Goodbaby International 2020 Annual Net Profit Increases by 27.3% to HK$257.9 million
Focus on Profitable Core Strategic Brands and Product Innovation to Fuel Future Growth
HONG KONG, March 24, 2021 /PRNewswire/ — Goodbaby International Holdings Limited ("Goodbaby International" or the "Company", HKEX stock code: 1086, together with its subsidiaries, the "Group"), a globally leading parenting products company, announced its annual results for the year ended 31 December 2020 (the "Period"). During the Period, revenue of the Group was recorded at approximately HK$8,305.0 million (2019: HK$8,777.1 million). Attributable to proactive commercial management actions, aggressive control on operating expenses and optimization of financing costs, the Group achieved an increase of 10.3% (21.8% on a non-GAA P basis) to approximately HK$430.0 million (2019: HK$389.9 million) in the reported operating profit, and an increase of 27.3% (38.5% on a non-GAAP basis) in the reported net profit to approximately HK$257.9 million (2019: HK$202.6 million).
CYBEX achieved strong growth momentum, sustained profitability and market share increase
During the Period, CYBEX brand’s global revenue increased by 8.1% (7.0% on a constant currency basis) to approximately HK$2,656.8 million (2019: HK$2,457.5 million). Driven by its strong brand position and product portfolio (both car seats and strollers), fortified global operations and supply chain, expansion of distribution channels and the launch of new products, CYBEX attained strong global performance in January and a strong recovery beginning the second half of May which continued through December as regional economies gradually began to reopen and remain operational. During the Period, CYBEX continued to receive multiple awards from independent European consumer testing organizations (e.g. ADAC), further attesting to the brand’s commitment to safety, design and function.
gb achieved growth in online sales through successful digital transformation
Revenue of gb brand amounted to approximately HK$2,472.0 million (2019: HK$2,834.7 million) globally. In the key China market, the strong revenue performance prior to the outbreak of COVID-19 was directly impacted by the pandemic on gb’s offline retail and wholesale channels in China, where nationwide temporary closure and subsequent periodic regional shutdowns / re-openings took place. As a result, the number of the brand’s self-managed offline stores reduced, yet the overall foot traffic is gradually recovering. During the Period, gb brand continued to seize opportunities by modernizing and enhancing its brand image and accelerated rapid business transformation toward a digital, real-time data-driven cloud/social media based online platform – thus achieving growth in its online channels, which was fueled by strong revenue recovery and growth in its non-durable product category. gb has maintained and will strengthen its leading brand awareness in the China market by dedicating resources to deliver innovate products for both durable and non-durable products and utilizing targeted marketing to key consumer groups to remain top of mind in design, safety and functionality.
Evenflo recorded market share increase with new product introductions
Evenflo recorded revenue of approximately HK$1,667.7 million (2019: HK$1,839.5 million) in the Period. Despite the impact by the pandemic in the United States during the second quarter, revenue began to recover in mid-June and achieved stable year-on-year development for the third quarter of 2020, offset by late year delayed shipments to key national retailers caused by disruptions in global logistics due to the continuing COVID-19 impact and ongoing economic and political uncertainty. Online revenues registered growth during the Period driven by strong consumer acceptance of new product introductions. The new product introductions are the result of the strategy of enhancing the Evenflo brand image and shifting the overall product mix towards more profitable products.
During the Period, the Blue Chip business recorded revenue of approximately HK$997.2 million (2019: HK$1,008.6 million). Offsetting the first half revenue decrease resulted from the COVID-19 pandemic is a strong and rapid recovery in the second half. An 8.0% growth (7.1% growth on a constant currency basis) was achieved after the resumption of shipments from China production and the gradual recovery in its customers’ global markets. Blue Chip business remains stable.
The Group’s revenue from other business units including the Group’s tactical brands and retailer’s private label business approximated HK$511.4 million (2019: HK$636.8 million) during the Period. The year-on-year decrease was caused by the COVID-19 impact combined with continued portfolio rationalization.
Looking ahead, Goodbaby International’s CEO Mr. Martin Pos said, "Goodbaby International has remained steadfast in its commitment to its long-term strategy while concurrently executing aggressive, proactive reform initiatives. As a result, we withstood the related challenges and continue to remain robust operationally and profitable, successfully turning the global crisis into opportunities. With the introduction of the gradual global distribution of vaccines to combat COVID-19 and the preliminary signs of stabilization in both economic and political environments in our key markets, we are viewing mid to late 2021 with growing optimism. In particular, CYBEX will realize strong global revenue growth across all key geographic regions and gain market share driven by its current product portfolio, new product launches, new category extensions, strengthened supply chain capabilities and expansion of national distribution platforms in new geographic territories. gb will continue its brand upgrade, rapid expansion of digital cloud retail system and social media based channels and its focus on product innovation, technologies and new product launches, which will establish the foundation for growth in revenue and profitability. Evenflo will continue to launch new, more profitable products and to fulfill new awards of business from major retailers, thus driving its sustainable growth and market share. We believe that our strong global one-dragon model is the key fundamental element to drive our accomplishments going forwards."
For more details, please refer to the announcement:
About Goodbaby International Holdings Limited
Goodbaby International Holdings Ltd. is a world leading parenting products company. The Group serves millions of families around the world through design, research and development, manufacture, marketing and sales of children’s car safety seats, strollers, apparels and home textile products, feeding, nursing and personal care products, cribs, bicycles and tricycles and other children products.
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