Chinese pharmacy retailer China Jo-Jo Drugstores has finally turned a profit, thanks to booming online sales and partnerships with health insurers.
The US-listed retailer achieved second quarter sales of US$22.6 million, up 22.4 per cent on the same period last year. And it turned a loss of $40,000 last year into a $150,000 profit for the quarter.
Year to date, revenue totaled $43.9 million up 25.7 per cent year on year, gross profit of $8.4 million was up 58.3 per cent and gross margin of 19 per cent compared to 15.1 per cent last year.
“We are pleased with China’s Jo-Jo’s mid-year progress as the company continues to focus its efforts in growing the online pharmacy division which experienced triple-digit growth in the period,” commented Lei Liu, chairman and CEO.
“ In large part, due to strategic cooperation with large insurance companies and fast-growing private healthcare insurance programs, our online pharmacy sales have expanded quickly in this quarter. The consumer demand for expanded online pharmacy services continues to play an integral role in the rebalancing of the company’s revenue mix while providing the opportunity to enhance organic sales growth at our physical chain drugstores,” he said.
“China Jo-Jo continues to explore new sales and marketing channels to grow its consumer base including establishing programs to promote “mobile app” shopping with major vendors.”
The company also continues to optimise its product mix across its online storefronts and physical stores.
Retail drugstore sales, accounted for approximately 58 per cent of the total revenue for the three months ended September 30, and increased by $697,097, or 5.6 per cent.
Same-store sales decreased by approximately $343,219, or 2.9 per cent, while new stores contributed $952,255 in revenue.
Online pharmacy sales increased by approximately $3,609,016, or 122.4 per cent for the quarter. China Jo-Jo continues to operate several online pharmacy storefronts including China Jo-Jo’s own official branded store in addition to working with other B2C’s online platforms which direct customers back to China Jo-Jo’s own websites.
Its own branded website sales in the quarter increased by 406.2 per cent, primarily as a result of the active cooperation with large insurance companies in China, to sell online products to customers who have purchased health insurance from them.