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Fuling Global Inc. Reports Full Year 2017 Financial Results

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Fuling Global Inc. Reports Full Year 2017 Financial Results

PR Newswire

Continued Strong Growth in Both Revenues and Volume, with Increases of 21.3% and 17.7%, Respectively, in 2017

ALLENTOWN, PA., March 30, 2018 /PRNewswire/ -- Fuling Global Inc. (NASDAQ:FORK) ("Fuling Global" or the "Company"), a specialized producer and distributor of plastic serviceware, with precision manufacturing facilities in both the U.S. and China, today announced its financial results for the twelve months ended December 31, 2017.



For the Twelve Months Ended December 31,

($ millions, except per share data)


2017


2016


% Change

Revenues


$127.3


$104.9


21.3%

Gross profit


$26.1


$25.2


3.2%

Gross margin


20.5%


24.1%


-3.6 percentage points

Operating income


$7.6


$8.5


-10.8%

Operating margin


6.0%


8.1%


-2.2 percentage points

Net income attributable to Fuling Global


$6.3


$7.9


-21.0%

Diluted earnings per share


$0.40


$0.50


-21.1%

 

  • Revenues increased by 21.3% to $127.25 million for the year of 2017 from $104.88 million for the prior year, as a result of the combined effect of increases in both sales volume and blended average selling prices ("ASP").
  • Total sales volume increased by 17.7% to 50,284 tons for the year of 2017 from 42,723 tons for the prior year. The increase in sales volume was across all product categories. Blended ASP also increased by 3.1% to $2.53 per kilogram for the year of 2017 from $2.45 per kilogram for the prior year.
  • Gross profit increased by 3.2% to $26.05 million for the year of 2017 from $25.24 million for the prior year. Gross margin decreased by 3.6 percentage points to 20.5% for the year of 2017 from 24.1% for the prior year. The decrease in gross margin was primarily due to increase in the price of raw materials, particularly Polypropylene.
  • Net income attributable to Fuling Global was $6.28 million, or $0.40 per basic and diluted share, for the year of 2017, compared to $7.94 million, or $0.50 per basic and diluted share for the prior year. The decrease in net income attributable to Fuling Global was mainly due to the increase in total operating income and the decrease in subsidy income that more than offset the increase in gross profit.

"2017 proved to be another strong year for Fuling Gobal with both revenues and shipment volume reaching record high. The growths were across all major geographical regions and all product categories," said Mr. Xinfu Hu, Chief Executive Officer of Fuling Global.

Ms. Guilan Jiang, Chairwoman of Fuling Global, further commented, "With continuing order momentum and increased manufacturing capacity, we are increasingly confident in our ability to further extend our top-line growth streak in 2018 and beyond. As we continue to face uncertainty in market factors, particularly pricing environment for raw materials and our final products, we look for ways to further improve our productivity and profitability through process optimization and cost control in 2018."

Fiscal Year 2017 Financial Results

Revenues

For the year of 2017, total revenues increased by $22.37 million, or 21.3%, to $127.25 million from $104.88 million for the prior year. The increase in total revenues was a combined result of increases in both sales volume and blended ASP.

Overall sales volume increased by 7,561 tons, or 17.7%, to 50,284 tons for the year of 2017 from 42,723 tons for the prior year. The increase in sales volume was across all product categories. Sales volume of cutlery increased by 2,310 tons, or 8.5%, to 29,638 tons for the year of 2017 from 27,328 tons for the prior year. Sales volume of straws increased by 1,590 tons, or 35.8%, to 6,025 tons for the year of 2017 from 4,435 tons for the prior year. Sales volume of cups and plates increased by 2,516 tons, or 31.1%, to 10,602 tons for the year of 2017 from 8,086 tons for the prior year. Sales volume of other products increased by 1,145 tons, or 39.8%, to 4,020 tons for the year of 2017 from 2,875 tons for the prior year.

Blended ASP increased by $0.08 per kilogram, or 3.1%, to $2.53 per kilogram for the year of 2017 from $2.45 per kilogram for the prior year. The increase in blended ASP was mainly related to cutlery and other products and partially offset by decrease in ASP for straws and cups and plates. ASP of cutlery increased by $0.12 per kilogram, or 6.1%, to $2.12 per kilogram for the year of 2017 from $2.00 per kilogram for the prior year. ASP of straws decreased by $0.24 per kilogram, or 6.9%, to $3.19 per kilogram for the year of 2017 from $3.43 per kilogram for the prior year. ASP of cups and plates decreased by $0.20 per kilogram, or 5.9%, to $3.24 per kilogram for the year of 2017 from $3.44 per kilogram for the prior year. ASP of other products increased by $0.19 per kilogram, or 7.4%, to $2.69 per kilogram for the year of 2017 from $2.51 per kilogram for the prior year.

The increase in revenues was across all product categories. Revenues from cutlery sales increased by $8.23 million, or 15.1%, to $62.85 million for the year of 2017 from $54.62 million for the prior year. Revenues from straws sales increased by $4.03 million, or 26.5%, to $19.25 million for the year of 2017 from $15.22 million for the prior year. Revenues from cups and plates sales increased by $6.49 million, or 23.3%, to $34.33 million for the year of 2017 from $27.84 million for the prior year. Revenues from other products sales increased by $3.62 million, or 50.2%, to $10.83 million for the year of 2017 from $7.21 million for the prior year. Cutlery, straws, cups and plates, and other products accounted for 49.4%, 15.1%, 27.0%, and 8.5% of total revenues for the year of 2017, compared to 52.1%, 14.5%, 26.5%, and 6.9% for the prior year, respectively.


For the Twelve Months Ended December 31,



2017



2016



Y/Y Change



Revenues
($'000)


% of
Total



Revenues
($'000)


% of
Total



Amount
($'000)


%

Cutlery

$

62,846


49.4%


$

54,619


52.1%


$

8,227


15.1%

Straws


19,248


15.1%



15,219


14.5%



4,029


26.5%

Cups and
plates


34,330


27.0%



27,835


26.5%

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