PurCotton business is performing well at Winner Medical
Winner Medical Group Inc., a leading manufacturer of medical dressings, medical disposables and non-woven PurCotton materials for the medical and consumer products industries in China, reported that third quarter fiscal year 2010 revenue year-on-year increased 27.0%, to $30.9 million, net income increased 10.1% to $3.4 million and a sales of PurCotton products year-on-year increased 114.0%, to $2.6 million.
"Winner Medical delivered solid third-quarter operating results under the shadow of the European debt crisis and an increased in raw material prices. Our operating numbers were benefited from accelerating growth in the North and South American and European markets, as well as a continuing increase in sales for PurCotton products," said Jianquan Li, Chairman and Chief Executive Officer of Winner Medical. "
Our PurCotton business is performing well. In addition to opening several new retail stores, we are in the initial phase of launching Business-to-Customer online shopping platform to complement our brick-and-mortar business. We continue to add talents across all aspects of the business, including store management, brand building, and e-commerce. These investments position our PurCotton business for robust long-term top and bottom line growth."
"Looking forward, we will continue to reshape and strengthen our portfolio, by maintaining good relationships with existing large foreign clients, such as Cardinal Health Inc. and Covidien Plc., and expand our distribution network for our medical products sales in China through distributors and direct to hospitals, as a result of China's medical reform, while accelerating sales of PurCotton brand products through retail sales in our chain stores and supermarkets, on-line sales and wholesale distribution sales to large customers. As more consumers around the world buy more products that better protect their health and the environment, our PurCotton products are well positioned to meet their needs. We expect to fund these key strategic investments through our strong cash flows," Mr. Li said.
Third Quarter FY2010 Highlights
Winner Medical reported net sales of $30.9 million for the third quarter of 2010, a 27.0% increase from $24.4 million in the third quarter of 2009. This increase was mainly driven by increased sales orders from North and South American and European customers, as well as increased PurCotton products sales.
Net sales to North and South American customers increased approximately 58.1% to $7.2 million in the third quarter of 2010, from $4.6 million in the third quarter of 2009, as a result of more orders from existing customers, such as Cardinal Health Inc. and Covidien Plc. The net sales to customers in Europe were $12.4 million in the third quarter of 2010, an increase of 27.2%, compared to $9.8 million during the same period last year. PurCotton products sales increased approximately 114.0% to $2.6 millionin the third quarter of 2010 from $1.2 million in the third quarter of 2009.