Yue Yuen Industrial (Holdings) ( (YUEIF) ) has released its Q3 earnings. Here is a breakdown of the information Yue Yuen Industrial (Holdings) presented to its investors.
Yue Yuen Industrial (Holdings) Limited is a leading global manufacturer in the footwear industry, known for its extensive production capabilities and strategic partnerships with major brand customers. The company is also involved in the retail sector through its subsidiary Pou Sheng International.
Yue Yuen Industrial has reported solid financial performance for the nine months ending September 30, 2024, with a notable increase in profit attributable to owners and a slight revenue growth. The company has seen a robust demand in its manufacturing segment, driven by improved production efficiency and strong order fulfillment, although its retail operations faced challenges in mainland China.
Revenue for the period increased by 1.5% to approximately $6.08 billion, while gross profit rose by 4.5% to $1.47 billion. The manufacturing segment experienced a revenue rise of 8.2%, largely due to athletic and outdoor footwear demand. In contrast, Pou Sheng’s retail revenue declined by 11.6%, reflecting the challenging market conditions in China. The company’s profit attributable to shareholders surged by 140.9% to $331.7 million, aided by a one-off gain from partial disposal of associates.
Looking ahead, Yue Yuen remains positive about the demand for high-quality suppliers in the footwear industry, although it acknowledges short-term uncertainties due to global economic factors. The company plans to enhance operational resilience and maintain a strong financial position by pursuing flexible manufacturing strategies and strategic capacity expansion. Despite retail challenges, Yue Yuen is committed to strengthening its market position and delivering value to shareholders through innovation and strategic partnerships.
