Sino Agro earnings jump in transformative year

The company says its strategy to unlock aquaculture's potential is well underway.

Chinese agricultural firm Sino Agro Food reported a 73 percent jump in its net income in the financial year ended Dec. 31 to $115 million (€106.8 million).

This was up from $66.4 million (€61.7 million) in the previous year and was due to net income from discontinued operations (aquaculture) of $14.9 million (€13.8 million) and a net gain from the revaluations of its interest in Tri-Way Industries, amounting to $56.9 million (€52.8 million).

Revenue remained unchanged year-on-year and amounted to $342.9 million (€318.4 million). Revenue from the sale of goods jumped 8 percent from $251.4 million (€233.5 million) to $270.8 million (€251.5 million).

Gross profit for the year declined 9 percent to $83.9 million (€77.9 million) due to "adverse business conditions" in the first quarter of 2016, and accounting shifts due to project development.

In early March, the company completed the carve-out of its aquaculture operations, which it called a "major milestone."

It said it confirms its "strategy to unlock the value of its aquaculture business assets and plans for one of the world's largest land-based aquaculture projects."

In total, aquaculture operations in 2016 produced and sold approximately 12,000 metric tons of varied fish species and shrimp.

As of Dec. 31, the company had net working capital of $297.3 million (€276.1 million), which was down from $321.8 million (€298.8 million) the year before.

Stockholders' equity increased by 25 percent year-over-year to $604.8 million (€561.6 million) or $26.08 (€24.20) per share.

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