Yue Yuen earnings down 20.9% in first quarter

Hong Kong
Published:  16 May, 2019

In the first quarter of 2019, total revenue attributable to the Group’s footwear manufacturing activity (including athletic shoes, casual/outdoor shoes and sports sandals) increased 6.4% and production +6.7%.

Yue Yuen’s footwear manufacturing revenue increased 6.4% in the three months ended March 31, 2019 to US$1,283.8 million compared with the same quarter in 2018. The volume of shoes produced increased 6.7% to 81.7 million pairs, while the average selling price per pair remained stable at US$15.72. The Group’s revenue with respect to the whole manufacturing business (including footwear, as well as soles, components and others) totalled US$1,395.3 million in the period, up 5%. During the period, the revenue attributable to Pou Sheng, the Group’s retail subsidiary, increased 13.7% to US$976.1 million (Q1 2018: US$858.5).

All Group activities combined, including retail, Yue Yuen’s total revenue amounted to US$2,479.4 million, representing an 8.4% increase against US$2,287.4 million recorded in the prior year period. However, Group earnings decreased 20.9% to US$75.5 million, against US$95.4 million recorded in the same period of 2018, mainly due to a reduction of the share of results from associates and joint ventures, as well as higher finance costs during the period, according to Yue Yuen.

Yue Yuen has manufacturing plants in China, Vietnam and Indonesia, which produce around 300 million pairs of shoes each year for brands such as Nike, Adidas, Reebok, New Balance, Puma and Timberland.