China's Yuhe International Inc. reported an adjusted net income gain of $19.47 million (up 52% from 2009's $12.79 million), according to the company's unaudited financial results for the 2010 fiscal year.
Net income prior to adjustment reflected a loss of $34.34 million for fiscal year 2010 due to the impact of non-cash stock-based compensation involving a company shares transfer.
The company also saw a fourth quarter adjusted net income gain of $6.2 million (up 71.13% over 2009's $3.6 million); the pre-adjusted number reflected a loss of $47.6 million due to the shares transfer. "Our 2010 non-GAAP net income of $19.5 million has surpassed our previously raised guidance of $18.5 million in net income," said Zhentao Gao, chairman and CEO of Yuhe. "The growth was driven by an increase in both sales volume and average selling prices of our day-old broilers."
For 2011, Yuhe is predicting a net income in the range of $33 million to $36 million. "Currently, China's day-old broiler market continues to experience higher average unit selling prices as compared with the same period of 2010," said Gao. "In addition, the capacity increase from our previous acquisitions made in December 2009 [of 13 breeder farms] and July 2010 [of 15 breeder farms] is expected to be reflected in our increased day-old broiler output throughout 2011. We have commenced construction of a fourth hatchery facility designed to have 100 sets of hatchers, which is expected to commence operation in 2011."
A gross profit of $24.2 million in fiscal year 2010 (up 44.5% from 2009's $16.7 million) and $7.5 million in the fourth quarter (up 59.4% compared to 2009's $4.7 million) were also reported.