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China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD), a retail pharmacy chain in Zhejiang and Shanghai, today reported record revenue for the third quarter of fiscal year 2012 ended December 31, 2011. The Company will hold its earnings call on Thursday, Feb. 16 at 8:00 a.m. Eastern Time.
Third Quarter Highlights:
Revenue increased 42.1% to a record high of $25.64 million
Gross profit increased 28.1% to $6.83 million
Net income attributable to controlling interest decreased 29.7% to $1.57 million
Two new stores opened during the quarter, bring the store number to 60 by the end of the quarter, compared with 49 a year ago.
Third Quarter Results
Revenue increased 42.1% to $25.64 million for the three months ended December 31, 2011, from $18.04 million for the three months ended December 31, 2010, primarily as a result of wholesale revenue from Zhejiang Jiuxin Medicine Co., Ltd. (“Jiuxin Medicine”) which was acquired in August 2011, and sales from new stores opened since December 31, 2010, offset by same-store sales decrease.
Same-store sales decreased by $1.87 million, or 10.5%, period over period, mainly as a result of shifting certain non-retail sales from Hangzhou Jiuzhou Grand Pharmacy Chain Co., Ltd., which operates most of the Company’s pharmacies, to Jiuxin Medicine.
Gross profit increased by 28.1% to $6.83 million from $5.33 million. Gross margin decreased from 29.5% to 26.6 % as a result of lower gross profit margin from Jiuxin Medicine’s wholesale activities.
Selling expenses increased 86.9% to $2.50 million. The increase is primarily a result of operating 60 store locations as compared to 49 stores that we operated a year ago. Selling expenses as a percentage of our revenue increased from 7.4% to 9.7%.
General and administrative expenses increased 77.2% to $2.18 million. General and administrative expenses as a percentage of our revenue increased from 6.8% to 8.5%. The increase is mainly attributable to the establishment of new subsidiaries in the last calendar year and expenses of being a public company.