Chinese infant formula producer Feihe International has swung to a full-year net profit, boosted by sales from branded infant formula products.
For the 12 months to the end of December, income from continuing operations before income tax expenses amounted to US$14.6m, compared to a loss of $3.7m in the corresponding period in 2010.
Operating income reached $9.6m in the period, compared to an operating loss of $23.3m last year. The increase was partially attributable to lower selling expenses and increased revenue.
Sales increased 14.2% to $292.9m during the year. Contributions from branded milk powder products were around $217.5m. The increase was primarily due to increased high margin infant formula sales, particularly for the company's AstroBaby and Feifan series.
"Our continued growth demonstrates that we are increasing our footprint in the Chinese infant formula industry," said vice chairman and CFO Liu Hua. "Sales from our branded infant formula products continue to increase quarter over quarter and we are confident that it will continue to grow in the future."