China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD), a retail pharmacy chain in Zhejiang and Shanghai, today reported record revenue for the second quarter of fiscal year 2012 ended September 30, 2011. The Company will hold its second quarter fiscal 2012 earnings call on Wednesday, November 16, 2011 at 8:00 a.m. Eastern Time.
Second Quarter Highlights:
- Revenue increased 42% from a year ago to a record $22.2 million
- Gross profit increased 42% to $6.26 million; gross profit margin held steady at 28%
- Net income attributable to controlling interest rose to $1.634 million from $1.627 million
- Diluted and basic earnings attributable to controlling interest were $0.12 per share, unchanged from a year ago
- Opened one new store and acquired another one during the quarter, bringing total number of stores to 58 stores as of September 30, 2011, compared with 46 a year earlier
- Same-store sales increased 7.7% during the quarter from a year ago
- Generated $15.7 million cash flow from operations in the six months ended September 30, up from $157,924 a year ago
Dr. Lei Liu, Chairman and Chief Executive Officer, stated, “We are very pleased to present another quarter of record revenue. We expanded our chain to 58 stores from 46 a year ago, and we continued to generate robust cash flow while reinvesting in our business.”
During the fiscal second quarter, the Company prepared for the launch of its largest store, the 3,588-square-meter (38,620 square feet) Jiuyintang Store, in Zhejiang’s capital city of Hangzhou. The store, opened in October, combines western and Chinese traditional medicines, and features an in-store clinic, pharmacy, physicians, in-store health consulting and management. The store is developed towards serving affluent customers.In August, the Company finished acquisition of Zhejiang Jiuxin Medicine Co., Ltd. Through the acquisition, the Company obtained a valuable license to purchase medicines and drugs directly from manufacturers, making an important step towards vertical integration.