IND DAIRYTECH LTD REPORTS THIRD QUARTER OF 2010 FINANCIAL RESULTS AND APPOINTMENT OF KIT SHUM AS A DIRECTOR
December 03 2010 - 4:01PM
PR Newswire (Canada)
VANCOUVER, Dec. 3 /CNW/ -- VANCOUVER, Dec. 3 /CNW/ - IND DairyTech
Ltd. ("IND" or the "Company") (TSXV 'IND') today announced
financial results for the quarter ended September 30, 2010. The
unaudited interim financial statements along with management's
discussion and analysis have been filed with SEDAR. Revenues for
the quarter were $13.9 million compared to $4.8 million in the
third quarter of 2009. The increase in sales revenues was mainly
due to 5,493 cows sold in the quarter. Net income for the quarter
was $7.1 million or $0.06 per share as compared to a loss of $0.3
million in the third quarter of last year. A special investment
gain of $7.4 million was reported in the quarter from change of the
Company's interests in its subsidiary IND China, the details of
which are set out in the financial statements filed on SEDAR. The
current quarter's revenues include $2.2 million from raw milk
sales, and $11.7 million from sales of cows. The sales of milk
increased from $1.6 million from the third quarter of 2009, or a
36% growth, reflecting the increasing milking herd and increased
milk price. For the first 9 months of 2010, the total revenues for
milk sales were $5.7 million and $16.6 million for sales of cows,
and the net income for the 9 months in 2010 was $6.7 million,
compared to a loss of $3.3 million in the 9 months ended September
30, 2009. For the nine months in 2010, the gross margin of raw milk
was a negative of 25%, due to the impact of a foot and mouth
disease resulting into low milk production per cow in some farms
affected. The margin for sales of cows was 23% for the 9 months.
The Company expects the farms will recover from the disease, and
milk production per cow will improve, and the sales from raw will
continue to grow with an improving margin. For the nine months in
2010, the Company raised approximately $23.5 million from the
market, paid off $11 million debt, used $12 million in operating
activities, and used $8.6 million in purchase of properties and
cows. At September 30, 2010, IND had a herd size of 14,540
(December 31, 2009: 12,858). The herd size was not increasing as
fast as forecasted before due to sale of 5,493 cows during the
period and an additional disposition of 3,224 cows during the nine
month period ended September 30, 2010. Management remains dedicated
to its strict quality control standards and cow herd monitoring.
The Company reported $2.4 million loss from the disposal of cows in
the nine months of 2010. "The impact of foot and mouth disease
continued into the third quarter of 2010 and the Company is still
facing the challenges as milk productions in some farms are still
affected and cows disposed," said Jesse Zhu, IND's CEO and
Chairman. "However we have seen the impact of the disease stabilize
and will recover late into the quarter. Management has been making
efforts to control and reduce the loss. In the coming quarters,
after the effects of the disease have been eliminated, we expect to
see a positive operating income. The Company's management has been
actively raising money for the Company from the Chinese domestic
market and a net income reported in the quarter reflects the
management's successful efforts in creating value for the
shareholders." The Company also announces that Ms. Kit Shum
has been appointed as a director of the Company. Ms. Shum is a
recognized Canadian expert in cow raising who is a consultant for
the Canadian government in helping many countries in the world in
raising cows. Ms. Shum will chair the audit committee of the
Company. 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. The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release. 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. p/p table border="0" valign="top"tr
valign="top"td align="left"Jesse Zhubr/ Chief Executive Officerbr/
IND DairyTech Limitedbr/ 604-522-1619br/ a
href="mailto:jessezhu@ind.ca"jessezhu@ind.ca/a/td td
align="left" /td td align="left" /td td
align="left" /td td align="left" /td td
align="left" /td td align="left" /td td
align="left" /td td align="left" /td td
align="left" /td td align="left" /td td align="left"Selen
Zhoubr/ Corporate Secretarybr/ IND DairyTech Limitedbr/
416-522-1619br/ a
href="mailto:selen@ind.ca"selen@ind.ca/a/td/tr/table
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