Chinese infant formula group Synutra International has again cut its full-year financial forecasts after reporting a loss in the third quarter of its fiscal year.
In the three months to the end of December the company booked a net loss of US$13.3m compared to earnings of $10.3m last year. The increased cost of whey protein powder and an inventory write-down weighed on results. Operating profit slid to $362,000 from $21.4m in the prior year.
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Net sales fell nearly 36% to $73.2m. Synutra increased prices in April and also decided to focus its sales process on margins over quantity, it said.
Synutra pointed to improvement quarter-on-quarter, with sales and its bottom line improving in the third quarter compared to the previous two months.
However, Synutra cut its annual forecasts again, after readjustments in November and August.
It now expects revenue in the range of $275m to $280m and a net loss of $65m to $67m. Previously, the company expected sales of $300m to $350m and a net loss of $30m to $50m.
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By GlobalData
