Synutra continues to feel impact of infant milk scandal
Chinese infant food manufacturer Synutra International has said that it continues to feel the financial impact of unsubstantiated claims that its products caused premature breast growth in three infant girls.
The company’s third-quarter sales, for the three months to the end of December, more than halved, while net losses more than doubled.
Synutra attributed the falls to unsubstantiated claims that its products caused premature breast growth in three infant girls.
The company’s CFO Donghao Yang said on Thrusday (3 February): “The negative media reports from early August 2010 continued to drastically impact our financial results and our third-quarter sales of US$44.2m and net loss of $20.5m can be directly attributed to that disruptive event”.
The company said that during the quarter, net sales from its branded powdered formula segment were $20.7m, or 46.8% of net sales in the third quarter, compared to $37.3m or 90.5% of net sales in the second quarter.
Net sales of other products, which mainly consist of surplus milk powder, whey protein and raw milk sold to industrial customers reached $23.3m or 52.7% of net sales, compared to $2.9m or 7.1% of net sales in the second quarter.
However, Yang added that the company’s powdered formula sales and gross margin in December “give us reason to believe that the worst is behind us and we have begun a sustainable recovery”
Shares in the company were up 1.2% at the NYSE’s close last Thursday to $12.36 a share.
just-food is the world’s leading portal for the global pre-packaged food and retail industries. Its daily mix of breaking news, views, analysis and research serves over 100,000 food executives each month. http://www.just-food.com/
Quick service restaurants are growing rapidly and competition can often feel like a feeding frenzy....
US supermarket titan Kroger has announced its top food trend predictions for 2019, curated by its Ou...
Major UK retailer, Marks and Spencer, has announced it will be opening a line of cafes offering its ...
This week, Wine Australia launches its largest-ever promotion of Australian wine in the USA – the F...
Nestlé today announced that it will invest up to CHF 2 billion to lead the shift from vir...
The milkman might be a thing of the past for many Australians but the service has made a comeback in...
Coles has been announced as the "official supermarket partner" at all AFL and AFLW games in 2020 to...
A world-first study led by independent research company, Nutrition Research Australia (NRAUS), has ...