JS Global Lifestyle Company (1691) H2 2024 earnings summary

Executive summary

• Revenue grew 11.5% year-over-year to $1.59 billion in 2024, driven by strong SharkNinja APAC expansion, offsetting a 3% decline in Joyoung due to competition and weak demand.

• Gross profit increased to $510 million, with gross margin improving to 34% due to premium launches and cost optimization, but net profit and EBITDA declined sharply due to higher expenses and one-off items.

• SharkNinja APAC achieved significant growth, especially in Japan, Australia, New Zealand, and South Korea, with new product launches and market entries in Southeast Asia.

• The SharkNinja Group spin-off in July 2023 redefined continuing operations, now focused on Joyoung and SharkNinja APAC.

• Enhanced ESG initiatives included 100% supplier audit compliance, expanded social welfare projects, and improved ESG ratings.

Financial highlights

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

• Gross profit was $510 million, with adjusted gross margin at 34%; net profit from continuing operations fell 87.5% to $8.8 million.

• Adjusted net profit was $7.1 million, excluding non-recurring items.

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

• Basic and diluted EPS from continuing operations were $0.2 cents, down from $1.5 cents in 2023.

Segment performance

• SharkNinja APAC revenue surged 125.6% to $342 million, with its share of total revenue rising from 12.6% to 25.1%.

• Joyoung revenue decreased by 3.1% to $1,020.9 million, mainly due to softness in water purifiers and cookware.

• Australia and New Zealand contributed 43% of SN APAC revenue, up over 200% year-over-year; Japan contributed 32.7%, up 30%; 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 $147.2 million; Japan up 22.1% to $112.1 million; other APAC markets up 216.1% to $99.9 million.