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Goodbaby International Holdings Limited Announces 2015 Annual Results

2016-03-30 15:40
-Transformation into Brand-driven and Vertically-integrated Business Model
-Net Profit Surged 251.3% to HK$202.7 Million

HONG KONG, March 30, 2016 /PRNewswire/ --

For the year ended 31 December

 

2015

HK$ million

2014

HK$ million

Change

 

Revenue

6,951.1

6,115.6

13.7%

Gross profit

2,050.2

1,527.5

34.2%

Gross profit margin

29.5%

25.0%

4.5 p.p.

Operating profit

317.6

144.8

119.3%

Profit for the year

202.7

57.7

251.3%

Basic earnings per share (HK cents)

18

5

260%

Final dividend per share (HK cents)

5

--

--

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 2015.

Delivering sustainable growth

In 2015, the Group reorganised its business and completed its transformation into a brand-driven, one-dragon and vertically-integrated business model, successfully operating across all key brands and all key regions. For the year ended 31 December 2015, the Group recorded total revenue of HK$6,951.1 million, representing a year-on-year increase of approximately 13.7%. Gross profit margin improved to approximately 29.5% as the Group refocused and implemented its transformation to a brand-driven business. Despite investing in the transformation of the Group's business, operating profit improved to HK$317.6 million, representing a growth of approximately 119.3% over 2014. Profit for the year surged by 251.3% to HK$202.7 million. The Board of Directors has resolved to declare the payment of a final dividend of HK$0.05 per share for the year ended 31 December 2015 (2014: nil).

Commenting on the Group's annual results 2015, Goodbaby International's Chief Executive Officer Mr. Martin Pos said, "In 2015, we have reorganised our business, putting the changing needs of our customers and consumers first as we believe we understand the global juvenile market better than anyone else. We implemented strategies and put the capabilities in place to transform the Group into a faster growing, more profitable business with a solid and stable foundation. Whilst investing for growth in our own strategic brands including Cybex, gb and Evenflo, we also partnered with a consolidated number of Blue-Chip Customers to better leverage our resources and to provide improved service levels."

CYBEX achieved rapid growth

In 2015, revenues from Cybex branded products amounted to approximately HK$1,213.2 million (equivalent to approximately EUR 141.5 million), representing a growth of approximately 56.9% in HK dollars (87.7% in EUR) compared with 2014 on proforma base.

Cybex product portfolio was strengthened in 2015 by the launch of the Priam stroller, establishing Cybex as a premium stroller of choice with celebrities and opinion leaders. Further in late 2015, Cybex launched the second stroller design collaboration with Jeremy Scott, one of the world's leading fashion designers, at the famous Corso Como boutique in Milan, to international acclaim. Online Cybex sales grew by over 175% with one major retailer, whilst Cybex became one of the most liked brands on social media. Cybex the premium, technical, and lifestyle brand is now distributed in over 100 countries, and is now established in each of the Group's core markets.

Evenflo recovery ahead of plan

Revenues from Evenflo branded products amounted to approximately HK$1,796.5 million (equivalent to approximately USD231.8 million) in 2015, representing a growth of approximately 16.3% in HK dollars (16.5% in USD) compared with that of 2014 on proforma base.

In January 2015, a new management team led by Chief Executive Officer of the Group's American business, Greg Mansker was appointed. Under his experienced leadership, Evenflo returned to profitability ahead of schedule. Utilizing the power of the Group's research and innovation facilities, Evenflo launched innovative new products, including the award-winning Sensor Safe technology in car seats. Evenflo has also strategically partnered with all retailers to improve instore visibility for the brand, driving the brand and consumer purchases.

As a result of these improvements in performance and product innovation, at the 2016 Walmart supplier summit Evenflo won "innovation award winning" vendor of the year, ahead of many internationally renowned companies. It was named as one of "The World's Most Innovative Companies" and listed as a top ten of innovative car and surrounding product companies by "Fast Company", one of the most influential business magazines in America.

gb's global launch to industry wide acclaim

In 2015, revenues from gb branded products amounted to approximately HK$972.8 million, representing a growth of approximately 7.1%.

In China, gb's revenue grew by 4.3% to approximately HK$771.8 million in 2015. In line with the gb brand growth plans, the Group has implemented a strategy to upgrade the presentation of the product range in store.

Despite gb being a famous brand in China, it has been largely unknown around the world. That changed in September 2015 when gb was launched globally to industry wide acclaim at the Kind and Jugend Nursery Fair in Koln and at the ABC kid's expo in Las Vegas.

Consolidating Blue-Chip Customers

In 2015, the Group rationalized its Blue-Chip Customers to better utilize its R&D and manufacturing resources. The Group partnered with a focused group of Blue-Chip Customers, which are strategically synergistic with the Group and geographically complementary to each other. Revenue from Blue-Chip Customers declined in line with expectations to approximately HK$1,736.3 million compared to approximately HK$2,477.9 million in 2014, driven by declines in revenue from the Group's largest Blue-Chip Customer as expected. Other Blue-Chip Customers were generally stable. The decline in orders from Blue-Chip Customers was generally offset by increased orders from its own brands.

More opportunities ahead

Looking ahead, Goodbaby International's Chairman Mr. Song Zhenghuan said, "We are glad to have completed the ambitions laid out at the time of our IPO, a brand-driven, one-dragon, vertically-integrated business. Over the next year, we will continue to make each of our strategic brands increasing available in each of our core market places, utilizing the Group's distribution and logistics services. We will encourage more consumers than ever before to connect with our brands through online and social media channels driving the fan eco-system, building loyalty and trust. Within our global supply chain, we expect further synergies and efficiencies as colleagues from around the world work more closely together. In China, our brands will benefit from the changes that allow parents to have more than one child, the changing legislation in car safety and the further implementation of our strategy. In North American, all our four strategic brands are available for the first time in one of our core regions, while in Europe the improvements and additions to our national and international distribution organisation will continue to improve service levels to our customers. Under the new leadership of Mr. Martin Pos, we expect to improve our revenue growth and profit performance in 2016."

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.

Source: Goodbaby International Holdings Limited

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