Strategic Brands Further Gaining Market Share
Remediations Implemented Will Improve Profitability
HONG KONG, March 23, 2022 /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, announced its annual results for the year ended 31 December 2021 (the "Period"). During the Period, revenue of the Group robustly increased by 16.7% (a 13.1% increase on a constant currency basis) to approximately HK$9,692.1 million (2020: HK$8,305.0 million), a historic record during extremely challenging global COVID-19 disruptions. The Group recorded a solid increase of 12.8% in revenue of core Strategic brands (a 9.3% increase on a constant currency basis), and an increase of 8.9% to approximately HK$3,995.2 million (2020: HK$3,668.1 million) in the reported gross profit.
CYBEX sustains strong growth momentum and gains market share
During the Period, the CYBEX brand continued to achieve record revenue with a strong growth of 27.4% (a 24.8% increase on a constant currency basis) to approximately HK$3,384.5 million (2020: HK$2,656.8 million). Leveraging its strong and enhanced brand position, continued expansion and fortification of omni-channels including national distribution networks, innovative product portfolio (both strollers and car seats) and new launches and strong global operations and supply chain management, CYBEX recorded resilient financial performance amidst ongoing volatilities from COVID-19 and intermittent shortages in product availability. The launch of a number of disruptive and innovative products further reinforced CYBEX's leading position as the premium "technical-lifestyle" brand as well as its unique strengths in product innovation.
gb continues to adjust the omni-channel distribution structure to lay a solid foundation for business turnaround in 2022
Revenue of the gb brand amounted to approximately HK$2,298.6 million (2020: HK$2,472.0 million). In its key China market, the revenue performance was affected by a sustained decline in China's birth rate, as well as the impact on offline and wholesale business due to intermittent COVID-19 related store closures and proactive consolidation of wholesale channels and optimization of its retail stores. During the Period, gb continued to right-size and modernize the omni-channel distribution structure to further address the birth rate decline and rapidly changing consumer behavior. Corresponding improvements, including positive performance registered in new-generation self-owned stores opened during the Period and a restructured e-commerce model with enhanced content marketing, emerged and are expected to lay a solid foundation for a business turnaround in 2022. gb continued to dedicate resources to both durable and non-durable product development and innovation in the Period, and such efforts have been rewarded by garnering prominent awards.
Evenflo achieves historic revenue growth driven by strong consumer acceptance of new products
The Evenflo brand recorded revenue growth of 18.9% (a 17.6% increase on a constant currency basis) to approximately HK$1,982.6 million (2020: HK$1,667.7 million). The strong growth momentum, indicating increases in market share, was mainly due to the combined effects of strong consumer acceptance of new innovative products, increasing brand acceptance as an innovative brand and strong focus on its key North America market. Evenflo's efforts in innovation and product development have been acknowledged and validated by receiving the prominent 2021 Juvenile Products Manufacturers Association ("JPMA") Innovation Award.
During the Period, the Blue Chip business recorded significant revenue increase of 54.0% (49.1% increase on a constant currency basis) to approximately HK$1,535.5 million (2020: HK$997.2 million). The increase was mainly driven by strong demand from Blue Chip customers. The Group continued to provide robust, value-oriented solutions for its key customers. Its successful service-oriented business model further strengthened the Group's long-term partnership with its customers.
Outlook
Looking ahead, 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 product category extensions, strengthened supply chain capabilities and expansion of omni-channels in new geographic territories. CYBEX is well prepared to rapidly adjust its commercial activities to the new realities of the evolving geopolitical environment in Europe. gb will continue to focus on the China market. It will strongly focus on profitability by continuing to right-size and modernize the online/offline omni-channel structure to address further birth rate declines and rapidly changing consumer behavior. It will also continue to precisely invest in and execute digital transformation to strengthen customer engagement in all self-owned channels. Evenflo will continue to drive strong revenue and market share growth based on strong consumer acceptance of recent product launches and will launch new, more profitable products and continue to earn new business awards from major retailers as the brand gains recognized for its commitment to overall brand enhancement and product innovation. It will also proactively address global geopolitical and economic volatilities as they evolve.
Goodbaby International's CEO Mr. Martin Pos concluded, "Notwithstanding the global economy is still challenged by the uncertainties posed by COVID-19, with ongoing pressure on supply chain due to insufficient capacities and increasing raw materials costs, we are well poised to take up the difficulties ahead by adhering to our business strategies and the proven strength of our business platforms. We will continue to strengthen our vertically integrated "One-Dragon" platform of our own brands, expand global omni-channel distribution network, integrate our own distribution and manufacturing platform as well as further boost our market share in key regions. We will stay vigilant regarding any ongoing impact of developments related to COVID-19 and likely global economy volatilities resulted from European political instability and will implement further necessary proactive measures to ensure the ongoing viability of the Group's business performance."
For more details, please refer to the announcement: https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0322/2022032201394.pdf
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, apparel and home textile products, feeding, nursing and personal care products, cribs, bicycles and tricycles and other children's products.
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