Mr. Weibing Lu, Chairman and Chief Executive Officer of Skystar (SKBO), commented, "Skystar is pleased with unaudited first quarter results seeing increases in both year over year top and bottom line profitability.
Skystar's revenue growth was driven by Veterinary medicine which grew 40% year over year with solid contributions coming from Skystar's other segments.
The increased utilization rates for Skystar's
veterinary medication production facility were realized following the receipt of more product permits from the Ministry of Agriculture.
Skystar's YoY gross margin compression from 47% to 41% for the current reporting quarter was anticipated due to increased production coming from the lower margin veterinary medications line for which the Company recently received some product permits, and increased manufacturing overhead as we successfully completed our Huxian vaccine plant construction.
We expect for manufacturing to continue to scale up throughout the year in preparation for the majority of Skystar's
sales coming after the first quarter coinciding with China's celebration of the Lunar New Year holiday.
expects a steady growth trajectory once all of its manufacturing plants can be completed and brought to full utilization rates," concluded Mr. Lu
has reported a strong start to the fiscal 2014 reporting cycle.
The Company believes that it has built a strong framework as the only U.S. listed animal pharmaceutical play in China.
The completed and newly GMP certified manufacturing facility in Huxian gives Skystar
the ability to produce veterinary medicines and vaccines utilizing modern batch processes, increasing production efficiencies and volume of product produced.
More importantly, the Company has been able to launch and expand infrastructure within the tougher regulatory framework of China's new requirements for GMP production facilities.
These modern manufacturing standards and rules help to ensure the safety of China's food supply as agriculture and animal husbandry standards in China move towards modern standards and industrialization," concluded Mr. Lu
Mr. Weibing Lu, Skystar's chairman and chief executive officer, will host the call, which will be webcast live.