Jo-Jo Drugstores Posts Smaller Loss On Improving Sales
China Jo-Jo Drugstores Inc. (Nasdaq: CJJD), a pharmacy network and healthcare provider, announced today improving financial results for the first quarter ended June 30 with its net loss shrinking more than 50 percent.
The company said its revenue for the past quarter reached $22.8 million, compared with $21.7 million for the same period last year primarily driven by a 22.6 percent increase in its retail drugstore business. Revenue from the online pharmacy business, however, decreased more than 35 percent to $2.02 million after the company suspended over-the-counter drug sales in 2017 after new government restrictions. Revenue from the wholesale business also suffered a 13 percent drop caused by the departure of a key salesperson, the company said.
Despite the setbacks, Jo-Jo Drugstores managed to improve its financials by increasing profit margins. The Hangzhou-based company reported its net loss attributable to common shareholders was $650,000 for the past quarter, or 2 cents per fully diluted share, compared with net loss of $1.42 million, or 6 cents per share, for the same period last year.
"Our gross margin for retail drug stores for the first quarter was 30.1%, up from 25.2% from the same period last year," said Lei Liu, chief executive officer and chairman of Jo-Jo Drugstores. "As we emphasized increasing profit margins, introducing new suppliers, and renegotiating prices with our suppliers in our adjustments to corporate operational strategy."
The stock of the company dropped nearly 4.5 percent to close at $1.24 per American depositary share in New York.