grass, as well as its plan to increase product awareness and availability.
The company also said its growth strategy includes the introduction of new products targeting multiple downstream markets, including mass consumer, nutraceutical and pharmaceutical markets. Nutrastar’s growth plan during 2010 will include the roll-out of a new branded specialty beverage product, “Golden Grass Energy Drink,” which the company plans on commercializing in the second quarter of 2010.