Green Star Reports Record 2011 Financial Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 04/30/12 -- China Green Star Agricultural Corporation (TSX VENTURE: GRE) ("Green Star" or the "Company"), an advanced processor of agricultural products such as canned fruits and vegetables for distribution to international and domestic markets, today released its audited financial results for the year ended December 31, 2011.
2011 Key Financial Metrics
"Our 2011 fiscal year-end results reflected our ability to successfully execute our sustainable growth strategy of maximizing our production capacity, for canned tomato paste; establishment of a new production line for canned grapes; and increasing sales to the local Chinese market," said Guan Lianyun, Chairman and CEO of Green Star. "We are making progress towards eventually marketing and developing our own brand. We generated record annual revenue, record annual EBITDA and record annual profit while growing our production and sales capacity in key strategic markets."
2011 Operational and Financial Highlights
Review of Financial Results
Green Star's principal sources of revenue are from the sale of canned food and fresh agricultural produce. The canned food division mainly consists of canned food processing which includes the manufacturing of canned tomato paste, canned boiled bamboo shoots, canned oranges, canned yellow peaches, canned grapes and various other types of fruit. The agricultural produce division consists of the cultivation and harvesting of agricultural produce such as fresh oranges and bamboo shoots for sale directly as fresh produce or through various distribution channels as processed and canned product.
Green Star reported record consolidated revenue of $40.3 million for the year ended December 31, 2011, up 33% from $30.3 million for last year. The revenue growth was primarily due to additional production and sale of canned tomato paste, introduction of a new product line of canned grapes within the canned food division, as well as rising selling prices of both its canned products and fresh agricultural produce.
Revenue from the canned food division increased 45% in 2011 compared to 2010 while revenue from the agricultural produce division increased 2% in 2011 versus 2010.
The growth in the canned food division was primarily due to a $7.1 million increase in canned tomato paste sale and $1.4 million revenue generated from the new product line of canned grapes that Green Star launched in July 2011. The average increase in the selling price of canned food was 9% from 2010 to 2011. Sales quantity for the canned food division increased 32% from 2010 to 2011 due to increased demand.
The growth in the agricultural produce division was primarily due to a 26% average increase in the selling price of fresh orange and bamboo shoots less the effect of an 18% decrease in revenues compared to 2010.
The revenue mix for 2011 was approximately 79% canned foods and 21% agricultural produce compared to 72% canned foods and 28% agricultural produce for 2010.
Gross profit increased to $16.4 million in 2011 from $12.0 million in 2010, an increase of 36%. Gross profit as a percentage of sales increased to 40.6% in 2011, compared to 39.7% for 2010, with improvements for both the agricultural produce division and the canned food division. The agricultural produce division's gross profit improved to 62% in 2011 compared to 59% in 2010 and was the result of a general increase in the selling price of agricultural produce. The canned food division's gross profit margin improved to 35% in 2011 compared to 32% in 2010, a reflection of improved efficiency.
Green Star generated net profit of $8.9 million in 2011, up 15% from $7.7 million in 2010. The Company's basic earnings per share were $0.64 in 2011 compared to $0.62 in 2010.
At December 31, 2011, Green Star held cash of $7.6 million and working capital of $20.4 million compared to $1.5 million and $9.3 million, respectively as at December 31, 2010. The increase in both cash and working capital was a result of improved operating results.
Outlook
"We achieved record financial results for our first year as a publicly listed issuer," said Mr. Guan. "We are encouraged by our growth and progress to date and look to build on that success in the coming fiscal year."
About Green Star
Green Star operates two main divisions, agricultural and food processing. The agricultural division is involved in the cultivation and harvesting of agricultural products such as fresh fruit and vegetables, for sale either directly as fresh fruit and vegetables or canned, and sold overseas and domestically. The food processing division is primarily involved in the manufacturing of canned food which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables.
The Company has been operating for over 18 years, and has focused on maintaining product and reputational excellence and a high standard of food quality, through the application of science and technology in production, quality control and assurance, business operations and management. Key assets include a well established management team, modern production facilities, and a close partnership with local farmers.
China Green Star Agricultural Corp. is listed on the TSX Venture Exchange under the symbol "GRE".
Caution Regarding Forward-Looking Information:
Certain statements in this press release may constitute "forward looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements may use such words as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 25, 2011, available on , for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release and does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
Green Star Agricultural Corporation
Michael Lam
Chief Financial Officer
416 849 3858
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Datum: 30.04.2012 - 15:05 Uhr
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