Rising consumption boosting profits of producers in China
Fujian Sunner Development and Shandong Minhe Animal Husbandry in China, respectively recorded net profit jumps of 83.36 percent and 416.71 percent for the first half of 2011. Shandong Yisheng Livestock and Poultry Breeding, another integrator, anticipated between between 145 and 155 percent year-on-year growth in its net profits during that period.
Sales of chicken products rose 23.93 percent, resulting in revenues of 1.24 billion yuan, up 43.59 percent. Total profits grew 83.4 percent year-on-year to 127.37 million yuan while net profits hit 127.34 million yuan. The company said sales prices of chicken have outpaced cost.
On a yearly basis, chicken prices rose 14.14 percent while unit costs of chicken grew only by 10.75 percent. The company’s current capacity is only able to meet half of demand with a large number of new clients cueing up.
Minhe Animal reported revenues of 588.14 million yuan, an increase of 43.46 percent year-on-year, while net profits hit 85.36 million yuan. During that period, their gross profit margin hit 40.46 percent, an increase of 43.45 percent on yearly basis.
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