(EQS-News / 01/04/2015 / 10:29 UTC+8)
[For Immediate Release]
Goodbaby International Holdings Limited
Announces 2014 Annual Results
* * *
Established One-Stop, Vertically Integrated Business Model through
Successful Integration of Cybex and Evenflo
Revenue Increased 46.0% to HK$6.1 billion with accelerated growth
For the year ended 31 December 2014 2013 Change
HK$ HK$
million million
Revenue 6,115.6 4,188.8 46.0%
Gross profit 1,527.5 960.6 59.0%
Gross profit margin 25.0% 22.9% 2.1p.p.
Operating profit 144.8 191.2 -24.3%
Profit for the year 57.7 171.1 -66.3%
Profit from ordinary business for the year 176.3 171.1 3.0%
(excluding the effect of expenses relating to
mergers and acquisitions)
Basic earnings per share (HK cents) 5 17 -70.6%
(30 March 2015, Hong Kong) Goodbaby International Holdings Limited
("Goodbaby International" or the "Company", SEHK stock code: 1086, together
with its subsidiaries, the "Group"), an international,
vertically-integrated durable juvenile products company headquartered in
China, today announces its annual results for the year ended 31 December
2014.
2014 was a milestone year for Goodbaby International. Whilst continuing to
support its blue-chip customers, the Group completed two acquisitions and
made significant progress in the overseas markets as it upgraded its
business into a one-stop, vertically integrated business model. For the
year ended 31 December 2014, the Group recorded total revenue of HK$6,115.6
million, representing an increase of 46.0% from last year. Gross profit
margin increased by 2.1 percentage points to 25.0%. Profit for the year was
HK$57.7 million. However, excluding the effect of expenses relating to
mergers and acquisitions, profit for the year amounted to HK$176.3 million,
representing an increase of 3.0%. The Board of Directors did not recommend
any final dividend.
- Cont'd -
In 2014, the China market's business maintained growth and recorded revenue
of HK$1,466.2 million, representing an increase of 8.0%. Revenue growth
accelerated from approximately 4.2% in 2013 and approximately 5.6% in the
first half of 2014 to approximately 11.3% in the second half of 2014 on
year-on-year basis.
During the year, the Group leveraged on its Brand-driven business model and
launched the 'BOOM' strategy (brand, online to offline, and mobile) to
enhance its leading online and offline position in the China market. To
maximize the rapid development of mobile internet, the Group will adapt
itself to connect and interact with end consumers directly through social
media using mobile phones and tablets, building an 'eco system' of fans for
its brands.
In addition, the Group continued to execute its proactive 'pull' marketing
strategy to set up a retail-driven distribution system. The Group
introduced the gb e-Family stores, the first brand-exclusive stores in the
industry in tier 3 to 5 cities. The stores provide more professional
services to consumers, and also enhance coordination of online and offline
channels where offline stores provide to online customers services
including installation and repair. The stores received positive feedback
thus far and helped enhance the Group's brand awareness. The Group opened
350 the gb e-Family stores in 2014 and sales from these stores amounted to
approximately HK$109.9 million.
In view of the rapidly growing e-commerce business in China, Goodbaby
International enhanced its partnerships with five major online retail
platforms. In the juvenile durables sector, the 'gb' brand ranked no. 1 in
terms of value and the 'Happy Dino' brand ranked no. 1 in terms of volume
on four out of the five major platforms. Revenue from the e-commerce
segment grew 52.5% to HK$414.2 million during the year, and accounted for
28.3% of the revenue from the China market.
- Cont'd -
On the overseas markets front, owing to the success of the Group's
"three-pronged" strategy (blue-chip, direct distribution and mergers and
acquisitions), revenue rose significantly by 64.2% to HK$4,649.4 million.
Revenue of the Group from blue-chip customers and direct distribution
business amounted to HK$1,477.9 million (representing growth of 15.2%) and
HK$391.0 million (representing growth of 174.1%), respectively. During the
year, the Group completed the acquisition of Cybex, the world's leading
high-end child car seat brand headquartered in Germany, and Evenflo, a
leading durable juvenile products Brand headquartered in the United States.
