Goodbaby International Announces 2024 Interim Results Positive Momentum Recorded in both Revenue and Profitability, with Reported Net Profit Soaring by 526.4%
CYBEX Achieves Record-High in Revenue and Profitability
Highlights:
The Group sustained momentum from second half of 2023 and recorded growth in both revenue and profit, with revenue increasing by 7.7% to HK$4,187.6 million and gaining market shares in international markets;
The Group's reported net profit soared by 526.4% to approximately HK$187.3 million;
CYBEX brand achieved all-time high in revenue and profitability, with revenue rising by 18.9% to approximately HK$2,158.2 million, significantly gaining market shares across its key markets;
Evenflo continued to strengthen its leading position in North America and achieved significant improvement in profitability, with revenue reaching approximately HK$1,133.8 million;
The Group overtook its competitors and attained a more consolidated performance through the robustness of its one-dragon vertically integrated platform.
HONG KONG, Aug. 30, 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 unaudited interim results for the six months ended 30 June 2024 (the "Period").
During the Period, the Group's revenue increased by 7.7% (a 6.2% increase on a constant currency basis) to approximately HK$4,187.6 million (1H 2023: HK$3,889.2 million). Reported gross profit increased by 23.3% to approximately HK$2,201.5 million (1H 2023: HK$1,784.8 million). In addition, reported operating profit surged by 147.9% to approximately HK$279.4 million (1H 2023: HK$112.7 million), and reported net profit soared by 526.4% to approximately HK$187.3 million (1H 2023: HK$29.9 million).
CYBEX achieves record-high revenue and profitability; reinforced global leading position as the premium "technical-lifestyle" brand Despite a tough environment, the CYBEX brand achieved historic high levels of revenue backed by strong market demand for its products, with revenue increasing by 18.9% (a 16.7% increase on a constant currency basis) to approximately HK$2,158.2 million (1H 2023: HK$1,814.8 million). CYBEX's revenue growth, significant market share gains, and improved profitability have pushed its operating profit margin to a record-high level. This success stems from CYBEX's strong brand position, advanced self-owned distribution infrastructure, continued new product launches, and global omni-channel expansion efforts. During the Period, CYBEX had six product launches, including new categories, all of which were highly acclaimed by the market. CYBEX continued to proudly receive awards from prominent international organizations in recognition of its outstanding performance in product design and innovation. The brand continued to reinforce its global leading position as the premium "technical-lifestyle" brand.
Evenflo reinforces market leadership in North America and achieves significant improvement in profitability The Evenflo brand further consolidated its leading position in North America and achieved revenue growth of 3.0% (a 0.7% increase on a constant currency basis) to approximately HK$1,133.8 million (1H 2023: HK$1,101.3 million). The 3.0% growth and improved profitability were due to solid double-digit growth of high-margin products and decline in low-margin products. The positive business performance was fueled by significant growth in digital channels, positive consumer acceptance of innovative products like car seats, continued product launches and elevated brand image.
During the Period, the Blue Chip business achieved significant rebound as destocking of the Group's Blue Chip customers had ended. The Group's relationship with its customers remains healthy and stable.
Revenue from the gb brand totaled approximately HK$500.3 million (1H 2023: HK$638.6 million). The brand continued to right-size its commercial operations and undergo a brand transformation. gb continued to execute the new business model focusing on social media-based channels featuring content marketing, data-driven consumer insights and proactive consumer engagement. With progress underway, revenue decline narrowed from 33.8% in the first quarter to 7.8% in the second quarter (on a constant currency basis).
Outlook Looking ahead, geopolitical conflicts, logistics disruptions, and political dynamics will present uncertainties to the global economy. The Group will therefore remain agile and vigilant as it seeks to further build on its solid momentum while keeping a close eye on possible negative macro impacts. The Group is confident that its vertically integrated one-dragon brand-driven strategy will enable it to bolster its business and strengthen its resilience in uncertain times. The Group's focus will remain on its strategic brands CYBEX, Evenflo, and gb, as well as the ongoing development of the Blue Chip business.
Mr. Tongyou LIU, Executive Director and Group CEO of Goodbaby International said, "Despite the persistent challenges in the macro environment, we are pleased to see the Group maintaining positive momentum and achieving growth in both revenue and profitability in the first half of 2024. Moving forward, we will continue to optimize and consolidate our global supply chain strategies and broaden our global footprint. Our brand-focused strategy, backed by world-class technologies, innovations and digitalization will help us realize our vision of becoming an outstanding enterprise, and ensure that we provide high-quality and safe products and services to consumers around the world."
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.
