American Lorain Corporation (NYSE Amex: ALN), an international processed foods company based in Shandong Province, People’s Republic of China, met its previously announced revenue goal of $146 million to $148 million for the 2009 year by reporting $146.8 million in net revenues, up 10.9% from $132.4 million in 2008. Net income for the year was $14.4 million, and EPS was $0.55.
4Q09 revenue was up 11% year-over-year to $62.9 million on growth driven by sales of Lorain(R)-branded convenient foods, which accounted for 26.2% of total revenues compared to 16.5% in 4Q08. 4Q09 EPS was $0.24.
In their earnings release, American Lorain also provided 2010 guidance: $182.0 to $190.0 million in revenues, or 24.1% to 29.5% organic growth for the year. The Company also provided net income guidance of $17.8 to $19.0 million, or 23.6% to 31.9% earnings growth year-over-year.
ALN is the largest producer and distributor of chestnuts in China. In addition to a variety of chestnut products, ALN develops, manufactures, and sells convenience foods, and frozen, canned and bulk food (FCB food). The company sells its food products through supermarket chains and wholesalers in China, Japan and South Korea and exports to more than 40 other countries. ALN has five state-of-art manufacturing facilities located at Junan, Luotian, Miyun and Dongguan with 21 production lines in total, capable of producing out between 10-50 products.
The company’s convenience food product line, which features ready-to-eat (RTE) and ready-to-cook (RTC) foods, generated revenues of $34.6 million, a 34.5% increase year-over-year.
ALN announced on March 30th that the total number of stores in China where Lorain(R)-branded products are sold reached 4,890–up 36.7% in a one-month period from the 3,578 retail stores reported in February 2010 and up from 2,000 stores in mid-2009. American Lorain plans to increase retail locations in 2010 into 8,000 locations.
ALN’s has maintained its steady growth despite the economic slowdown. The company plans to leverage the gains in its retail footprint to continue expanding awareness of the Lorain brand and capitalizing on the burgeoning opportunities in the convenience food market.
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