China Marine Food Group Ltd., a manufacturer of Mingxiang-branded seafood snacks, “Hi-Power” marine algae-based beverages and distributor of frozen seafood, today announced its second-quarter financial results.
Net sales for the second quarter hit USD 61.3 million, a 177 percent increase from the same period in 2011. Gross profit totaled USD 9 million, a 25.5 percent increase, while operating income in the quarter was a loss of USD 1.6 million, compared to an operating profit of USD 1.2 million in the prior year’s period.
“Our second quarter results reflect a rebound in demand for ‘Hi-Power’ beverages and marine catch products and the revenues we can achieve with seafood trade, as we work to maintain our position in the market with consumers of our foods and beverages,” said Pengfei Liu, chairman and CEO of China Marine.
“As we discussed on our year-end 2011 earnings call, we are still feeling the lingering effects in consumer perception of food and beverage safety in seafood and canned beverages from two completely unrelated instances in Japan and Taiwan. As a result, we maintained an elevated level of investments in advertisements and promotions to communicate the safety and value of our products. While certain distributors have placed reorders as they restock inventories of our seafood snack foods, overall consumer demand for seafood snacks remained well below levels prior to the Japan disaster. However, sales have rebounded nicely during the second quarter this year.”
The company’s revenues from its “Hi-Power” algae-based beverage line were USD 12.3 million, a 42.2 percent increase compared to 2Q2011. Its “opportunistic” frozen marine catch business segment generated USD 38.3 million in the second quarter, compared to no sales in the same period a year ago.
