the sales dropped and manufacturing costs increased because they...

the sales dropped and manufacturing costs increased because they are revamping the adult dairy segment brands which makes up a large portion of the china sales. the bubs portfolio sales, more specifically the infant formula, are increasing nicely - they have the highest margin and are the most profitable products which is good to see. hopefully all the synergies within the supply chain will be realised over the next 12 months so manufacturing costs can lean up. same point as last year sales are up 75% - and with the increased inventories and expansion into new markets lets hope it is upwards from here