Zhongpin issues 2010 guidance
January 12, 2010
by Bryan Salvage
BEIJING,CHINA – For 2010, Zhongpin's sales revenues are expected to be within a range of $900 million to $940 million, with gross profit within the range of $106 million to $115 million and net income within the range of $52 million to $57 million, said Warren Wang, chief financial officer. Diluted earnings per share is expected to be within the range of $1.49 to $1.64 per share.
This guidance is based on several assumptions and strategies including: continuation of China's policies designed to stimulate domestic consumption and economic growth; higher average pork prices in China's pork industry in 2010 than in 2009; higher sales volume of its pork products, led by chilled pork products, followed by prepared pork products and frozen pork products; a higher percentage of sales from our higher-margin chilled pork and prepared pork products; average capacity utilization of about 75 percent for pork products; increasing distribution efficiencies from expansion of our cold-chain logistics system and service areas; growing awareness of the Zhongpin brand in regional markets and emerging brand awareness across China; and continuation of the Chinese government's support and subsidies for producers of agricultural products, such as Zhongpin.
Zhongpin expects China's food processing industry will continue to consolidate, which may result in higher market shares for its main competitors.
Zhongpin Inc. is a meat and food processing company that specializes in pork and pork products, vegetables and fruits in China. Its distribution network in China covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,000 retail outlets. Zhongpin's export markets include the European Union and Southeast Asia.