Yayi International Inc. is a leading producer and distributor of goat milk formula products for individuals of all ages in the People’s Republic of China. The company today announced its financial results for the third quarter ended July 31, 2009, reporting solid increases and its expectations for the milk market.
Yayi posted a 13.2 percent increase in net sales at $7.1 million, up from $6.3 million for the third quarter of 2008. The company attributed 92 percent of the growth to increased sales volume as the company expanded its shelf space to more retail stores and distributors; 8 percent of the increase was attributed to an increase in its average sale prices.
Net income for the third quarter of 2009 was $1.8 million, or $0.07 diluted earnings per share, as compared to a net loss of $2.0 million, or a net loss of $0.08 per share, for the third quarter of 2008; net income includes $3.5 million in merger costs.
Gross profit rose 14.7 percent to $4.7 million, up from $4.1 million for the same quarter last year.
Li Liu, CEO of Yayi, said the company’s mission to present a leading brand of goat-milk products is closer to fruition.
“We are pleased to report strong revenue growth and improving margins during the third quarter, reflecting the growing acceptance of premium goat milk products and Yayi’s leadership in developing this market segment. Our goal is to develop a leading brand for a range of goat milk-based products based on a commitment to health and highest quality standards,” Li Liu stated in the press release. “During the quarter our facilities ran at between 80 to 90% of designed capacity. Following the $15 million investment by SAIF Partners in June, we have the financial resources to continue expanding our production capacity and market reach across China.”
Yayi operates through its subsidiaries Tianjin Yayi Industrial Co. Ltd.; Weinan Milkgoat Production Co. Ltd.; and Fuping Milkgoat Dairy Co. Ltd. The company’s current formula product lines include premium goat milk formula products for infants, toddlers and adults, as well as goat milk tablets and goat milk drinks. Yayi has secured a distribution network of about 3,600 diverse retail points.
In the press release, the company hinted at positive expectations for the premium milk market, and said it anticipates increased consumer awareness as it expands its line of products.
“Based on the strong market potential for our premium goat milk products, Yayi International is in the process of increasing our production capacity for powdered goat milk products by more than 200%. We are confident that consumer awareness will continue to expand, and we are actively planning to introduce a new range of products in the future, including liquid goat milk products, that we believe have tremendous growth potential,” Li Liu stated.