China Jo Jo Drugstores turns to profit in December quarter
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Online and offline pharmaceutical and healthcare retailer and wholesaler China Jo-Jo Drugstores boosted revenue by 7.9 percent in the December quarter
“We delivered outstanding financial results for the third quarter of 2020, with revenue recording $33.36 million,” said chairman and CEO Lei Liu.
“Benefiting from the growth in retail drugstores and online pharmacy businesses as well as our strong competitive position in the industry, all of our core businesses performed in line with our expectations.”
Liu said China Jo Jo was preparing for the coronavirus outbreak by trying to optimize its inventory and ensure it had effective distribution channels to meet the strong domestic demand of pharmaceutical and other healthcare products and services.
China Jo Jo’s gross profit increased by 2.1 percent to $7.28 million for the quarter, but gross margin decreased by 1.3 percentage points to 21.8 percent.
Net income for the US-listed company was $460,000, compared to a loss of $2.21 million during the same period a year earlier.
Questions & Answers
Q.What was the main reason for the improved financial performance in the December quarter?
What was the main reason for the improved financial performance in the December quarter?
The company reported strong growth in both its retail drugstores and online pharmacy businesses. This, combined with its competitive market position, contributed to the positive financial results for the quarter.
Q.How did the gross profit margin change for China Jo Jo Drugstores?
How did the gross profit margin change for China Jo Jo Drugstores?
While gross profit increased by 2.1 percent to $7.28 million, the gross margin actually decreased. It fell by 1.3 percentage points, settling at 21.8 percent for the December quarter.
Q.What actions did China Jo Jo take in preparation for the coronavirus outbreak?
What actions did China Jo Jo take in preparation for the coronavirus outbreak?
The company focused on optimising its inventory levels and ensuring its distribution channels were effective. This was to meet the strong domestic demand for pharmaceutical and healthcare products and services during the outbreak.
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