China Nepstar boosts gross sales, reduces loss
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NYSE-listed China Nepstar Chain Drugstore has introduced a similar retailer gross sales improve of 13.6 per cent for the primary quarter.
Complete income elevated by 11.9 per cent to RMB759.1 million, or US$122.5 million and it posted a lack of $500,000, only one fifth of that of the identical interval final yr.
Chairman Simin Zhang stated the improved efficiency was the results of decreasing administrative bills, leveraging its retailer community and growing in-store promotions and advertising efforts for pharmaceutical merchandise.
In the course of the first quarter of 2015, China Nepstar opened 26 new shops and closed 37, leaving it with 1969 immediately operated retail shops as at March 31.
The corporate expanded its personal label vary to 2146 varieties of merchandise as at March 31, with gross sales of personal label merchandise now representing 15.four per cent of complete income and 22.7 per cent of gross revenue.
Zhang stated the corporate is happy by the momentum in its enterprise improvement within the first quarter of 2015.
“We’ll proceed to give attention to sustaining progress, managing bills and enhancing margins. We consider that our robust retailer community, optimised product choices and proactive steps to enhance buyer expertise and loyalty, will proceed to drive retailer visitors and income within the close to time period,” stated Zhang.
Based mostly on retailer numbers, China Nepstar Chain Drugstore is one in every of China’s largest retail drugstores with retailers in 74 cities and 15 regional distribution centres.
Questions & Answers
Q.How did China Nepstar manage to reduce its net loss in the first quarter?
How did China Nepstar manage to reduce its net loss in the first quarter?
The company reduced its net loss by decreasing administrative expenses. It also used its store network and increased in-store promotions and marketing efforts for pharmaceutical products.
Q.What was the total number of directly operated stores China Nepstar had at the end of the first quarter?
What was the total number of directly operated stores China Nepstar had at the end of the first quarter?
At March 31, China Nepstar had 1969 directly operated retail stores. This number resulted from opening 26 new stores and closing 37 during the first quarter of 2015.
Q.How significant are own-label products to China Nepstar's overall sales and profitability?
How significant are own-label products to China Nepstar's overall sales and profitability?
Own-label products represent 15.4 per cent of total income. They also account for 22.7 per cent of the company's gross profit, showing their importance to profitability.
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