Achieves Robust Business Turnaround in an Uncertain Environment
Highlights:
The Group demonstrated strong resilience and achieved a robust turnaround in business performance;
The Group's profitability showed strong momentum, with a remarkable 9.6 percentage points improvement in gross margin to a new high of 50.1%;
The Group's operating profit increased by 265.5% to approximately HK$368.4 million, with operating margin rebounding with accelerated momentum quarter by quarter throughout the year;
The Group generated record operating cash flow;
The Group continued to gain market share in key international markets based on its further consolidated One-dragon vertically integrated global platform and continued investment in innovation, global omni-channel infrastructure and digital.
HONG KONG, March 26, 2024 /PRNewswire/ -- Goodbaby International Holdings Limited ("Goodbaby International" or the "Company", HKEX stock code: 1086, together with its subsidiaries, the "Group"), a leading global parenting products company, has announced its annual results for the year ended 31 December 2023 (the "Year").
During the Year, the Group's revenue amounted to approximately HK$7,927.3 million (2022: HK$8,292.2 million). Reported gross profit increased by 18.2% to approximately HK$3,967.7 million (2022: HK$3,355.9 million) and gross margin improved significantly by 9.6 percentage points to a new record high of 50.1%. In addition, the reported operating profit surged by 265.5% to approximately HK$368.4 million (2022: HK$100.8 million), with operating margin at 4.6%.
CYBEX achieves record high revenue, profitability and free cashflow and gains market share in key international markets
Despite a persistently uncertain and challenging environment, the CYBEX brand recorded strong growth of 12.5% (an 11.1% increase on a constant currency basis) during the Year to reach a new all-time high revenue of approximately HK$3,696.9 million (2022: HK$3,285.3 million). CYBEX continued to gain market shares in its key international markets. The brand's operating profitability and free cash flow rose to a new level, highlighting its operational efficiency and management strengths. The continued remarkable performance was primarily attributable to CYBEX's strong brand position, innovative product portfolio and continued new product launches, as well as the ongoing expansion of its global omni-channel distribution network. As of the end of the Year, CYBEX had extended its footprint to 114 countries and regions through its own national distribution platforms and distribution partners.
gb successfully launches representative durable products and enters strategic partnership with new energy vehicle companies
Revenue from the gb brand was approximately HK$1,161.0 million (2022: HK$1,473.4 million), and offline sales recorded positive growth during the Year. gb continued to enrich its consumer-centric retail strategy by expanding its product portfolio. During the Year, gb successfully launched the gb Safety Cabin series, which not only became a big revenue contributor, but also repeatedly appeared on lists of best-sellers and trending topics. The brand's leading capabilities in safety products enabled it to enter strategic partnership with new energy vehicle companies for car seat products. In addition, gb continued to be recognized for its upgraded innovative products by receiving several prominent design and innovation awards.
Evenflo solidifies market leadership in North America and demonstrates strong momentum
Evenflo's revenue recorded positive growth (on a constant currency basis) to amount to approximately HK$2,279.6 million (2022: HK$2,304.7 million) for the Year driven a very strong fourth quarter sales. Additionally, profitability of the brand significantly improved and strong operating cash flow was recorded. Despite a declining industry in North America where it operates, Evenflo successfully increased its market share across all product categories and consolidated its leadership in the local juvenile industry. This exceptional performance was driven by significant growth in digital channels, strong consumer acceptance of innovative products, an enhanced product portfolio, and an improved brand image, which also greatly improved the brand's gross margin.
Outlook
Looking ahead, CYBEX will continue its global growth strategy in all key regions, aiming to gain market share through its strong brand position, innovative product portfolio, new product launches, new category extensions, e-commerce platforms and expansion of national distribution platforms into new geographic territories. Cost control measures and operational efficiency improvements will continue to contribute to profitability. The gb brand will further right-size and transform its business toward consumer-centric and brand-driven D2C and S2B2C business model. It will continue to reform and enrich new retail strategy featuring quality services and interactions with consumers on social media platforms. It will further restructure the organization by focusing on improvement and enhancement of strategy execution and organization efficiency. Additionally, the brand will maintain its commitment to product development and innovation, which will lay the foundation for brand upgrade. Evenflo will continue to launch more profitable and innovative products and win new business from major retailers and new distribution channels as the brand is recognized for its commitment to overall brand enhancement and product innovation. Efforts will be made to further improve profitability and cash flow management.
Mr. Tongyou LIU, Executive Director and Group CEO of Goodbaby International, said, "During the Year, we are thrilled to see a robust turnaround in the Group's business performance, accompanied by continued market share gains in key international markets. The positive momentum in profitability and operating cash flow is a testament to our unwavering dedication and efforts. Moving forward, we will continue to invest in global omni-channel distribution network so as to provide a world-class omni-channel experience and optimizing our global supply chain strategies, as well as broadening our global footprint. Our relentless pursuit remains centered on providing customers with high-quality and safe products and services while achieving sustainable business growth."
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About Goodbaby International Holdings Limited
Goodbaby International Holdings Ltd. (stock code: 1086) 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, apparel and home textile products, feeding, nursing and personal care products, cribs, bicycles and tricycles and other children's products.
