Home / Knowledge / News / Textiles / Winner Medical reiterates FY 2011 revenue guidance of $138-150 mn
Winner Medical reiterates FY 2011 revenue guidance of $138-150 mn
11
Feb '11
Winner Medical Group Inc, a leading manufacturer of medical dressings, medical disposables and non-woven fabric made from 100% natural PurCotton products in China, reported consolidated financial results for the first quarter ended December 31, 2010.

Mr. Jianquan Li, Chairman and Chief Executive Officer of Winner Medical, commented, "During the first quarter of fiscal year 2011, cotton prices continued to increase and these raw material price increases were shifted to our customers. Early in the quarter, some customers chose to delay purchases and reduced their inventory while monitoring cotton price trends.

“Starting in November, having depleted the majority of their inventory, our customers increased their purchases again, resulting in December sales being one of the strongest months that Winner Medical has recorded in recent years. I believe the medical dressings and medical disposables markets have now largely accepted the cotton price increases from last year and we expect positive margin and sales growth for the remainder of 2011."

First Quarter 2011 Unaudited Financial Results

Winner Medical reported net sales of $33.7 million, an increase of 13.2% compared to the same period last year. The increase was mainly attributable to higher average sales prices and increased sales orders from Chinese, North American and South American customers. Export sales to North and South America remained robust, increasing 50.2% year over year, driven by increased orders from American and Brazilian clients who recognized Winner Medical's high quality products and timely delivery capabilities.

Orders in Europe remained stable year-over-year as customers in Sweden increased purchases while clients in Greece and Spain postponed orders as a result of the debt crisis. Sales were up 1.0% in China, with steady improvements in November and December. Strong sales of medical dressings and disposables were offset by lower sales of protective gowns and face masks, which were unusually strong in the first quarter of 2010 due to the H1N1 virus outbreak.

Cost of goods sold increased 19.0% to $24.2 million in the first quarter of fiscal 2011, from $20.4 million in the first quarter of fiscal 2010. Cost of goods sold as a percentage of net revenues were 71.9% and 68.3% for the first quarter in fiscal 2011 and 2010, respectively. This increase was mainly attributable to increased raw material prices. To minimize the impacts brought by increased cotton prices, the Company increased its selling price progressively and purchased cotton futures contracts to hedge against the volatility of cotton prices.

Gross profit increased 0.5% to $9.5 million compared to the first quarter of fiscal 2010. Gross margin decreased to 28.1% as compared to 31.7% in the first quarter of fiscal 2010. The decrease in gross margin was mainly attributable to time lag for customers to accept higher selling prices, especially in the months of October and earlier November 2010, as well as lower sales of protective gowns and face masks, which were unusually strong in the first quarter of 2010 due to the H1N1 virus outbreak.


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search