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SkyPeople Fruit Juice Q3 revenue $10.6 million, down 70%

Staff writer |
SkyPeople Fruit Juice announced its financial results for the third quarter ended September 30, 2015.

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Revenue was $10.6 million, a decrease of 70% as compared to $34.8 million for the same period of 2014. This decrease was due to a decrease in sales from all of the company's product segments.

Sales from apple related products were nil for the three months ended September 30, 2015, as compared to $5.6 million for the same period of 2014.

During the current period, the company did not sell apple-related products due to the relatively low gross profit margin of apple-related products. Historically, apple-related products had the lowest gross profit margin among all of our product lines.

Sales from concentrated kiwifruit juice and kiwifruit puree were $4,000 for the three months ended September 30, 2015, as compared to sales of $357,000 for the same period of 2014. During the three months ended September 30, 2015, the company sold a very limited amount of kiwi-related products mainly due to an unexpectedly low amount of raw material supplies.

Sales of concentrated pear juice were $2.5 million for the three months ended September 30, 2015, a 45% decrease from sales of $10.5 million for the same period of 2014.

For the third quarter of 2015, the company sold approximately 2,649 tons of concentrated pear juice, a 65% decrease from the 7,644 tons of concentrated pear juice sold in the same period of 2014. The decrease of revenue generated from concentrated pear juice was mainly due to the decreased amount of concentrated pear juice sold.

Sales from our fruit juice beverages segment were $8.0 million for the three months ended September 30, 2015, a 45% decrease from sales of $14.5 million for the same period of 2014.

The decline in revenues during the current period is attributable to consumers' having increased their purchases through on-line home deliveries from the company's competitors and a decrease in in-store retail purchases of the company's products.

Revenue from our fresh fruits and vegetables in China were nil for the three months ended September 30, 2015 as compared to $3.9 million for the same period of 2014.

Revenue from other products were nil the three months ended September 30, 2015 as compared to $0.01 million for the same period of 2014. The amount of sales of other products is expected to be unstable and is generally not indicative of our future sales of other products.

Gross profit was $3.9 million for the three months ended September 30, 2015, a 62% decrease from gross profit of $10.2 million for the same period of 2014 primarily due to the decreased amount of gross profit from all of our product lines.

The consolidated gross profit margin for the current quarter was 37% as compared to 29% for the same period of 2014. This higher gross margin was attributable to a larger proportion of sales generated from the concentrated pear juice and fruit juice beverages segments.


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