China Jo-Jo Drugstores, Inc. (CJJD) recently reported its financial results for the fiscal year ended March 31, 2k19.
- Revenues raised by 11.9% to $107.55Mfor the fiscal year ended March 31, 2k19from $96.11M for the previous fiscal year.
- Gross profit raised by 24.8% to $25.11Mfor the fiscal year ended March 31, 2k19from $20.13M for previous fiscal year.
- Gross margin raised by 2.4 percentage points to 23.3% for the fiscal year ended March 31, 2k19from 20.9% for the previous fiscal year.
- Net loss was $1.32M, or $0.03per basic and diluted share, for the fiscal year ended March 31, 2k19, contrast to $17.06M, or $0.68 per basic and diluted share, for the same period of last year, which is a decrease in loss.
Revenue from the online pharmacy business reduced by $3.35M, or 27.6%, to $8.78M for the fiscal year ended March 31, 2k19 from $12.13M for the previous fiscal year. The decrease was mainly caused by a decline in sales via e-commerce platforms which suspended OTC drug sales on their sites directly, offset by the raise in business referred from Pharmacy Benefit Management ("PBM") providers. The Company is adding more non-medical health products such as nutritional supplements into its product offerings to counteract the decline in sale of OTC drugs.
Revenue from the wholesale business raised by $4.43M, or 20.1%, to $26.43Mfor the fiscal year ended March 31, 2k19 from $22.00M for the previous fiscal year. The raise was primarily a result of the Company's ability to resell certain products, which the Company sold in large quantity at its retail stores, to other vendors at competitive prices, as well as sales of certain nutritional supplements to sales agents.
Gross profit and gross margin
Total cost of goods sold raised by $6.45M, or 8.5%, to $82.44M for the fiscal year ended March 31, 2k19 from $75.99M for the previous fiscal year. Gross profit raised by $4.99M, or 24.8%, to $25.11M for the fiscal year ended March 31, 2k19 from $20.13M for the previous fiscal year. Overall gross margin raised by 2.4 percentage points to 23.3% for the fiscal year ended March 31, 2k19, from 20.9% for the previous fiscal year, Because of higher retail profit margins.
Gross margin for the Company's retail drugstores section raised by 3.3 percentage points to 29.2% for the fiscal year ended March 31, 2k19, from 25.9% for the previous fiscal year, primarily because of the introduction of new suppliers, and the continuing renegotiating of prices with the Company's suppliers.
Gross margin for the online pharmacy section raised by 1.3 percentage points to 11.8% for the fiscal year ended March 31, 2k19, from 10.5% for the previous fiscal year, primarily Because of the raise in sales via the Company's own official website, offset by decrease in sale via third-party platforms, which are usually subject to low profit margin.
Gross margin for the Company's wholesale section reduced by 1.4 percentage to 11.3% for the fiscal year ended March 31, 2k19, from 12.7% for the previous fiscal year, primarily as a result of variation in the products the Company carries and sells to certain pharmaceutical vendors.
Financial Condition
As of March 31, 2k19, the Company had cash of $24.75M, contrast to $31.45M as of March 31, 2k18. Net cash used in operating activities was $5.60M for the fiscal year ended March 31, 2k19, contrast to $2.07M for the previous fiscal year. Net cash used in investing activities was $7.33M for the fiscal year ended March 31, 2k19, contrast to $2.98M for the previous fiscal year. Net cash provided by financing activities was $8.08M for the fiscal year ended March 31, 2k18, contrast to net cash used in financing activities of $4.89M for the previous fiscal year.
CJJD declined -0.92% in one month. During the past three month period the stock dropped -66.46%. The volatility in the previous week has experienced by 2.96% and observed of 5.01% in the previous month.18.20% ownership is held by institutional investors while insiders hold ownership of 32.67%.
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