China Jo-Jo Drugstores announced financial results for the fourth quarter and fiscal year ended March 31, 2015. Q4 revenue increased 30.1% to $20,982,649 ended March 31, 2015 as compared to $16,129,575 during the same period last year.
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Q4 Gross profit increased to $3,341,109 as opposed to a loss of $1,001,170 for the same quarter last year. Q4 net income increased by $14,985,454 to $519,423 during the three months ended March 31, 2015, a significant improvement from a net loss of $14,466,031 in the fourth quarter of last year.
Q4 earning per share (EPS) increased to $0.03/share from EPS of $(1.01) for the same quarter last year.
Total revenue increased by $10,741,145 or 16.2% for the year ended March 31, 2015 as compared to the previous fiscal year.
Retail drugstores sales increased by $ 8,702,955 or 21.7%, for the year ended March 31, 2015, as compared to the previous fiscal year.
Online pharmacy sales increased 96.8% over FY 2014, to a record revenue of $14,879,397, which accounts for approximately 19.4% of the company's overall sales.
Gross profit increased by $6,710,539, or 117.2% year over year, while gross margin essentially doubled from 8.7% of FY 2014 to 16.2% of FY 2015.
Net income increased to $855,628, and EPS jumped to $0.06/share during FY 2015, from a net loss of $25,356,170 and EPS of ($1.83)/share.
The company ended the year with cash and restricted cash balance of $13,015,682, $59.5 million in total assets, and $42.3 million in total liabilities.
Revenue increase during FY 2015 was mainly due to the expansion of the Company's retail drugstores and online pharmacy business. Retail drugstores sales, which accounted for approximately 63.5% of total revenue, increased by approximately $8.7 million, of which a 21.2% increase in same-store sales contributed approximately $8 million while new stores sales contributed approximately $1.1million.
Online pharmacy sales reached $14,879,397, an increase of 96.8% over the previous year, thanks to a series of online marketing efforts, plus China Jo-Jo expanded their presence on e-commerce platforms, like Taobao, JD.com and Amazon.com.
The company also signed a service agreement with Alipay (China) Internet Technology Ltd. to incorporate Alipay's online payment service into its online stores. This move gave China Jo-Jo access to Alipay's 300 million registered users.
Furthermore, the Company reached an agreement with Shanghai Jianbao Technology Co., a leader in China's Pharmacy Benefit Management (PBM) sector, to set up a new joint venture that strengthened China Jo-Jo's cooperation with large insurance companies in China. ■