Yue Yuen Industrial (Holdings) Limited reported sales for the nine months ended June 30 rose 4.8% to $3.8 billion. Profits decreased 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 year’s gain on deemed disposal of subsidiaries.
The company said 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 Chen International 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.
The company said its major customers were affected by the lower consumer spending but did not see the dramatic declines in consumption experienced by other consumer product sectors. Asia, the company’s largest geographic market, continued to exhibit stable sales growth. Sales for the U.S. market sustained mild growth while South America, the fastest growing market, grew by 27.5% year over year. Categorically, athletic shoes had almost the same level of sales as compared to last year. Casual shoes sales were up 12.7% year over year as compared to flat growth in 2008. Retail sales, which include shoes and apparel, grew at a 20.6%.
