China Jo-Jo Drugstores, Inc. (NASDAQ:CJJD), (the “Company”), a retail and wholesale distributor of pharmaceutical and other healthcare products in Zhejiang and Shanghai, today reported earnings results for the first quarter of fiscal 2013 ended June 30, 2012.
The Company will hold a conference on Thursday, August 16, 2012, at 8:00 a.m. Eastern Time. Please see below for dial-in information.
First Quarter Fiscal 2013 Highlights:
- Revenues increased 53.3% to $32.9 million
- Gross profit was $5.1 million and gross margin was 15.7%
- Online pharmacy sales increased 627.2% period over period
- Wholesale business accounted for 65.0% of total revenue
- Diluted and basic earnings per share of $0.04
- First quarter retail drug store revenue improves 16.0% from fourth quarter fiscal year 2012
Dr. Lei Liu, Chairman and CEO, stated, “We are very pleased to deliver another quarter of revenue growth, reflecting the benefits of our strategic entrance into the wholesale business and the vertical integration of our supply chain. While China’s slower economic and increased regulatory environment growth posed challenges to our retail drugstore sales, our wholesale business continued to grow, accounting for the majority of our first-quarter revenue.”Since August 2011, stricter government policies towards the marketing practices of retail drugstores, competition and the shift of certain group sales to our wholesale operations have impacted the sales at our retail drugstores. Quarter over quarter, the Company’s retail drugstores sales revenue improved to $8,954,456 during the three months ended June 30, 2012 over revenue of $7,722,663 during the three months ended March 31, 2012. Dr. Liu further commented, “Looking at the next twelve months, we anticipate that our revenues will be primarily from our wholesale operations with additional contributions from our retail drugstores. We also hope to see continued production from our Chinese herb farming and growth in our online drugstore business.”