SkyPeople Fruit Juice Inc, a producer of fruit juice concentrates, fruit juice beverages and other fruit-related products, has reported 19% decline in revenue to $10.4m for the second quarter ended 30 June 2013 compared to $12.8m in the prior year period.

The decrease was primarily due a drop in sales of kiwi-related products, concentrated pear juice and other products, which was partially offset by an increase in revenue generated from sales of the apple-related products and fruit juice beverages.

Revenue from the fruit juice beverages rose 35% to $8.6m from $6.4m for the same period of 2012, primarily due to market share gains attributable to the company’s efforts to expand its sales channel.

Consolidated gross profit was $3.4m, a decrease 19%, from $4.2m for the same period of 2012, primarily due to a reduced level of gross profit generated from its concentrated pear juice and apple-related products segments.

Gross profit of the fruit juice beverages increased to $3.1m, an increase of 49%, from $2.1m for the same period of 2012.
Net income attributable to SkyPeople Fruit Juice was $0.7m for the second quarter of 2013, a decrease of 72% as compared to $2.4m in the same period last year.

CEO Hongke Xue said the company will increase production of concentrated fruit juice products in the third quarter to improve sequential performance.

"A bright spot in the second quarter was the continued strong performance of our fruit juice beverages segment, a key growth area in which we have invested substantially," Xue added.

"We announced early in the second quarter that we entered into an agreement with Managing Committee of Mei County National Kiwi Fruit Wholesale Trading Center to establish kiwi processing facilities which we believe has excellent potential and will strengthen our competitive positioning in this important product segment.

"Our growth initiatives, including our project to develop orange products in Hubei Province, are a key element of our strategic plan is to further diversify our product platform in order to mitigate both the regional and seasonal cyclicality of our products."