VANCOUVER, June 1 /CNW/ - IND DairyTech Ltd. ("IND" or the "Company") (TSXV 'IND') today announced financial results for the quarter ended March 31, 2010. The unaudited interim financial statements along with management's discussion and analysis have been filed with SEDAR.
Revenue for the quarter was $1.5 million compared to $0.6 million in the first quarter of 2009. Net loss for the quarter was $2.9 million or $0.03 per share as compared to a loss of $1.3 million in the period of last year. The current quarter's revenue all comes from raw milk sales, which reflects increasing milking herds. The gross margin of raw milk was in loss due to the lower average raw milk yield. However, the Company expects gross margin to improve as recent added farms and milking cows enter into streamline production.
At March 31, 2010, IND had a herd size of 15,401 (December 31, 2009: 12,858) and should continue to expand its herds by increasing the purchase of Chinese Holsteins for embryo transfer and artificial insemination. Management remains dedicated to its strict quality control standards and cow herd monitoring; a total of 948 cows, primarily Chinese Holsteins, were disposed in this quarter.
"There have been challenges for our farm management in China in the first quarter due to diseases and our rapid expansion in many new farms. All our major competitors in the industry met with same difficulties," said Jesse Zhu, IND's CEO and Chairman. "IND management is making efforts to control the negative impact from diseases and implement a more effective management system for the farms. I expect to see we are making improvements in the following quarters."
About IND Dairytech Ltd.
IND, through its operating subsidiaries, is an emerging raw milk and Holsteins producer in China that is seeking to become a leading provider of high quality raw milk and Holsteins to the Chinese dairy industry. To meet China's increasing demand for dairy products, the Company is using Canadian cattle genetics and North American farming practices to establish and develop its dairy herd in China.
The Company plans to develop its herd in China through the use of advanced breeding techniques employing Canadian Holstein embryos that it intends to use to impregnate surrogate cows. These embryos have been created through in vitro fertilization using sexed semen to achieve an approximate 90% female birth rate. The use of these advanced breeding techniques is expected to allow the Company to rapidly expand its herd. The use of Canadian Holstein embryos also provides a practical solution to China's ban on the import of live Canadian cattle.
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FORWARD LOOKING INFORMATION
Certain information set out in this News Release constitutes forward-looking information, which may include information relating to estimates of sales and revenue of IND. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of the Company as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although the Company believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements of the Company contained in this press release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement.
SOURCE IND DAIRYTECH LIMITED
For further information: For further information: Jesse Zhu, Chief Executive Officer, IND DairyTech Limited, (604) 522-1619, firstname.lastname@example.org; James Xiang, VP Corporate Finance, IND DairyTech Limited, (416) 886-1261, email@example.com; Bill Mitoulas, Investor Relations, Stone Communications Service Limited, 1-800-336-9528, firstname.lastname@example.org