Nutrastar International, Inc. (NUIN) Grows Bottom Line, Meets Expectations for Q2, FH13

Nutrastar, a China-based producer and supplier of premium branded consumer products, reports that it met earnings expectations in the second quarter and six months ended June 30, 2013, and reaffirmed its guidance for full-year 2013.

NUIN announced earnings of $5.96 million, or $0.37 per share, an increase of 21.7% compared to $4.90 million, or $0.35 per share, reported for the comparable year ago period. Second-quarter revenues of $11.87 million represent an increase of 18.3% compared to $10.04 million for the comparable quarter of 2012.

Gross profit increased 20.9% to $9.14 million, up from $7.56 million in the comparable 2012 quarter. Gross margin was 77% compared with 75.4% in the second quarter 2012.

For the six-month period, NUIN reported earnings of $9.38 million, or $0.58 per share, up 19.4% compared to $7.85 million, or $0.55 per share, for the first half of 2012. Revenue increased 14.1% to $19.29 million, compared to $16.90 million in the six months ended June 30, 2012.

Gross profit increased 16.9% to $14.78 million, compared to $12.65 million reported in the comparable 2012 period. Gross margin was 76.6%, compared to 74.8% in the first six months of 2012.

“In line with expectations, our financial results showed continued top-line growth, coupled with the robust progression of our bottom line. Gross margin expanded in the second quarter by 1.6% as a result of economics of scale due to increased capacity as well as an attractive product mix,” Lianyun Han, CEO of NUIN stated in the press release. “The majority of revenues, roughly 74% in Q2, stemmed from our higher margin commercially cultivated Cordyceps, which saw sales hit $8.8 million, up 17.1% year-over-year. Premium functional health beverages contributed $2.5 million in the quarter, up 26.7% as a result of prior company-led marketing initiatives specifically designed to grow this market.”

Based on management’s current expectations, NUIN maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase over last year.

“As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2013 revenue guidance. Demand for our premium consumer products remains steadfast and robust, especially among the affluent and elderly population,” Han stated. “We remain committed to expanding our market, growing our brand awareness and bringing more products into the hands of health-conscious consumers. To this end, we plan to embark on new, fresh campaigns geared towards better informing and promoting the health benefits of our premium consumer products, especially our on-the-go functional health beverages and instant soluble drinks, which we believe will be key market drivers in the future.

For more information, visit www.nutrastarintl.com

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