Positive Growth Against Headwinds
HONG KONG, Nov. 6, 2021 /PRNewswire/ — Goodbaby International Holdings Limited (“Goodbaby International” or the “Company”, HKEX stock code: 1086, together with its subsidiaries, the “Group“), a globally leading parenting products company, today announced its unaudited revenue performance for the nine months ended 30 September 2021 (the “Period“). The Group recorded revenue of approximately HK$7,112.0 million, representing an increase of 19.5% year-on-year (YoY) (14.3% growth on a constant currency basis).
During the Period, CYBEX brand continued its positive revenue growth momentum, achieving a YoY growth of 36.1% (30.3% increase on a constant currency basis) and kept gaining market share in all key geographic regions. This was mainly driven by its strong brand position and product portfolio — in both car seats and wheeled goods — fortified by innovative product launches. Continuous expansion of national distribution in existing and new markets, improved global operational and supply chain management are also primary contributors for CYBEX’s sustained growth. These positive achievements were partially offset by delayed shipment of orders to customers due to lack of logistic capacities and cost factors, and sporadic business interruptions in EMEA, North America and parts of Asia caused by continued volatilities from coronavirus disease 2019 (“COVID-19”).
gb brand recorded an anticipated temporary revenue decline, resulting from continued rationalization of all key distribution channels, continued decline in birth rate and less offline traffic and consumer confidence caused by intermittent COVID-19 lockdowns in gb’s key China market. The Group expects the rationalization to continue into 2022 to lay a solid foundation for long term sustainable business development, which has been proven by very positive momentum in newly opened new-generation self-owned retail stores. gb continued to modernize and enhance its overall brand image and invest resources towards product development and innovation in both durable and non-durable products.
Evenflo brand recorded a 12.9% (11.9% increase on a constant currency basis) increase in revenue during the Period, which was mainly driven by strong consumer acceptance of new product launches. While the revenue momentum continued to be tempered by product availability challenges resulting from global logistic capacity disruptions and cost factors, increased supply chain remediation initiatives fueled the recorded growth and facilitated its market share increases. The Group is encouraged by the brand’s potential while remaining cautious about the lingering impacts from COVID-19 and the continuing global supply headwinds.
Blue Chip business recorded a significant revenue growth of 42.5% YoY (36.7% increase on a constant currency basis) during the Period. The impressive revenue growth was mainly driven by increasing orders from its customers as their respective markets continue to recover from the impacts of COVID-19. The Group continued to provide robust, value-oriented solutions for its key customers and accordingly, its Blue Chip business remained stable and sound.
During the Period, the Group’s revenue from other businesses, including tactical brands, recorded an increase of approximately 5.5% YoY (1.0% increase on a constant currency basis). The increase was primarily driven by overall business climate recovering from COVID-19 restrictions from the prior period offset by the continued planned rationalization of the respective product portfolios.
Goodbaby International’s CEO Mr. Martin Pos concluded, “Persistent challenges regarding the cost, service and availability of global logistic supply chain networks have further disrupted the global business environment already hit by the lingering impacts from COVID-19. We remain very focused on controlling what we can control to deliver positive performance and navigate the unprecedented supply chain environment and macro issues including inflationary pressures. We expect the general business environment to remain challenging for the rest of the year with continued high costs for material and particularly in transportation. While we remain cautious throughout these challenges, we are encouraged by the Group’s ability to continue to gain market share primarily through continued product innovation and adequate inventory supply. The Group will continue to implement the necessary actions to preserve both its short-term and long-term goals.”
For more details, please refer to the announcement:
About Goodbaby International Holdings Limited
Goodbaby International Holdings Ltd. is a world leading parenting products company. The Group serves millions of families around the world through design, research and development, manufacture, marketing and sales of children’s car safety seats, strollers, apparels and home textile products, feeding, nursing and personal care products, cribs, bicycles and tricycles and other children products.