China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD), which operates retail pharmacies in the People’s Republic of China, reported financial results for the third quarter and nine-month period of fiscal 2011 ended December 31, 2010.
Third Quarter Highlights:
- Revenues increased 20.9% to $18.0 million
- Introduction of alcohol sales contributed $2.2 million to Q3 revenue
- Gross profit rose 11.8% to $5.3 million resulting in gross margin of 29.5%
- 3 new stores opened bringing fiscal year-to-date total to 24 new locations
Third Quarter Results
Third quarter revenue increased 20.9% to $18.0 million compared to $14.9 million in the third quarter of fiscal 2010. The year-over-year increase is primarily attributable to the introduction of alcohol sales in 40 locations, as well as sales from new stores. Comparable store revenues, which the Company defines as stores open for 15 months or more, decreased 6.6%, primarily reflecting a decline in sales of Medical Devices and Traditional Chinese Medicine during the quarter.Third quarter gross profit increased 11.8% to $5.3 million from $4.8 million a year ago. Third quarter gross margin was 29.5%, which is in line with the Company’s previously stated expectations and compares to 31.9% in the 2010 quarter. Selling expense was $1.3 million in the third quarter of fiscal 2011 versus $0.9 million in the same period of fiscal 2010. The year-over-year increase reflects an additional 27 stores in operation during the quarter, as well as the Company’s ongoing efforts to build increased awareness of the China Jo-Jo Drugstores brand. Third quarter general and administrative expenses were $1.2 million compared to $0.4 million in the year ago period, reflecting the support of an additional 27 stores in operation during the quarter, as well as additional costs associated with being a publicly traded company.