Goodbaby to grow on mainland

PUBLISHED : Tuesday, 22 March, 2011, 12:00am
UPDATED : Tuesday, 22 March, 2011, 12:00am

Goodbaby International Holdings has announced plans to step up its mainland presence ahead of an expected surge in domestic consumption.

The group yesterday announced its first annual results since its listing last year. It said revenue rose 22.7 per cent year on year to HK$3.72 billion, reflecting growth in overseas and mainland markets.

The manufacturer and distributor of children'sproducts, including car seats, cribs and strollers, generated most of its revenue in North America, which contributed HK$1.29 billion in sales revenue. Next was Europe, which contributed HK$1.11 billion, and China, with HK$830.4 million.

The fastest growth was also recorded in the North America segment, which reported 28.7 per cent revenue growth, followed by Europe with 19.7 per cent growth and China, with 13.7 per cent.

Song Zhenghuan, the group's chairman and CEO, said it would seek to boost market share and mainland growth by strengthening local networks and brand awareness.

About 50 million yuan (HK$59 million) is also earmarked for advertising and marketing campaigns to raise brand awareness on the mainland. The group said it planed to expand its sales networks to cover maternity and childcare stores, as sales growth in department stores slows.

Despite concerns about inflation, increased labour costs and the impact of yuan appreciation, Liu Tongyou, vice-president and chief financial controller, expected it to be able to maintain, or even raise, its gross profit margin of 20 per cent and continue double digit revenue growth.

Operating profits reached HK$203.2 million, up 23.6 per cent year-on-year, or 43.2 per cent. Gross profit rose 30.5 per cent to HK$742.6 million, and net profit jumped 140.5 per cent to HK$150.9 million. Basic earnings per share were 18 Hong Kong cents, up 125 per cent from the year-earlier period.