JS Global Lifestyle Company (1691) H2 2023 earnings summary

Executive summary

• Continuing-operations revenue fell 3.2% YoY to US$1,428.7m; profit declined 37.0% to US$70.3m, with weaker Joyoung sales and spin-off-related costs weighing on results.

• The July 2023 spin-off left continuing operations comprising Joyoung and SharkNinja APAC.

Financial highlights

• Continuing-operations gross profit fell 9.3% to US$486.6m; reported gross margin was 34.1%, down 2.3 percentage points YoY.

• Excluding sourcing, gross profit was $392mn and gross margin was 32.5%, up 0.1 percentage point YoY.

• Continuing-operations EBITDA was US$116.5m, down 31.1%; adjusted EBITDA was US$83.9m, down 56.6%, and adjusted net profit was US$37.7m, down 72.2%.

• Continuing-operations EPS was 1.5 cents, versus 2.5 cents in 2022; profit from continuing and discontinued operations was US$150.0m, down 58.1%.

• Other income and gains rose to US$94.5m from US$21.3m, including US$46.3m net fair-value gains and a US$15.3m gain on disposal of associates.

Segment performance

• Joyoung third-party revenue fell 20.5% YoY to US$1,053.1m; constant-currency decline was 16.6%, reflecting soft Chinese Mainland demand and intense competition.

• SharkNinja APAC third-party revenue grew 137.4% YoY to US$151.7m; constant-currency growth was 144.9%, supported by Japan vacuum gains and market expansion through acquisitions.

• SharkNinja APAC gross margin on third-party sales rose to 42.2% from 39.6%; Joyoung’s fell to 31.1% from 32.1%.

• Japan revenue reached US$91.8m, up 43.7% YoY; Australia and New Zealand generated US$43.8m after acquisitions, while other markets grew 74.6% to US$31.6m.

• Joyoung overseas income fell to CNY1,326mn in 2023 from CNY2,239mn in 2022; ODM income was the main source.