The company has registered a 50 percent rise in the gross profit top $3.9 million and gross profit margin was 42.3 percent, up from 33 percent in the first quarter of 2007. According to the company the main reason behind such escalation in profit was due to higher selling prices for tilapia products and increased sales volume. Gross profit margin for the Company’s marine bio segment was 76 percent for the three months ended March 31, 2008, compared to 82 percent in the first quarter of 2007. The profit margin decreased in the first quarter of 2008 because of a different sales mix of lower margin products.
The company told that the EBITDA at $1.1 million, up from $62,207 in the first quarter of 2007. Norbert Sporns, President and CEO of HQ Sustainable Maritime Industries, Inc., told that the company was very fortunate not to have been more severely affected by the severe winter weather that China experienced at the end of 2007 and beginning of 2008. he said that the tilapia producers in mainland China suffered large losses but the aquaculture production and processing part of HQS was not harmed and led the company to year on year sales growth.
Sporns also opined that HQS will continue to fulfill its vertical integration strategy, which will allow us greater control over high quality production, processing and distribution.
