CYBEX and Evenflo Make Record High First Half Revenue Despite Facing Unprecedented Global Challenges
HONG KONG, Aug. 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 today its interim results for the six months ended 30 June 2022 (the "Period"). During the Period, revenue of the Group amounted to approximately HK$4,372.8 million (1H 2021: HK$4,627.3 million) and profit for the period was HK$2.4 million (1H 2021: HK$101.2 million), amidst the challenges of protracted pandemic environment, massively increased global supply chain costs, continued global supply chain disruptions, and unfavorable foreign exchange rate movements in Europe.
Goodbaby International's CEO Mr. Martin Pos said, "Although the global economy remains ridden with uncertainties brought by COVID-19, and the global supply chain has been seriously disrupted and related costs have rocketed, plus there has been unfavorable exchange rate movements in Europe, we are prepared and ready to meet the challenges and seize opportunities. The Group initiated focused cost reduction measures in all business units to freeze unnecessary expenditures and implemented mitigation initiatives. Meanwhile, we continued to expand our own international distribution platforms and invest in innovation in a more prudent manner to maintain our competitive strength. In the future, we will continue to reinforce development of our one-dragon vertically integrated platform, invest in B2C platforms through our national distribution platforms and optimize supply chain strategies. We will be vigilant in guarding our business against impacts related to COVID-19 and will actively implement all necessary measures to ensure the Group delivers excellent performance."
CYBEX gains market share and reinforces global leadership
During the Period, CYBEX brand recorded growth of 0.9% (a 10.1% increase on a constant currency basis) with revenue reaching another first half high at approximately HK$1,631.8 million (1H 2021: HK$1,617.9 million). The growth momentum it enjoyed across all key global markets was primarily braced by its very strong brand position and disruptive and innovative product portfolio, introduction of new products – car seats, wheeled goods and home furniture, continuous efforts to expand and fortify its global omni-channel distribution network, in particular, and the successful roll-out of its own e-commerce platform in Europe also contributing to its positive growth performance.
gb continues to right-size and transforms commercial operations to cope with anti-epidemic measures and birth rate decline
Revenue of the gb brand amounted to approximately HK$791.7 million (1H 2021: HK$1,211.2 million). During the Period, the China market was hit hard by Omicron sub-variants and strict lockdowns as well as other anti-epidemic measures including forced closure of offline stores and warehouses, delivery logistics were seriously disrupted, as such, wholesale activities were stifled and consumer confidence weakened. gb brand consequently continued to right-size and transform its commercial operations to adapt to the new China market environment.
Evenflo demonstrates remarkable growth momentum with first half revenue climbing to record high
Evenflo brand recorded strong revenue growth of 31.2% (a 29.8% increase on a constant currency basis), with revenue amounting to approximately HK$1,229.7 million (1H 2021: HK$937.2 million) for the Period, primarily driven by the strong growth in digital channels and continued strong consumer acceptance of its innovative products, an elevated product portfolio and enhanced brand image, helping it gain business with retailers. As a result, its market share swelled in North America.
During the Period, Blue Chip business recorded revenue of approximately HK$560.6 million (1H 2021: HK$642.3 million). The revenue decrease was primarily due to fewer orders from customers with inventory piling up. Blue Chip continues to maintain very stable and healthy customer relationship.
Outlook
Looking ahead, the Group will continue its focused strategy on strategic brands of CYBEX, gb and Evenflo, and support the ongoing development of Blue Chip business.
It will continue the global growth strategy it has tailored for CYBEX across all key geographic regions, with the aim to help the brand gain market share with the support of an innovative product portfolio, new product launches, extended product categories, strengthened supply chain capabilities, new e-commerce platforms and expanded national distribution platforms in new geographic territories. Recently implemented price increases and cost reduction measures combined with the stabilization of key supply chain costs will significantly improve profitability.
gb will continue its brand upgrade, further develop its digital cloud retail system and social media-based own channels, and complete reforming its wholesale distribution channel as an effort to right-size and transform its business. Furthermore, by focusing on product innovation, technologies and new product launches, it will be able to cement the foundation for improving profitability.
As for Evenflo, it will press on with making strong revenue and growing market share with the support of perfecting digital channels and on its new innovative products gaining consumer reception. It expects profitability to improve from the competitive price increases implemented in the second quarter and the stabilization of supply chain costs.
For more details, please refer to the announcement:
https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0822/2022082201030.pdf
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.
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