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Rapid Growth in APAC Business
1H Revenue Climbs to USD2.29 Billion
HONG KONG, Aug. 31, 2023 /PRNewswire/ — JS Global Lifestyle Company Limited (Stock Code: 1691.HK) (“JS Global” or the “Group”), a world-leading producer of small household appliances with three major brands: Shark, Ninja and Joyoung, today announced its interim results for the six months ended 30 June 2023 (the “Period”).
Revenue from the Group’s continuing operations (including Joyoung and SharkNinja APAC segment) and discontinued operations (SharkNinja non-APAC operations) amounted to USD2,294 million, up 2.8% YoY. Gross profit reached USD975 million with a gross profit margin of 42.5%, up by 3.9 percentage points YoY. Adjusted net profit was USD210 million, up 1.4% YoY. JS Global proposes to distribute an interim dividend of HKD0.0392 per share (approximately equivalent to USD0.005 per share) for the Period.
On 31 July 2023, the SharkNinja Group (excluding SharkNinja APAC Operations) was listed on the New York Stock Exchange, marking the completion of the Group’s organizational restructuring. The Group’s continuing operations comprise the Joyoung segment and the SharkNinja APAC segment following the spin-off. Despite significant challenges, fierce competition and the weakening yuan in China, the Group’s continuing operations recorded revenue of USD574 million and adjusted net profit of USD52 million.
Joyoung segment
In China’s fast-paced and highly competitive environment, Joyoung, adhering to the brand DNA of health and innovation and the “1+3” product strategy, introduced innovative and trend-leading products, upgraded the high-tech series of products including frequency-variable quiet blender, no-flip air fryer, zero-coating rice cookers and other products, and an entry-level series of products – Romantic Life (漫生活). Joyoung recorded revenue of USD491 million for the Period. On a constant currency basis, revenue was USD529 million.
The ODM[1] business has accelerated its expansion into new categories, with constant efforts in R&D of innovative products for global customers. The ODM business provided to SharkNinja Group and SharkNinja APAC has not only enhanced the competitiveness and revenue of the Joyoung branch, but also strengthened the synergy effect within the Group. Meanwhile, Joyoung continued to upgrade its supply chain during the Period, establishing an efficient supply chain to keep costs under control, optimize production and keep pace with changing consumer demands. In terms of sales channels, Joyoung expanded its direct channels, strengthened its retail guides, expanded into new channels, and integrated traditional and content e-commerce, thereby improving sales quality and the customer experience.
SharkNinja APAC segment
Revenue from the SharkNinja APAC segment was USD48.6 million, up by 73.0% YoY and accounting for approximately 9.0% of the Group’s total revenue (excluding sourcing). On a constant currency basis, the revenue of the SharkNinja APAC segment would have increased by 84.6%.
As for the Japan market, SharkNinja APAC has thoroughly analyzed consumer experiences and data, leading to the expansion of its cordless vacuum category. In June 2023, SharkNinja launched its new performance flagship line, CleanSense iQ / IQ+ cordless vacuum cleaner, which increased its market share to 16.1%[2]. During the Period, revenue in the Japan market grew by 32.5% YoY to USD37.2 million.
In April 2023, the Group completed the acquisition of several Mann & Noble entities in Australia, New Zealand, Singapore and Malaysia, a significant step that provides direct entry into cleaning, kitchen appliances and haircare products in these four countries. In addition, the new Shark FlexStyle hair care product and the Ninja Creami ice cream maker were launched in APAC. Ninja Creami became the largest product category for SharkNinja APAC in the Australia market immediately after launch, driving revenue growth in the Australia market.
Future Prospects
Joyoung will continue to focus on its core business of small home appliances, aiming to improve the success rate of product innovation through deeper consumer insights. This will be driven by technological innovation that will provide users with better long-term and high-value services with higher product quality and stability.
The SharkNinja APAC segment will focus on the development and expansion of the Asia Pacific region (excluding Mainland China). It will focus on the top 25 cities in the Asia Pacific segment, focusing on three dimensions, namely “growth of existing categories”, “launch of new categories,” and “expansion into new markets”. This includes continuing to drive growth in core categories in Japan, as well as directly entering new countries or regions such as Australia, New Zealand, Singapore and Malaysia. It will also work with major retailers in these countries to launch products through localized sales teams.
The Group believes that demand for its products will remain strong in the near future as it continues to diversify its product portfolio and bring innovative products to different markets, driving revenue growth and bringing positive returns to shareholders.
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[1] ODM, stands for Original Design Manufacturer |
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[2] sources from Gfk |
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SOURCE JS Global Lifestyle
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