Yue Yuen Industrial Limited said revenues for the nine months ended June 30 rose 23.4 percent year on year to U.S. $5.19 billion while net profit increased 5.9 percent to $377.0 million from $356.1 million.
The company said both footwear manufacturing and the retail operations in the Greater China Region continued to experience sales growth compared to the same period last year. Shoe manufacturing activity represented 71.1 percent of the Group's Turnover. The Group's larger customers saw good sales growth in the first nine months of the Group's fiscal year 2011 and in general expect that the calendar year 2011 sales growth will finish as a positive figure. For the nine month period, shoe manufacturing sales increased by 25.8 percent to $3.68 billion underpinned by shoe manufacturing volume that was up by 17.0 percent to 249.1 million pairs, and an increase of 7.6 percent in the average selling price per pair.
The Group has established new production facilities in the inland provinces of China and other areas. The new locations have created short term operating challenges as many new employees need a period of elaborate training. Wage increases in China and other areas were experienced during the operating period as a result of governments' employment policies.
Retail Turnover from the wholesale and retail operations in the Greater China region, representing 20.5 percent of the Group's turnover, continued its growth trend on a year on year basis as a consequence of the buoyant economy in the Greater China region. Retail Turnover increased by 18.1 percent to US$ 1,062.3 million in the nine month period. The Group as at 30th June 2011, had 2,887 directly operated retail stores/counters and had 3,190 sub-distributors, giving the Group a total of 6,077 points of sale across the region.
Group turnover grew modestly in the month of July 2011 on account of the
high base comparison. Group turnover increased by around 19.6 percent
year-on-year to approximately US$ 631 million. The Group has achieved
turnover growth in the ten months ended 31st July 2011, compared to the
same period last year, to around $5.8 billion, an increase of just over
By product category, Athletic Shoes grew 22.4 percent to $2.8 billion; Casual/Outdoor Shoes
increased 38.7 percent to $867.2 million; and Sports Sandals advanced
18.5 percent to $67.8 million. Retail Turnover climbed 18.1 percent to
$1.06 billion while Soles, Components & Others' revenues grew 17.6
percent to $439.1 million.
By region, sale in the U.S. grew 17.1 percent to $1.47 billion; Europe
increased 29.0 percent to $1.18 billion; South America gained 74.5
percent to $241.5 million; and Canada, 22.6 percent to $79.3 million.
Other Areas increased 8.3 percent to $123.8 million.