NEW YORK, May 14, 2007 (PRIME NEWSWIRE) -- AgFeed Industries, Inc. (OTCBB:AGFI) (website:http://www.agfeedinc.com), a leader in China's premix animal nutrition industry and the first such company publicly traded in the U.S., today announced record financial results for the first quarter of 2007.
The following are some of the key performance highlights for the three months ended March 31, 2007:
FIRST QUARTER 2007 FINANCIAL HIGHLIGHTS:
* Net Income up 179% to approximately $780,000 or $0.03 per fully
diluted share compared to the same period in 2006.
* Net Revenue increased to approximately $4.98 million, up 137%
compared to the same period in 2006.
* Gross Profit increased to approximately $1.5 million, up 95.5%
compared to the same period in 2006.
OPERATIONAL HIGHLIGHTS:
* Agfeed successfully closed a private placement with
institutional and individual accredited investors on April
29, 2007. A total of $6,830,259 was raised in the financing.
* Integration of Guangxi Huijie's business into AGFI an
acquisition which was completed in December 2006, was
successful. Huijie is expected to contribute significantly
to the Company's financial performance in 2007.
* We introduced the Airubao series of blended feed formulated
especially for baby pigs in collaboration with Dr. Bud Harmon
of Purdue University. We expect sales for this new product
line to increase substantially in 2007.
* On April 17, 2007, we announced that Mr. Nicholas Giordano,
a respected securities industry regulator, former CEO of the
Philadelphia Stock Exchange and former Chairman of the Stock
Clearing Corporation of Philadelphia and Philadelphia
Depository Trust Company, has joined AgFeed as a strategic
Advisor to advise the Company on growth matters.
MANAGEMENT COMMENTS:
Mr. Xiong Junhong, CEO of AgFeed commented, "Our results for the first quarter of 2007 reflect a strong start for the year. Pork sales in China are reaching record levels as wealthier Chinese consumers demand superior food products, specifically meat products. We expect that AgFeed will continue to provide reliable and safe premix animal growth solutions to China's animal feed industry which in 2006 reached approximately US$38 billion in annual sales. We continue to expand our distribution channels, develop new products and provide superior customer service."
Mr. Xiong continued: "During our second quarter, our growth strategy is to deepen our distribution channels. We have seen satisfactory results from these additional marketing initiatives. We are comfortable that we will reach our previous guidance of $36 million in annual sales targeting 20% net income margin for 2007. As we completed strategic financing with strong investor interest, we expect to see substantial growth in our 2nd quarter ending June 30."
About AgFeed Industries, Inc.
A U.S. company under U.S. corporate governance, AgFeed Industries is the first China-based animal feed and nutritional product company publicly traded in the U.S. Through its operating subsidiaries, which were founded in 1995 in China, AgFeed is a leading manufacturer, marketer and distributor of animal nutrition products targeting China's vast and growing animal feed market. AgFeed is the No. 1 player in the pre-mix market for pork by sales volume in China's eastern provinces. China's animal feed market was $34.6 billion in 2005 according to China Feed Industry Association.
Safe Harbor Statement
Certain forward-looking statements made on this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to the risks described in the company filings with the Securities and Exchange Commission.