JS Global Lifestyle Company (1691) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 29.5% year-on-year to US$743.0 million, driven by strong SharkNinja APAC growth, while Joyoung segment revenue remained flat or slightly declined.

• Gross profit increased to US$245.8 million (+15.2%), but gross margin declined to 33.1% from 37.2% due to product mix and higher costs.

• Net profit from continuing operations fell 35.9% to US$29.6 million, with adjusted net profit down 69.2% to US$16.0 million, reflecting higher expenses and one-off items.

• EBITDA dropped 43.0% to US$41.7 million, and adjusted EBITDA declined 64.4% to US$28.1 million.

• No interim dividend was declared for the period.

Financial highlights

• SharkNinja APAC segment revenue surged 153.3% year-on-year to US$123.1 million, with strong growth in Japan, Australia, New Zealand, and South Korea.

• Joyoung segment revenue from third-party customers was US$487.2 million, down 0.8% year-on-year, but up 3.3% on a constant currency basis.

• Gross profit margin on sales to third-party customers improved to 35.2% from 33.2% year-on-year, mainly due to premiumization and cost productivity in SharkNinja APAC.

• Inventory turnover days improved to 45 days from 51 days in 2023; trade payables turnover days dropped to 176 from 202.

• Cash and cash equivalents stood at US$362.3 million as of June 30, 2024; no borrowings at period end.

Outlook and guidance

• Focus on sustainable growth through product innovation, expanding sales networks, and new market entry in Asia Pacific.

• Joyoung to emphasize health, innovation, digital engagement, and rapid response to market needs.

• SharkNinja APAC to target top 25 cities, launch new categories, and expand into Southeast Asia.

• Management remains optimistic about long-term growth in Asia Pacific despite global macroeconomic volatility.