Cybex and Evenflo were quickly integrated into the Goodbaby Group, creating
global efficiencies and synergies between business units. During the latter
part of the year and beginning of 2015, Cybex continued to improve access
to markets through direct distribution to retailers by acquiring a
distributor in Scandinavia and opening a new direct distribution office in
Spain, completing the European network. In North America, Evenflo provides
logistics and warehousing services to all the Brands of the Group.
As a result of following a mergers and acquisitions approach to
international business, the Group carried out an organizational restructure
for growth. The purpose is to improve service to blue-chip customers, and
to integrate the two acquired companies into the existing businesses. As
part of the restructure, the Group has made several key management
appointments. Mr. Martin Pos, founder of Cybex, has been appointed Deputy
CEO. Mr. Michael Qu changed his role to focus on blue-chip customers and to
lead the American market. Meanwhile, Mr. Tim Maule has been appointed as
Chief Commercial Officer (CCO) and Mr. Erich Fuchs as Chief Supply Chain
Officer (CSO). In addition, Mr. Gregory Mansker has been appointed as
Chairman and CEO of the Americas' market. The appointments reinforce
overall management strength, and are in line with the Group's corporate
strategy to upgrade Goodbaby International into a market-driven and
Brand-oriented one-stop vertically integrated enterprise.
Looking ahead, Goodbaby International's Chairman and CEO Mr. Song Zhenghuan
said, "In 2014, we were thrilled to welcome the Brands Cybex and Evenflo
into Goodbaby International, thereby upgrading the Group's business to a
one-stop, vertically integrated business model. Our strengths in Brand
building, Research & Development, manufacturing and supply chain will
underpin our future growth. Goodbaby International's three strategic brands
span key geographical areas and cover all price ranges, with localized
operations and direct distribution platforms. We have commenced the second
phase of our integration, and will continue to launch our Brands across
each continent through Group distribution channels. By combining the
strengths of all our businesses and our colleagues from culturally diverse
backgrounds, we are confident to generate synergies and expect enhanced
revenue growth and profit improvement in 2015."
- End -
About Goodbaby International Holdings Limited
Goodbaby International is one the world's leading global durable juvenile
products companies, headquartered in China. We adopt a vertically
integrated business model. The Group's core capabilities lie in research &
development, design and quality manufacturing, branding, marketing and
sales of juvenile products, such as strollers, children's car safety seats,
juvenile household products (e.g. cribs, safety gates, high chairs and
infant seats), as well as juvenile toy vehicles (e.g. stationary activity
centers, tricycles, e-cars and scooters).
Goodbaby International has over 13,000 employees worldwide; we own eight
research & development centers globally including Americas, Europe and Asia
and manages sales, marketing and distribution offices in 11 countries.
With this global presence, localized operations and strong capabilities in
brand building, the Group has a leadership position in the juvenile goods
industry. Every day, millions of parents count on the quality, reliability
and performance of our products.
For further information, please contact:
iPR Ogilvy & Mather
Callis Lau / Karen Tse / Janis Lai/ Heng Tam
Tel: (852)2136 6952/ 2136 6950/ 3920 7646/ 3920 7656
Fax: (852) 3170 6606
Email: goodbaby@iprogilvy.com
End of Press Release
+++++
Document: http://n.equitystory.com/c/fncls.ssp?u=XPIMVGICYC
Document title: Goodbaby International Holdings Limited Announces 2014
Annual Results - Established One-Stop, Vertically Integrated Business
Model through Successful Integration of Cybex and Evenflo Revenue
Increased 46.0% to HK$6.1 billion with accelerated growth
=--------------------------------------------------------------------
Key word(s): Quarter Results
01/04/2015 UTC+8 Dissemination of a Press Release, transmitted by EQS
TodayIR - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Media archive at www.todayir.com
=--------------------------------------------------------------------
340433 01/04/2015 UTC+8
(END) Dow Jones Newswires
March 31, 2015 22:31 ET (02:31 GMT)
