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Net Profit Surges 132% to HK$57.1 Million
Proprietary Chinese Medicines Witness Robust Growth of 54.5%
Recommends Final Dividend of HK2.5 Cents Per Share |
HONG KONG, June 15, 2023 - (ACN Newswire) - JBM (Healthcare) Limited ("JBM Healthcare" or the "Company"; Stock Code: 2161, together with its subsidiaries, the "Group"), a leading branded healthcare products marketer and distributor in Hong Kong, today announced the annual results of the Group for the year ended 31 March 2023 ("FY2023" or the "Reporting Period").
KEY HIGHLIGHTS
-- Year-on-year revenue up by 28.1% totalled HK$520.3 million
-- Profit attributable to equity shareholders increased by 132%, amounting to HK$57.1 million
-- Proprietary Chinese medicines business witnessed robust growth of 54.5%
-- The Board recommends a final dividend of HK2.5 cents per share
-- Cross-border e-commerce business gained tremendous traction alongside expanded product offerings and growing customer traffic
-- Rosy growth prospect of the proprietary Chinese medicine business substantiated by increasing consumer acceptance and a broadened geographic reach
Amidst the steady recovery in Hong Kong's economy fueled by the gradual easing of COVID-19 restrictions, the Group witnessed a notable rise in overall sales, propelled by improving consumer sentiment. During the Reporting Period, the Group's total revenue was HK$520.3 million, reflecting a remarkable growth of 28.1%, driven primarily by the strong performance of proprietary Chinese medicines.
The Group's gross profit amounted to HK$205.5 million, an increase of 27.2%, while the consolidated profit attributable to equity shareholders amounted to HK$57.1 million, a significant increase of 132%. Such an increase was mainly attributable to the uplifted revenue of the Group's cross-border e-commerce business, alongside the strong performance of the proprietary Chinese medicine business.
The Board recommends a final dividend of HK2.5 cents per share. Including the interim dividend of HK0.5 cent per share already paid, the total dividend for FY2023 would be HK3.0 cents per share.
Market-Driven Portfolio Bolstered Resilient Performance
Despite the market challenges posed by COVID-19, JBM Healthcare's portfolio demonstrated resilience during the Reporting Period. Carrying a range of well-known brands spanning branded medicines, proprietary Chinese medicines and health supplements, the Group delivered consistent revenue growth, driven primarily by strong performance in proprietary Chinese medicines coupled with a promising cross-border e-commerce sales trend.
On the proprietary Chinese medicines business, sales revenue surged by 54.5% to HK$359.8 million, as the stabilisation of the pandemic led to a gradual recovery in retail sentiment and increased demand for Chinese medicine services. This growth was driven by the strong momentum of the Concentrated Chinese Medicine Granules ("CCMG") business, as well as the significant increase in sales of Po Chai Pills.
Cross-Border E-commerce Development Gained Traction
The Group's cross-border e-commerce business in the PRC has gained strong momentum, experiencing significant growth compared to the previous period.
The Group's two self-operated flagship stores on Tmall Global Marketplace and JD Worldwide made significant strides in expanding the market share and customer base during the Reporting Period. With the strong performance of the Group's leading brand product, Ho Chai Kung Tji Thung San, our flagship store achieved a top ranking on Tmall and secured the No.1 position in the "OTC-International" and "OTC-Pain Killer" categories during the Double 12 Event. Other popular brand products like Po Chai Pills also demonstrated promising growth in the Reporting Period.
The Group has also expanded its domestic e-platform, Go-Smart, allowing prospective customers in the PRC to gain access to making purchases on JBM Healthcare's health supplement products.
Capturing Growth Potential in Chinese Medicines
To facilitate the entry of Hong Kong traditional propriety Chinese medicines into the Greater Bay Area, the government of Guangdong Province has introduced streamlined measures to enable eligible proprietary Chinese medicines for external use to apply for registration with the Guangdong Provincial Medical Products Administration (GDMPA). Leveraging this favorable policy, the Group has successfully obtained registration approval for its medicated oil brands, Shiling Oil and Konsodona Medicated Oil, in the Greater Bay Area, anticipating the launch of the products in the market in the near term.
Acquisition to Enhance Portfolio and Platform
The Group recently completed the acquisition of a joint venture company specialising in developing and marketing health and wellness product brands. The joint venture company has established a robust distribution network for proprietary medicines and health and wellness products, including the development of supplement brands "SEASONS" and "Slimming Expert". With this acquisition, the Group aims to enhance its health and wellness portfolio and distribution platform, capitalising on the rising consumer healthcare market in the Greater Bay Area.
Mr. Patrick Wong, Chief Executive Officer of JBM Healthcare, said, "In FY2023, JBM Healthcare demonstrated resilience despite challenges from the fifth wave of the epidemic and external market pressures. Our strengths lie in our robust portfolio of well-known brands, alongside strong commercial execution and adaptability to market changes.
We are optimistic about the healthcare sector's future outlook. Our focus is on promoting operational excellence as we pursue growth strategies. These include expanding our e-commerce platforms, leveraging the potential of proprietary Chinese medicines in the Greater Bay Area, aligning our product portfolio with a strong commercial execution. By doing so, we aim to provide consumers with high-quality branded healthcare products that help them manage their health effectively, advancing our mission of Enabling Better Health Through Self-Care."
About JBM (Healthcare) Limited (Stock Code: 2161)
JBM Healthcare is a Hong Kong-based company that markets and distributes branded healthcare products across Greater China, Southeast Asia and certain other countries. The Group is a unique sector player with marketing expertise and a drug heritage that prioritises product efficacy and quality to meet consumers' healthcare needs. As a renowned healthcare brand operator in Hong Kong, the Group carries a wide-ranging portfolio of branded healthcare products comprising branded medicines, proprietary Chinese medicines and health and wellness products, which include well-recognised household brands such as Po Chai Pills, Ho Chai Kung Tji Thung San, Contractubex, BITE-X, Mederma for Kids, Tong Tai Chung Woodlok Oil, Flying Eagle Woodlok Oil, Saplingtan, Shiling Oil and Konsodona Medicated Oil. JBM Healthcare has been a constituent stock of the MSCI Hong Kong Micro Cap Index since 27 May 2021. For more details about JBM Healthcare, please visit: www.jbmhealthcare.com.hk
For media inquiries, please contact:
Strategic Financial Relations Limited
Vicky Lee Tel: (852) 2864 4834 Email: vicky.lee@sprg.com.hk
Rachel Ko Tel: (852) 2114 2370 Email: rachel.ko@sprg.com.hk
Katrina Hui Tel: (852) 2114 4318 Email: katrina.hui@sprg.com.hk
Fax: (852) 2527 1196
Topic: Press release summary
Source: JBM (Healthcare) Limited
Sectors: Healthcare & Pharm
https://www.acnnewswire.com
From the Asia Corporate News Network
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