Nine months of growth have been reported by Hong Kong-based Taiwanese footwear manufacturer Yue Yuen Industrial (Holdings).
Revenue rose 6.7 per cent year on year to US$6.7 billion in the period, while profit attributable to the owners of the company increased by 4.5 per cent to $395.9 million. Excluding non-recurring items, the recurring profit attributable to the company owners amounted to $375 million, an increase of 4 per cent.
Total revenue for footwear manufacturing activity in the period increased by 1.5 per cent,
whereas the volume of shoes sold increased by 1.1 per cent to 238.7 million pairs.
Retail business, including Pou Sheng, grew by 19.4 per cent to $2.2 billion for the nine months. Pou Sheng revenue for the nine months increased by 14.1 per cent to RMB13.8 billion (US$2 billion).
Group gross profit grew by 9.2 per cent to $1.7 billion while gross profit for the manufacturing business, involving international brands, was up 3.6 per cent to $934.7 million, with a gross profit margin of 20.7 per cent.
Yue Yuen says the improvement was mainly because of improved efficiency through labour cost savings. Pou Sheng had a gross profit improvement of 6.3 per cent to $701.9 million through higher store sales.
Yue Yuen makes athletic and casual shoes as well as sandals for such brands as Adidas, Asics, New Balance, Converse, Nike, Puma, Reebok, Salomon, Timberland and Under Armour. It has factories in China, Indonesia, Vietnam and other areas in Asia.