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China Jo-Jo Drugstores Reports First Quarter 2019 Financial Results

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China Jo-Jo Drugstores Reports First Quarter 2019 Financial Results

PR Newswire

HANGZHOU, China, Aug. 14, 2018 /PRNewswire/ -- China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD) ("Jo-Jo Drugstores" or the "Company"), a leading online and offline retailer and wholesale distributor of pharmaceutical and other healthcare products and a healthcare provider in China, today announced its financial results for the first quarter ended June 30, 2018.

Mr. Lei Liu, Chief Executive Officer and Chairman of Jo-Jo Drugstores, Inc., commented, "We continue to emphasize our retail strategy as we report our first quarter results for fiscal year 2019. Our gross margin for retail drug stores for the first quarter was 30.1%, up from 25.2% from the same period last year, as we emphasized increasing profit margins, introducing new suppliers, and renegotiating prices with our suppliers in our adjustments to corporate operational strategy. This margin expansion was coupled with a healthy 22.6% increase in revenue from retail drugstores year over year as we continue to execute on our strategy to capture the high-income Hangzhou urban center market. We are pleased with these strong results to start the new fiscal year as we continue to improve our business fundamentals and grow our market share in the expanding healthcare market."  

First Quarter of Fiscal 2019 Financial Highlights




For the Three Months Ended June 30,

($ millions, except per share data)


2018


2017


% Change

Revenue


22.77


21.67


5.1%

      Retail drugstores


15.97


13.02


22.6%

      Online pharmacy


2.02


3.14


-35.5%

      Wholesale


4.78


5.51


-13.3%

Gross profit


5.62


4.18


34.4%

Gross margin


24.7%


19.3%


5.4 pp*

Loss from operations


-0.56


-1.46


-61.4%

Operating margin


-2.5%


-6.8%


4.3%

Net loss attributable to Jo-Jo Drugstores


(0.65)


(1.42)


-54.5%

Loss per share


(0.02)


(0.06)


-62.8%


*Notes: pp represents percentage points

 

  • Revenue increased by 5.1% to $22.77 million for the three months ended June 30, 2018 from $21.67 million for the same period of last year.
  • Gross profit increased by 34.4% to $5.62 million for the three months ended June 30, 2018 from $4.18 million for the same period of last year.
  • Gross margin increased by 5.4 percentage points to 24.7% from 19.3% for the same period of last year.
  • Net loss attributable to Jo-Jo Drugstores decreased by 54.5% to $0.65 million, or $0.02 per basic and diluted share, for the three months ended June 30, 2018 from $1.42 million, or $0.06 per basic and diluted share, for the same period of last year.

First Quarter of Fiscal 2019 Financial Results

Revenue

Revenue for the three months ended June 30, 2018 increased by $1.10 million, or 5.1%, to $22.77 million from $21.67 million for the same period of last year. The increase in revenue was primarily due to the increase in retail drugstores business, partially offset by the decrease in online pharmacy business and wholesale business.



For the Three Months Ended June 30,



2018


2017

($ millions)


Revenues


Cost of
Goods


Gross
Margin


Revenues


Cost of
Goods


Gross
Margin

Retail drugstores


15.97


11.16


30.1%


13.02


9.74


25.2%

Online pharmacy


2.02


1.74


13.9%


3.14


2.84


9.3%

Wholesale


4.78


4.25


11.1%


5.51


4.91


10.9%

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