Joyou AG: Further growth of revenues and operating income

Financial Results 2012

(PresseBox) ( Hamburg, )
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- Revenues increased by 14.8 per-cent to 329.6 million Euros and by 3.8 per-cent in Renminbi terms
- EBIT grew by 12.3 per-cent amounting to 50.8 million Euros, representing an EBIT margin of 15.4 per-cent
- Gross profit margin improves to 28.4 per-cent
- Significant sales development in core growth segments

Joyou AG, a leading bathroom solution provider in China, continues on its sustainable growth path. In the challenging environment of the financial year 2012 group sales increased by 14.8 per-cent year-on-year in Euro terms to 329.6 million Euros and operating profit increased by 12.3 per-cent to 50.8 million Euros representing an EBIT margin of 15.4 per-cent. In Renminbi terms group sales increased by 3.8 per-cent. Domestic China sales grew by 22.0 per-cent in Euro terms to 297.6 million Euros and in Renminbi terms domestic sales also showed double-digit growth of 10.2 per-cent. Mainly due to a higher corporate tax rate in 2012, net income increased at a lower rate of 3.3 per-cent to 39.8 million Euros.

Growth drivers in the financial year 2012 were the domestic market China, representing about 90 per-cent of total sales, and many of the core product segments. Several core product segments showed a positive development with sales of Ceramics and Bathtubs up 48.9 per-cent and Kitchen products up 14.8 per-cent.

The aim of Joyou is to produce more and more products entirely in-house and therefore ensure precise quality controls, perfectly coordinated workflows and attractive margins. Therefore the company continues to invest in its production facilities. In 2012 the main investment projects were the expansion of the Meiyu ceramics facility, the new Luncang plastics facility and the upgrade of the faucet production lines at the Luncang facility.

Joyou maintains a strong balance sheet: Equity increased from 304.4 million Euros as of 31 December 2011 to 341.5 million Euros as of 31 December 2012. As a result the equity ratio increased from 74.9 per-cent in 2011 to 75.7 per-cent in the financial year 2012.

Future growth strategy

The company's future growth strategy comprises international sales, project development sales and on increasing sales per store. Joyou successfully supported Grohe in introducing Joyou-branded products to the European market in 2012. Furthermore, the international sales activities with Grohe resulted in new clients in Mexico for Joyou branded products as well as a substantial white-label supplier in the USA.

"I am very proud that we have exceeded analysts' expectations with our financial results 2012. Even though the current market situation is challenging, I expect that we can keep on growing faster than the market while enhancing our global footprint," says Mr. Jianshe Cai, CEO. Based on its strategy, Joyou will continue to build on macro-economic growth drivers - particularly urbanisation and the growing consumer class - and on its market leading position to ensure profitable future growth.

The full Annual Report 2012 of Joyou AG is available on the website at www.joyou.com.

Disclaimer concerning prognoses

This communication contains forward-looking statements. Forward-looking statements are statements that are not historical facts instead they reflect Joyou's current views and expectations and the assumptions underlying them about future events. Forward-looking statements are subject to many risks and uncertainties. If any of such risks and uncertainties materialise or if the assumptions underlying any of Joyou's forward-looking statements are proving to be incorrect, Joyou's actual results may be materially different from those expressed or implied by such forward-looking statements. Joyou does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.
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