Yue Yuen Industrial (Holdings) Ltd., the manufacturer of footwear for most major outdoor and athletic brands, said it expects to record an increase of 140 percent to 145 percent in its profits in the nine month period ended September 30, compared to profits of $137.7 million in the 2023 nine-month YTD period.
Yue Yuen trades and reports in the U.S. dollar ($) currency.
The Hong Kong-based firm said the gains were “mainly attributable to the solid increase in the gross profit margin of the group’s manufacturing business alongside a substantial rise in brand customers’ demand for its footwear products, with order fulfillment in its Manufacturing business strengthening quarter-on-quarter, driven by the further normalization of the global footwear market.”
Yue Yuen also said it did not incur expenses for production capacity adjustments during the nine-month period compared to one-off expenses of approximately $30.5 million for production capacity adjustments in the corresponding period of 2023. This, together with a one-off gain of approximately $24.1 million on the “partial disposal of associates during the period,” also contributed to the increase in profit.
Yue Yuen added that it “further supported the increase in profit during the period by continuing to balance demand and its order pipeline and by flexible production scheduling and orderly overtime arrangement, alongside the steady ramp-up of new production capacity throughout this year also led to a higher overall capacity utilization rate and improved production efficiency.”
Yue Yuen claims to be the world’s largest manufacturer of branded sports shoes and casual shoes with partners including Nike, Adidas, Asics, New Balance, Salomon and Timberland.
Image courtesy Yue Yuen Industrial (Holdings) Ltd.
