American Lorain Corporation (NYSE Amex: ALN) (“American Lorain” or the “Company”), has recently shared its year end results for 2011.
American Lorain’s Chairman and CEO, Mr. Si Chen, believes his company has remained steadfast despite the earthquake in Japan during the first part of 2011. In fact, Japan made up for almost 15% of the Company’s total sales for 2011, keeping it an important piece of the Company’s exporting.
Overall the Company showed growth in every segment and added revenues that help it hold its place in the market. American Lorain’s segment of frozen foods saw an increase of 14% in 2011 for a total of $30 million, $4 million more than in 2010. The Company has seen frozen foods having steady growth over both years, approaching 15% of the total revenue.
Convenience foods, which include the entire ready to eat products, have been American Lorain’s best seller with a 28% increase amounting to just under $73 million in 2011. This segment makes up 34% of the total revenues and continues to be the most rapidly expanding product line the company offers.
The bulk of American Lorain’s sales come from its chestnuts which represented almost 52% of sales for 2011. This was a 9% increase to $110 million. The company credits retail prices of its chestnuts and chestnut syrup as well as marketing campaigns for the increase. Due to the seasonal nature of chestnut sales, the strongest quarter was still the fourth.
Chen has been quoted saying, “We are very pleased with our growth during the year ended December 31, 2011. We have continued to benefit from our existing long-term supplier and customer relationships, and continued to make diligent efforts for consumer acceptance of products. Despite the uncertain global economic environment and a very stringent credit environment in 2011, we have remained growing and profitable. American Lorain maintains a growing and diverse network of customers throughout 26 provinces in China and 42 countries around the world. We continued to expand our brand name throughout China, and improved sales domestically by 16.3% during 2011.”
Whole-year of 2011 Financial Overview
- Total revenues of $213 million, up 16% over the previous year
- Total gross profit of $45 million, up 7% over the previous year
- Net income attributable to its stockholders was near $20 million, up 11% year-to-year
- Diluted earnings each share of $0.57, up from $0.55 in the previous year