Yuhe International reports rising profits in Q2
Main driver for growth was sales volume of day-old broilers.
Shandong-based Yuhe International Inc., a leading Chinese day-old broiler supplier, announced Aug. 14 its net revenue reached US$9.8 million in the second quarter of 2009, with a 75.5% growth rate on the year-to-year basis.
Specifically, for the three months ended June 30, its gross profit, net profit and operating income respectively reached US$2.8 million, US$2.1 million and US$2.1 million, an increase of 52.6%, 79.5% and 60.6% compared to the same period of 2008, according to the company.
At the same time, cheaper pork and seasonal fluctuations weakened demand, causing a 24% decline in its selling price of day-old broilers. Its gross margin decreased from 32.8% in Q2 2008 to 28.5% in Q2 2009 as a result of early retirement of parent breeders this year.
The increase of its net revenue was mainly driven by 117.8% growth rate in its sales volume of day-old broilers – from 11.8 million in Q2 2008 to 25.7 million in Q2 2009, according to the company.
With the help of day-old broilers sales growth, Yuhe is expected to reach US$50 million in total revenue and US$13 million in net income during the fiscal year 2009, said Gao Zhentao, the company's chief executive officer.
Yuhe is the second largest day-old broiler breeder in China. Currently, 85% of its day-old broilers are distributed to 27 local agents in Shandong province.