JS Global Lifestyle Company (1691) H2 2024 earnings summary

Executive summary

• Revenue from continuing operations rose 11.5% year-over-year to US$1,594 million in 2024, driven by strong growth in SharkNinja APAC, offsetting a slight decline in Joyoung segment sales.

• Gross profit increased to US$510.2 million, but net profit from continuing operations fell sharply due to higher expenses, one-off items, and Joyoung's performance.

• SharkNinja APAC achieved significant growth, expanding market share and launching new products in Japan, Australia, New Zealand, South Korea, and Southeast Asia.

• Joyoung remains the largest revenue contributor but faced fierce competition and a challenging consumption environment, with revenue declining.

• SharkNinja Group's spin-off in July 2023 redefined continuing operations, focusing on Joyoung and SharkNinja APAC.

Financial highlights

• Total income from continuing operations reached US$1.59 billion, up 11.5% year-over-year; adjusted business revenue was US$1.36 billion, up 13.1%.

• Gross profit rose to US$510 million, with gross margin at 32.0%; adjusted gross margin rate increased to 34.0%.

• Adjusted net profit was US$7.1 million, excluding non-recurring items; net profit margin increased to 0.6%.

• Net profit declined significantly, mainly due to Joyoung's performance and ongoing SN APAC investments.

• No final dividend was proposed for 2024 to prioritize investment in Asia-Pacific growth.

Segment performance

• SharkNinja APAC segment revenue surged 125.6% to US$342.3 million, with its share of group revenue rising from 12.6% to 25.1%.

• Joyoung segment revenue from third-party customers fell 3.1% to US$1,020.9 million, mainly due to softness in water purifiers and cookware.

• Australia and New Zealand accounted for 43% of SN APAC revenue, up over 200% year-over-year; Japan contributed 32.7% with 30% growth; South Korea's share increased from 8.4% to 20.6%.

• Gross margin for SharkNinja APAC improved to 47.6%, while Joyoung's margin declined to 29.4%.

• ANZ revenue grew 236.1% to US$147.2 million; Japan up 22.1% to US$112.1 million; other APAC markets up 216.1% to US$99.9 million.