DGAP-News: Joyou AG: Strong revenue growth and accelerated store openings
(firmenpresse) - Joyou AG / Key word(s): Quarter Results
22.11.2010 08:30
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Hamburg, 22 November 2010. In the first nine months of 2010 Joyou AG, a
leading manufacturer for faucets and a specialist for other sanitary ware
products in China, achieved important operational and financial targets.
Compared to the first nine month of 2009 revenues increased by 36% to EUR
174.9 million. This increase resulted from a significant sales increase in
all segments.
In the 9 month 2010 reporting period the company opened 989 new stores.
Year-on-year this represents a growth rate of 146%. Joyou has achieved a
higher than expected number of new store openings and has nearly reached
the full-year 2010 target of 1,000 new stores. As at 30 September 2010 the
retail network consisted of 3,516 sales outlets throughout China. The
company intends to further increase its number of stores to 4,500 by 2013.
Gross profit grew in the first nine months by 34.1% to EUR 47.0 million. As
a result of sales promotions at the beginning of the year coupled with a
slight impact from a cost increase in raw materials and labour, gross
margin for the first nine months of 2010 amounted to 26.8%, compared to
27.2% for the comparable previous period.
Due to increased spending on continued strong store openings and marketing
in the context of the rapid expansion of its retail network and brand
building, Joyou's selling and distribution expenses were EUR 12.3 million
in the first 9 months 2010, representing an increase of 168%. As a result,
EBIT for the first nine months 2010 was EUR 29.9 million, up 7.6% compared
to first nine months of 2009.
'Key to Joyou's growth momentum are the brand-building activities and the
expansion of the retail network. We have delivered on our growth strategy
announced during the IPO in March and are very confident that we can
further exploit the opportunities of the growing sanitary ware market in
China', states Jianshe CAI, CEO of Joyou AG.
Based on the business development in the first nine months of the financial
year 2010 and the expected development in Q4 2010, the management of Joyou
has updated its guidance for the full financial year 2010: The guidance on
2010 sales remains unchanged at EUR 230 million to EUR 240 million despite
a substantial appreciation of the Euro to the RMB experienced in recent
months. The revised EBIT guidance for the full financial year 2010 amounts
to EUR 40 million to EUR 42 million reflecting the substantial marketing as
well as selling and distribution expenses incurred to further build Joyou's
distribution network.
The full Q3 2010 report of Joyou AG is available on the website at
www.joyou.com/ipo/publications.asp
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. In 2009, Joyou was 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
or visit the company website at: http://www.joyou.com
22.11.2010 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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 München, Berlin, Düsseldorf, Stuttgart
End of Announcement DGAP News-Service
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Datum: 22.11.2010 - 08:30 Uhr
Sprache: Deutsch
News-ID 32689
Anzahl Zeichen: 0
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Kategorie:
Business News
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