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, announced its interim results for the six months ended June 30, 2021 (the “Period“). During the Period, lingering impacts from the COVID-19 continued to bring challenges to global markets, nevertheless, the Group’s business remained robust as its core Strategic Brands and Blue Chip business recorded revenue growth. Revenue of the Group increased by 24.5% (16.9% increase on a constant currency basis) to approximately HK$4,627.3 million (1H 2020: HK$3,718.1 million), reaching a record high and its Core Strategic Brands recorded an increase of 23.7% (15.9% increase on a constant currency basis) in revenue from the revenue of the corresponding period in 2020.
CYBEX reached another all-time record high revenue and further gained market shares
During the Period, CYBEX brand recorded significant growth in revenue of 50.4% (39.6% increase on a constant currency basis) to a new all-time record high of approximately HK$1,617.9 million (1H 2020: HK$1,075.6 million). The strong growth momentum across all key global markets is primarily driven by further gaining market shares, continuous expansion of national distribution in existing and new markets, accelerated introduction of new products in car seats and wheeled goods and improved global operational/supply chain management. The launch of new product categories continued expansion of distribution in new markets, as well as the introduction of its own e-commerce platform in Europe and North America will fortify the overall business platform to facilitate further market share gains globally and reinforce its leading position. In addition, CYBEX continued to receive multiple awards from independent European consumer testing organizations during the Period, proving the brand’s steadfast commitment to technologies and design.
gb recorded double digit revenue growth in both online and offline sales by transformation toward digitalization
gb brand recorded an increase in revenue of 7.0% (2.4% decrease on a constant currency basis) to approximately HK$1,211.2 million (1H 2020: HK$1,132.3 million) in the Period. In the key China market, gb brand recorded revenue growth of 10.1% (0.3% increase on a constant currency basis), highlighted by strong growth in the first quarter of 2021 due to the recovery of offline retail traffic and sales. During the second quarter, gb brand realigned all key distribution channels to improve the overall consumer experience and service. Reformation of the wholesale distribution channel and selected store closures and opening are highlights of these aforementioned initiatives. As a result, its self-owned retail channels, both online and offline, recorded double digit revenue growth during the Period. Meanwhile, gb continued to dedicate resources to product development and innovation in both durable and non-durable products, and such efforts have been rewarded by receiving prominent awards, including two Red Dot Design Awards and one iF Design Award.
Evenflo achieved revenue growth driven by strong consumer acceptance of new products
Evenflo’s revenue increased by 12.1% (10.4% increase on a constant currency basis) to approximately HK$937.2 million (1H 2020: HK$836.3 million) during the Period, primarily driven by strong consumer acceptance of new products designed and introduced to enhance the overall brand image. Overall revenue momentum was tempered during the Period by product availability challenges resulting from global supply chain logistics and cost factors. While the overall North American macro environment continues to stabilize due to increased vaccination levels and stimulus relief initiatives, volatility remains due to lingering impact from COVID-19 variants and continuing global supply headwinds.
During the Period, the Blue Chip businessrecorded very strong revenue growth of 38.5% (31.8% increase on a constant currency basis) to approximately HK$642.3 million (1H 2020: HK$463.9 million). The positive revenue growth was driven by increasing orders from customers as their respective markets continue to recover from COVID-19 impacts. The Group continues to provide robust, value-oriented solutions for its key customers and accordingly, the Blue Chip business remains stable and sound.
The Group recorded an increase in revenue of 4.1% (1.6% decrease on a constant currency basis) to approximately HK$218.7 million (1H 2020: HK$210.0 million) from its tactical brands during the Period, 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.
Looking ahead, CYBEX will continue its strong global growth strategy across all key geographic regions and gain market share driven by its current product portfolio, new product launches, new category extensions, strengthened supply chain capabilities, new e-commerce platforms and expansion of national distribution platforms in new geographic territories. gb brand will continue its brand upgrade, further development of digital cloud retail system and social media based owned channels and reformation of its wholesale distribution channel, and its focus on product innovation, technologies and new product launches, which will establish the foundation for growth in revenue and profitability. Evenflo will continue to drive sustainable revenue and market share growth, to launch more profitable products, and to fulfill new awards of business from major retailers as the brand is being recognized for its commitment to overall brand enhancement and product innovation.
Goodbaby International’s CEO Mr. Martin Pos concluded, “Notwithstanding the lingering impacts from COVID-19 and ongoing global supply chain capacity limitations, we are very encouraged by our business development and the proven strength of our business platform. We remain very confident in our overall strategy and will continue to execute our focused strategy in our core Strategic brands and support the ongoing development of our Blue Chip business. In summary, we will stay vigilant regarding any ongoing impacts related to COVID-19 and will implement further necessary proactive measures to ensure the ongoing viability of the Group performance. Our strong global one-dragon model is the key foundational element to continue to achieve significant accomplishments in all environments.”
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.
SOURCE Goodbaby International Holdings Limited