DGAP-News: Joyou AG with a good start to the financial year 2010
(firmenpresse) - Joyou AG / Quarter Results
31.05.2010 20:00
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Interim Report Q1 2010
- Revenues increased by 22.5% to EUR 43.8 million
- Gross margin up from 25.8% to 29.7%
- 253 new points of sale in China
- Positive Outlook for 2010
Hamburg, Germany, 31 May 2010. In the first quarter of 2010 the business
operations results of Joyou AG, a leading manufacturer for faucets and a
specialist for other sanitary ware products in China, continued to be
strong: Revenues increased by 22.5% to EUR 43.8 million in the first
quarter. The gross margin grew from 25.8% to 29.7% on a quarter to quarter
basis. These are the results of an improved product mix and the improved
brand awareness of Joyou.
'The last few months have been very exciting for Joyou with a series of
unprecedented events culminating in the successful IPO on the Frankfurt
exchange,' states Jianshe CAI, CEO of Joyou AG. 'Our reasons for the IPO,
and the timing are part of the strategic expansion of Joyou AG, and we see
this as the first of many steps towards meeting our long term goals,' he
continues.
Besides the successful listing the Prime Standard segment of the Frankfurt
Stock Exchange on 30 March 2010, Joyou managed to open 253 new points of
sale in China during the first three months of the year and therefore had a
network of 2,780 sales outlets throughout China as at 31 March 2010.
Opening new stores is one of Joyou AG's growth drivers. Joyou AG intends to
increase its number of stores to 4,500 by 2013.
500 Grohe stores planned
In 2009, the company was able to welcome Grohe AG as a strategic equity
partner. This also lead to the landmark signing of the exclusive
distributorship in China for their Asian product range. Joyou intends to
open some 500 sales outlets in 2010. The first Grohe stores have already
been opened.
Revenue growth and increased gross margin
Revenues increased from EUR 35.8 million in the first quarter of 2009 by
22.5% to EUR 43.8 million in the first quarter of 2010. Measured in RMB,
revenues increased by 29.7% during this period. This increase resulted from
a significant sales increase in kitchen products, shower products, and
nonbrass based sanitary ware products. Outsourcing continued to be an
important part of Joyou's integrated strategy for growth as it increases
Joyou's production flexibility, enhances product mix, and more importantly,
allows Joyou to focus its strength. As a result, Gross margin for the three
months period ended 31 March 2010 amounts to 29.7%, compared to 25.8% for
the comparable prior period.
The Group Earnings Before Interest and Tax (EBIT) amounted to EUR 7.9 in
the first quarter of 2010, increasing by 7.8% from EUR 7.3 in the three
month period ended 31 March 2009. EBIT was affected by the sponsoring of
'Pan-China Celebrity Performance Show' in the amount of EUR 1.3 million.
Due to a one-off interest expenses amounting to EUR 3.8 million, Profit
before Income Tax decreased from EUR 6.1 million to EUR 3.2 million.
Adjusted Profit before Income Tax grew by 11.3% to EUR 7.1 million
(adjusted for one-off non-cash interest expenses resulting from the IFRS
accounting treatment of preferred shares issued before the IPO).
Positive Outlook for 2010
Adjusted for input raw material price, expected improving gross margin, and
taking into account for higher selling expenses and cost associated with
maintaining the listed company status, the management board of Joyou
anticipates EBIT for 2010 to be around 19% to 20% on revenue of EUR 230
million to EUR 240 million.
About Joyou
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. Joyou is one of the leading single-brand
manufacturers of bathroom, kitchen and other faucets in China in terms of
revenues (according to BSRIA). Joyou has established an extensive
distribution network in China with 2,527 retail points of sales as of 31
December 2009.
Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian
Province in China. Joyou's five main product groups sold in its own brand
business are bathroom faucets, kitchen products, shower products as well as
other bathroom products and other faucets and sanitary hardware. In 2009,
Joyou realised group revenues of EUR 172.3 million, an operating profit
(EBIT) of EUR 39.0 million and a net profit of EUR 22.3 million employing
on average 2,529 persons.
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
materialize 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.
For further information, please contact:
Kirchhoff Consult AG
Dr Kay Baden, tel.: +49 40 60 91 86 0, baden(at)kirchhoff.de
Janina Wismar, tel.: +49 40 60 91 86 50, janina.wismar(at)kirchhoff.de
or visit the company website at: http://www.joyou.com
31.05.2010 20:00 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: Joyou AG
Chilehaus A, Fischertwiete 2
20095 Hamburg
Deutschland
Phone:
Fax:
E-mail: ir(at)joyou.net
Internet: www.joyou.de
ISIN: DE000A0WMLD8
WKN: A0WMLD
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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Datum: 31.05.2010 - 20:00 Uhr
Sprache: Deutsch
News-ID 21717
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