CHINA: Yue Yuen H1 profit down on benefit payments
- Net profit down to US$104.1m
- Gross margin widens to 22.4%
- Sales climb 6.8%
Chinese footwear manufacturer Yue Yuen, which was subject to a two-week long strike by its workers in April, has recorded a drop in first-half profits as it booked a provision for employee benefit contributions.
In the six months to the end of June, net profit US$104.1m from $190.3m a year earlier. The group's non-recurring loss totalled around $116.7m.
Gross margin widened to 22.4% from 21.05% in the prior year period, while sales climbed 6.8% to $3.95bn.
Sales of athletic shoes and casual/outdoor shoes were up by 1.1% and 14.2% respectively. Total shoe manufacturing volume, however, was almost unchanged at 158m pairs produced for the period.
With regards to the retail and wholesale business of sportswear in the Greater China Region, sales increased by 12.4 % to $963.2m.
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Yue Yuen Industrial Holdings, the world's largest sports shoe maker, has booked a double-digit increase in first-quarter net profit thanks to higher retail turnover....
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