Joyou AG: Profitable growth in the first nine months 2012
Preliminary results 9M 2012
- Revenues increased by 15.7% to EUR 246.1 million
- Gross Profit increased to EUR 68.2 million, gross margin of 27.7%
- EBIT grew by 18.3% to EUR 37.0 million, bringing EBIT margin to 15.0%
Joyou AG, a leading bathroom solution supplier in China, achieved improved financial results in the first nine months of 2012. In comparison to the same period in 2011, the revenues grew by 15.7% to EUR 246.1 million. This increase resulted from a significant sales increase in Ceramics and Bathtubs, Bathroom Cabinets, Kitchen Products, the company's core business segments. Measured in RMB, revenues increased by 2.9% during the reporting period.
Due to increased ASPs (Average Selling Prices), the gross margin reached 27.7% while the gross profit grew to EUR 68.2 million. EBIT experienced an increase of 18.3% to EUR 37.0 million, representing an improved EBIT margin of 15.0% after 14.7% in the comparable period of the previous year.
Joyou will remain to focus on research and design to develop new products, features and technologies to extend its marketing edge. Also, the expansion of project business in new markets in China and abroad represent a future perspective. The company expects the market situation in the current year will remain challenging; nevertheless Joyou gives a positive outlook for 2012 and expects its growth to continuously outpace that of the market with improved operating profit. Joyou anticipates to meet its target of 200 retail store openings by the end of 2012.
The full 9M 2012 Report of Joyou AG will be published on 15 November 2012.
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.
Joyou (ISIN DE000A0WMLD8, WKN A0WMLD, Ticker Symbol JY8) designs, produces and sells faucets and other sanitary ware products in China under its brand name "Joyou" and is also engaged as a OEM/ODM-manufacturer for international brands and trading companies in the United States and Europe as well as other emerging markets. In 2010 Joyou was one of the leading single-brand manufacturers of bathroom, and other faucets in China in terms of revenues (according to BSRIA's China Bathroom Study 2011). Joyou has established an extensive distribution network in China with 4,033 retail points of sales as of 30 June 2012.
Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian Province in China. Joyou's nine main product groups sold in its own brand business are Bathroom Faucets, Kitchen Products, Shower Products, Ceramics and Bathtubs, Bathroom Cabinets, Bathroom Accessories, Other Faucets and Sanitary Hardware, Copper and Semi-Finished Components, Grohe Business. In 2011, Joyou realised group revenues of EUR 287.1 million, an operating profit (EBIT) of EUR 45.3 million and a net profit of EUR 38.5 million.