China Jo-Jo Drugstores Reports Revenue Increase, Narrowed Losses
The stock of China Jo-Jo Drugstores Inc. (Nasdaq: CJJD) ended nearly 2 percent higher Monday, at $1.12 per American depositary share, after it announced improved financial results for the year through March.
In a statement today, the Hangzhou-based company, which sells healthcare products, said its revenue in the twelve months through March reached $107.6 million, at a 12 percent increase year-over-year.
"Over the course of the 2019 fiscal year we made great strides in improving our operations," Jo-Jo's chairman and chief executive officer, Lei Liu, said in a statement today. "We look forward to further improving our operations and continuing to provide effective and efficient services to our loyal customer base for the coming years."
Sales in its wholesale business grew the most year-over-year, by 20 percent to $26.4 million, Jo-Jo said. Its retail drugstores saw an increase of 17 percent to $72.3 million. Its online pharmacy line, however, suffered a 28 percent decline to $8.8 million, attributed to the suspension of over-the-counter (OTC) drug sales. Jo-Jo said it is adding other health products, such as nutritional supplements, to offset the drop.
The company's net loss narrowed to $1.3 million, or 3 cents per share, compared with $17.1 million, or 68 cents per share, for the fiscal year 2018.
Loss from operations was $880,000, at a huge decline from $18 million the prior year, Jo-Jo said. The operating margin was nearly negative 1 percent compared with a negative 19 percent.
Jo-Jo said it had $24.8 million in cash and restricted cash as of Mar. 31.