Winner Medical Total net sales revenue grows by 29.83%
Winner Medical Group Inc reported consolidated financial results for the third quarter of fiscal year 2008, ended June 30, 2008. The Company's results are detailed in its form 10-Q, filed with the United States Securities and Exchange Commission.
Third Quarter 2008 Highlights:
• Total net sales revenue grew 29.83% over the third quarter of fiscal 2007 to $23.07 million
• Gross profit increased by 36.20% over the third quarter of fiscal 2007 to $5.98 million
• Net income increased by 19.63% over the third quarter of fiscal 2007 to $1.74 million
• Net income per share for the third quarter of 2008 was $0.04 per basic and diluted share, compared to $0.03 per basic and diluted share for the third quarter of fiscal 2007
Jianquan Li, Chairman and Chief Executive Officer of Winner Medical, commented, "We are pleased to announce an encouraging quarter, with a nearly 30% increase in revenues and an improved net margin year over year, despite the negative impact of the exchange rate and inflation in China."
"Our medical care, wound care and home care products continued to lead the growth, particularly in the European and US markets. Our performance is indicative of successful progression of our strategy to focus on sales of our higher margin products to the leading international branded company customer segment, as well as our ability to increase prices across the majority of our product lines to partially offset adverse currency movements. Additionally, we also successfully executed on our strategy to continuously expand our margin profile by focusing on up-selling our products to existing clients in Europe," Chairman Li remarked.
Chairman Li continued, "We recorded a gradual sequential improvement in PurCotton product line sales in the third quarter. We believe that PurCotton will be a medium- to long-term growth driver for Winner Medical and will continue our investments in the production and marketing of the product."
Third Quarter 2008 Unaudited Financial Results:
Revenue: Winner Medical reported net sales revenue of $23.07 million, a 29.83% increase over the third quarter of fiscal 2007. Sales in Europe and the United States were particularly strong, with continuous increasing orders from existing clients.
Revenue from Europe was $10.34 million and revenue from the US was $4.44 million for the three months ended June 30, 2008, increases of 55.47% and 41.50%, respectively, compared to the same period last year. Europe and U.S. accounted for 44.82% and 19.26% of total revenue for Winner Medical in the third quarter.
Gross Profit: For the third quarter of fiscal 2008, gross profit was $5.98 million, an increase of 36.20% over $4.39 million in the same period of fiscal 2007. Gross margin was 25.91%, an increase over the 24.70% achieved in the third quarter of fiscal 2007. The gross margin improvement was mainly due to product price increases, unit product cost decrease asa result of better economies of scale, and improved production management, which enable the Company to reduce material waste.