Yue Yuen announced its unaudited consolidated results for the nine-month period that ended on the 30^th of September. The group reported a 1.5% increase in revenue, as compared to the same period in 2023, reaching 6.08 billion US dollars, driven by a 9.0% year-over-year growth in the manufacturing business.

Footwear manufacturing revenue rose by 8.2%, on a comparable basis to 3.78 billion US dollars, reflecting strong demand for athletic, casual and outdoor footwear categories. In contrast, sales of Pou Sheng, Yue Yuen’s retail subsidiary in the Greater China region, decreased by 11.6% to 1.9 billion US dollars, as compared to the same period last year.

The group’s gross profit increased by 4.5%, as compared to the first nine months of 2023, reaching 1.5 billion US dollars. Gross profit for the manufacturing business rose by 18.8% on a comparable basis to 812.3 million US dollars.

Overall, the gross profit margin for the company as a whole and the manufacturing business increased by 0.7 and 1.6 percentage points, respectively. This growth reflects higher capacity utilisation and improved production efficiency despite a decline of 6.8%, as compared to the first nine months of 2023, in average selling price due to product mix changes.

Selling and distribution expenses decreased by 8.3% and administrative expenses declined by 1.2% year-on-year. Profit attributable to the company’s owners increased by 140.9%, as compared to the same period last year, reaching 331.7 million US dollars. This improved profitability was supported by streamlined operations and higher production volumes.
 

Outlook

While the group’s cost-control initiatives have improved its expense ratios, external challenges persist. However, Yue Yuen remains optimistic about the demand for high-quality suppliers in the global footwear industry.

Looking ahead, Yue Yuen plans to leverage its operational performance and supplier status to navigate the challenging business environment. The group anticipates steady growth driven by its strategic investments in capacity expansion, flexible production models and customer-centric partnerships.