The net profit of Yuyuan group, a Nike agent factory, rose in the first quarter, and the average price of each pair of shoes rose by 10.5%
16/04/2022
For the three months ended March 31, 2022, the company's operating revenue was $2.394 billion, a year-on-year decrease of 4%. Nevertheless, the profit attributable to the owners of the company during the period was US $88.576 million, an increase of 3.7% over US $85.374 million in the same period last year. Among them, the operating revenue from footwear activities (including sports / outdoor shoes, casual shoes and sports sandals) increased by 14.8% year-on-year to US $1394 million;
The total operating income of the manufacturing business of shoe soles, accessories and others was 138 million US dollars, an increase of 22.74% year-on-year; Baosheng's operating revenue decreased by 23.5% to US $863 million compared with us $1.128 billion in the same period last year.
In the first quarter of 2022, the group's gross profit decreased by 10.5% to US $568 million. Among them, the gross profit of manufacturing business increased by 5.7% to US $262 million, and the gross profit margin decreased by 1.1% to 17.1%, but increased by 1.1 percentage points compared with the previous quarter, mainly due to better capacity utilization, about 91%.
According to the report, as of March, the number of employees of Yuyuan group rebounded to 298000, mainly through recruitment in Indonesia. Looking ahead, the company is expected to further consider better labor supply and improve production capacity. As the labor market is full of challenges, Vietnamese shoe shipments are expected to account for only 30% of the total contribution in 2022. The bank expects manufacturing revenue to increase by 18%, sales volume to increase by 15%, and operating profit margin to increase to 5.2% from 4.5% due to better than expected control of operating expenses.
The bank mentioned that the group's retail industry in the second quarter is more challenging. The retail business is expected to suffer operating losses due to deleveraging. Coupled with weak online and offline traffic, the revenue in the second quarter is expected to decline by about 34%. The bank cut the same store sales forecast by 6.8 percentage points to 2%, and the annual operating profit margin may reach 2% (previously 4.5%). This means that the operating profit margin will increase to 2.8% in the second half of the year and then to 5.3% in 2023, as sales will improve once the epidemic eases.
