Nutrastar Releases Second Quarter 2013 Results

HARBIN, China, Aug. 12, 2013 /PRNewswire-FirstCall/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), health beverages and organic and specialty foods, today announced its financial results for the quarter and six months ended June 30, 2013.

Three Months Ended June 30, 2013 Financial Highlights

• Net revenue increased 18.3% to $11.87 million, compared to $10.04 million in the three months ended June 30, 2012.
• Gross profit increased 20.9% to $9.14 million, up from $7.56 million in the comparable 2012 quarter.
• Gross margin was 77% compared with 75.4% in the second quarter 2012.
• Net income was $5.96 million, up 21.7% from $4.90 million recorded in Q2 2012.
• Basic and diluted EPS were $0.37 and $0.35, respectively, with 15.86 million basic and 16.99 million diluted shares outstanding.

Six Months Ended June 30, 2013 Financial Highlights

• Net revenue increased 14.1% to $19.29 million, compared to $16.90 million in the six months ended June 30, 2012.
• Gross profit increased 16.9% to $14.78 million, up from $12.65 million in the comparable 2012 six month period.
• Gross margin was 76.6%, compared to 74.8% in the first six months of 2012.
• Net income was $9.38 million, up 19.4% from $7.85 million in the first half of 2012.
• Basic and diluted EPS were $0.58 and $0.55, respectively, with 15.86 million basic and 16.99 million diluted shares outstanding.

Management Commentary

"In line with expectations, our financial results showed continued top-line growth, coupled with the robust progression of our bottom line. Gross margin expanded in the second quarter by 1.6% as a result of economics of scale due to increased capacity as well as an attractive product mix. The majority of revenues, roughly 74% in Q2, stemmed from our higher margin commercially cultivated Cordyceps, which saw sales hit $8.8 million, up 17.1% year-over-year. Premium functional health beverages contributed $2.5 million in the quarter, up 26.7% as a result of prior company-led marketing initiatives specifically designed to grow this market," stated, Ms. Lianyun Han, CEO of Nutrastar.

Ms. Han continued, "As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2013 revenue guidance. Demand for our premium consumer products remains steadfast and robust, especially among the affluent and elderly population. We remain committed to expanding our market, growing our brand awareness and bringing more products into the hands of health-conscious consumers. To this end, we plan to embark on new, fresh campaigns geared towards better informing and promoting the health benefits of our premium consumer products, especially our on-the-go functional health beverages and instant soluble drinks, which we believe will be key market drivers in the future. We look forward to updating our shareholders and the investment community on our progress on these initiatives in the coming months. Nutrastar is committed to full disclosure, we encourage any interested investor to visit our Cordyceps production facilities and experience the company's products firsthand."

Financial Guidance

Based on management's current expectations, the Company maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase over last year.

Nutrastar is providing the above guidance as a convenience to investors and assumes no obligation to update it.

Request for Call with Management

Investors are invited to schedule a call with Nutrastar's management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule.

For more information regarding Nutrastar's financial performance during the quarter ended June 30, 2013, please refer to the Quarterly Report Form 10-Q to be filed with the Securities and Exchange Commission on or about August 12, 2013.

About Nutrastar International Inc.

Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company, with 330 employees, including 21 in R&D and 149 in sales and marketing, is located in Harbin, with its main operations in Heilongjiang Province. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: [email protected]

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Safe Harbor Statement

This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies.  All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, financial guidance, and underlying assumptions and other statements that are other than statements of historical facts.  These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact: 
 

Howard Gostfrand
American Capital Ventures
Tel: +1-305-918-7000
Email: [email protected]

SOURCE Nutrastar International Inc.