Joyou AG presents solid growth results for 9M 2012
9M 2012 Report
- In a tough domestic market, revenues increased to RMB 2,005 million, a growth of 2.9% and due to favourable currency effects, a growth of 15.7% to EUR 246.1 million
- Gross Profit increased to EUR 68.2 million with a gross margin of 27.7%
- EBIT grew to EUR 37.0 million, bringing EBIT margin up to 15.0% from 14.7%.
- As a direct result of the new ceramics, Sales development of Ceramics and Bathtubs amounts to 56.6 %
- 174 new retail stores since January 2012
Joyou AG, a leading bathroom solution supplier in China, achieved improved financial results in the third quarter of 2012. Despite the difficult business environment, the group revenues increased by 15.7% to EUR 246.1 million or 2.9% in RMB terms during the reporting period, while the domestic sales grew even more by 22.3% in Euro terms or 8.9% in RMB terms. This development resulted from a significant sales increase in the following core growth segments: Ceramics and Bathtubs up 56.6%, Bathroom Cabinets up 28.2% and Kitchen Products up 21.2%. Gross Profit margin increased from 26.8% to 27.7% mainly as a result of increased average selling prices, as the group maintains its brand positioning.
The operating profit (EBIT) rose by 18.3% to EUR 37.0 million. Due to tighter cost control, especially in regards to administrative expenses and a higher gross profit margin of 27.7%, the EBIT margin improved to 15.0% (9M 2011: 14.7%) during the nine-month period.
Joyou will continue to focus on increasing sales per store, research and design, international sales, cost management and the expansion of project business in new markets in China and abroad represent a future perspective.
Joyou anticipates it will meet its target of 200 retail store openings by the end of 2012. Since January this year, the company has already managed to open 174 new Joyou branded retail stores, bringing its total network retail stores to 4,072 throughout China as of 30 September 2012. The majority - 73% - of the new retail stores are located in medium and smaller-sized cities. Joyou focuses on them in particular because the cities' local growth rates have been increasing at a fast pace during the recent years and are the foundation of the increases in urbanisation. Opening new retail stores in the highest possible growth areas is part of Joyou's strategy to expand and enlarge its costumer base. Furthermore, two additional experience centres have been opened to demonstrate and sell the latest Joyou products.
The company expects that the market situation in the current year will remain challenging; nevertheless Joyou gives a positive outlook for 2012 and expects its growth to outpace that of the market with improved operating profit.
The full 9M 2012 Report 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.
Joyou (ISIN DE000A0WMLD8, WKN A0WMLD, Ticker Symbol JY8) designs, produces and mainly sells products for the entire bathroom solution 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 2011 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 2012). Joyou has established an extensive distribution network in China with 4,072 retail points of sales as of 30 September 2012.
Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian Province in China. Joyou sells mainly under its own brand name, and altogether has nine product groups in its business portfolio; 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.