Nutrastar's net revenue increases 1.8% to $13.24 million in second quarter 2015

Nutrastar International Inc. (OTC: NUIN)("Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), functional health beverages and organic and specialty foods, today announced its results for the three months and six months ended June 30, 2015.

Financial Highlights for the Three Months Ended June 30, 2015

  • Net revenue was $13.24 million, representing an increase of $0.24 million or 1.8% from $13.00 million in the comparable 2014 three month period.
  • Gross profit was $10.32 million, representing a gross margin of 77.9%.
  • Net income was $7.08 million, representing a net margin of 53.4%.
  • Basic and diluted EPS were $0.41 and $0.40, respectively, with 16.99 million basic shares and 17.74 million diluted shares outstanding.

Financial Highlights for the Six Months Ended June 30, 2015

  • Net revenue was $20.29 million, representing an increase of $0.41 million or 2.0% from $19.87 million in the comparable 2014 six month period.
  • Gross profit was $15.78 million, representing a gross margin of 77.8%.
  • Net income was $10.61 million, representing a net margin of 52.3%.
  • Basic and diluted EPS were $0.62 and $0.60, respectively, with 16.98 million basic shares and 17.74 million diluted shares outstanding.

Management Commentary

Ms. Lianyun Han, CEO of Nutrastar, commented, "For the first half of 2015, we performed in line with our expectations. Sales of our core premium consumer product Cordyceps came in at $17.29 million, up 3.1% year-over-year, functional health beverages contributed $1.83 million and organic and specialty foods segment, our third consumer product category, contributing $1.17 million to revenues. Gross margin expanded in the first half of the year by 0.9% to 77.8% as a result of economics of scale and an attractive product mix. Overall, we're delighted with the outcome of the second quarter and first six months of the year -- both periods marked by continued strong margins and an overall increase in revenue thanks to continued Cordyceps demand."

Ms. Han continued, "As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2015 revenue guidance. Demand for our premium consumer products remains steadfast and robust. We remain committed to growing our brand awareness, bringing more products into the hands of health-conscious consumers and expanding our market internationally."

"As far as composition of our Board of Directors, after the resignation of Mr. Zhang Chunming due to personal health reasons, the Board currently comprised of six members, four of whom are independent directors. I would like to thank Mr. Zhang for his service over the past few years and wish him well in his future endeavors. The Company has started the recruitment process of a new director to fulfill the vacancy. We expect bringing on someone who can assist the Company in areas of product development and market expansion," added Ms. Han.

Outlook for the Year Ending December 31, 2015

Based on management's current expectations, full year 2015 revenue remains in the range of $43 million to $45 million.

Source:

Nutrastar International Inc.

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