Jo-Jo Drugstore Reports Revenue Grows 18%, Loss Triples in 2018

The stock of the company was trading up more than 2 percent at $1.43 per share in the afternoon Friday after the company released its annual results.

Anna Vodopyanova
    Jun 29, 2018 11:26 AM  PT
Jo-Jo Drugstore Reports Revenue Grows 18%, Loss Triples in 2018
author: Anna Vodopyanova   

The stock of China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) was trading up more than 2 percent at $1.43 per American depositary share intraday on Friday after the company reported its fiscal year 2018 results.

The Hangzhou-based pharmacy network and a healthcare provider said its revenue in the fiscal year ended March 31 grew nearly 18 percent year-over-year to $96.1 million.

The company attributed the rise in revenue to the increase in retail drugstores and its wholesale business, offset by the decrease in its online pharmacy business. The drugstores accounted for most of the revenue, at nearly $62 million, but the wholesale business grew the most since the prior year, at a 54 percent increase to $22 million.

Net loss during the fiscal year grew to $17.1 million, an increase of 202 percent compared with the loss of $5.6 million for 2017. Loss per share was 68 cents in the current period compared with 28 cents for the prior year.

In the fourth quarter of the fiscal year, the company made $24.1 million in revenue, up 22 percent from a year ago. Net loss during the same period was $12.89 million compared with a loss of $5.03 million in the fourth fiscal quarter of 2017.

The company reported its expenses in fiscal 2018 soared, with sales and marketing expenses growing 45 percent to $18.7 million, while general and administrative costs increased 132 percent to $17.8 million. Jo-Jo attributed the rising expenses to its expanding drugstore network, as well as increased labor and rent costs.

The chairman and chief executive officer of Jo-Jo, Lei Liu, said that the company opened 55 additional drugstores in fiscal 2018. He also said that after the company suspended over-the-counter drug sales in 2017, its online results "began to stabilize as we optimized our product range."

"Our e-commerce segment will continue its evolution following our initiatives to cooperate with commercial insurance companies, such as the People's Insurance Company of China, and other active strategies," Liu added in a statement today.

blob.png 

The stock of the company was trading up more than 2 percent at $1.43 per share in the afternoon Friday after the company released its annual results.

(Source: Thomson Reuters Eikon)

YOU MAY LIKE