Yue Yuen Industrial (Holdings) Limited reported sales for the nine months ended June 30 rose 4.8% to $3.8 billion. Profits decreased year on year by 17.2% to $362.8 million. Excluding non-recurring items, recurring profit attributable to equity holders increased by 9.5% to $341.2 million.
The non-recurring items include the fair value changes and last yearâ€s gain on deemed disposal of subsidiaries, The fair value changes were recognized in accordance with accounting standards arising from the mark-to-market valuations of certain derivative financial instruments. The gain on deemed disposal of subsidiaries was recognized on the spin-off of Pou Sheng International (Holdings) Limited in June last year. Total footwear production volume for the nine-month period amounted to 193.1 million pairs, a decrease of 1.3% compared with the corresponding period last year.
During the period under review, the global economy was weak and consumer spending was slower than the same period last year. The companyâ€s major customers were affected by the lower consumer spending but did not see the dramatic declines in consumption experienced by other consumer product sectors. The companyâ€s largest geographic market, Asia, continued to exhibit stable sales
growth. Sales for the U.S. market still had mild growth. South America the fastest growing market grew by 27.5% year on year. When viewed by product category, the largest category athletic shoes had almost the same level of turnover when compared with last year. Casual Shoes sales were up 12.7% year on year compared to flat growth in financial year 2008. Retail Sales, encompassing both shoes and apparel, grew at a 20.6% compared to earlier years. Since the companyâ€s customers are market leading brand name companies, management feels the company can continue to operate with stability during the current global economic weakness.