JS Global Lifestyle Releases 2020 Financial Results, Profit Surges Nearly Fourfold
HONG KONG, March 31, 2021 /PRNewswire/ -- JS Global Lifestyle Company Limited ("JS Global" or "the Company"; Hong Kong: 1691), a leading producer of small household appliances, released its financial results for 2020. Despite the adverse impact of the COVID-19 epidemic, the Company booked strong performances in 2020, driven by the positive results from its international expansion and new product launches.
In 2020, JS Global reported a total revenue of nearly $US4.2 billion, up 39.1% year-on-year, and it recorded a gross profit of approximately $US1.74 billion, up 54.7% year-on-year. The Company last year booked a gross profit margin of 41.5%, a substantial increase of 4.1 percentage points from 37.4% in 2019.
Meanwhile, the Company's net profit in 2020 expanded by 372.2% year-on-year to approximately $US402.3 million, and its net profit attributable to owners of the parent increased by about 718.1% year-on-year to about $US344.4 million.
The profit surge was primarily driven by the steady growth of revenue generated in both domestic and overseas markets, as well as the Company's successful launch of a series of new products last year.
Along with its subsidiaries, JS Global operates through two business segments. Its SharkNinja segment focuses on the Shark and Ninja brands featuring home environment appliances and kitchen appliances which are sold in North America, Europe and Japan, among others. The Joyoung segment offers small household appliances, focusing on kitchen and cleaning appliances, primarily in China.
Strong international expansion
In 2020, with respect to growth through its sales network, JS Global focused on expanding internationally, boosting further growth in the U.K. and Japan. It also successfully tapped into the German and French markets and started working with major retailers in these countries to have the products placed through local sales teams.
JS Global's revenue generated from sales in North America amounted to $US2.21 billion in 2020, an increase from about $US1.46 billion in 2019. The growth in North America was mainly driven by the successful launch of a series of new products, such as Ninja Foodi™ series of cooking appliances and Shark cleaning appliances. The Company capitalized on the trend of changing shopping habits of consumers during the pandemic and increased its investment in the e-commerce channel which saw significant growth.
As consumers' buying preferences transitioned from offline to online channels, the proportion of sales on retailers' online platforms and those dedicated solely to the online channel increased. This reinforced JS Global's omni-channel approach to distribution, ensuring that it was able to support consumer demand, which remained strong due to increased usage of cooking and cleaning products driven by the 'stay at home economy' born out of the pandemic.
In addition, the Company's Europe business last year booked a revenue of about US$451.3 million, up from $US221.7 million in 2019. The strong revenue growth in Europe was primarily driven by the continuously increasing market share of cordless and corded vacuums in the U.K. The Company has successfully secured additional product placements at key retailers in the U.K., and it has launched the Ninja Foodi™ series of products in the European market, which also contributed to the growth.
Business thriving in China
The revenue generated by the sales in China reached nearly $US1.44 billion in 2020, up from $US1.27 billion in 2019. The sales growth was mainly driven by the launch of a series of popular new products in response to the demand of consumers for health and cooking at home during the epidemic and the Company's exploration of emerging sales and communication channels such as new retail and online live streaming.
In 2020, the Joyoung segment, which mainly operates in China, achieved stable revenue growth by leveraging the Company's strength in digital marketing, live stream shopping as well as optimizing operation efficiency.
Going forward
JS Global is committed to driving sustainable long-term growth and strengthening the market position as a global leader in small household appliances through sales network and product expansion. The Company plans to further drive synergies between its Joyoung segment and SharkNinja segment on both the cost side and the sales side.
Additionally, JS Global plans to expand into new product categories, including the personal care category and air purifiers. It will also continue to develop the portfolio within existing categories including additional cookware products, new products within the Ninja Foodi™ series and a new series of cordless vacuums.
About JS Global
JS Global Lifestyle Company Limited (Hong Kong: 1691) is a world leading producer of small household appliances. It ranks fifth globally in the small household appliance industry and third among small household appliance-focused companies. It primarily operates three major brands: Shark, Ninja and Joyoung. The Company's success is centered around its deep understanding of consumer needs, and is built on its strong product innovation and design capability powered by a global research and development platform, marketing strengths driving high brand engagement, and an omni-channel distribution coverage with high penetration.
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