Mon, Oct 21, 2019 - Page 15 News List

Chlitina reports record revenue

By Chen Cheng-hui  /  Staff reporter

Chlitina Holding Ltd (麗豐), which makes and sells cosmetics and skincare products, reported record-high revenue for last month due to a boost in sales at its franchise stores, and it expects sales to grow this quarter on the back of a peak-season effect.

Consolidated revenue reached NT$533.59 million (US$17.43 million) last month, up 43.8 percent monthly and 37.15 percent annually, Chlitina said in a regulatory filing early last week.

That helped buoy the company’s third-quarter revenue, which grew 11.2 percent year-on-year to NT$1.27 billion, also the highest for the same period in its history.

On a quarterly basis, last quarter’s revenue dropped 1.61 percent, company data showed.

The company distributes products under its namesake brand to beauty salon franchises in Taiwan, China and Vietnam. As of the end of last month, it had 4,824 franchisees, including 4,488 in China.

“September sales reached a record high thanks to its successful promotion of its main products and because franchisees were replenishing their inventories ahead of China’s long National Day holiday beginning on Oct. 1,” Jih Sun Securities Investment Consulting Co (日盛投顧) said in a report on Friday.

“With a product mix similar to the second quarter’s, the company’s third-quarter sales met our expectations,” Jih Sun said.

While demand in China remains lukewarm amid a slowing economy and franchise network adjustments in Taiwan and Vietnam continue, the market’s traditional peak season began this quarter, and is expected to drive up the company’s revenue, Jih Sun said.

In the first nine months of the year, cumulative revenue increased 14.88 percent annually to NT$3.72 billion, Chlitina said in a filing.

Sales from beauty salon franchisees accounted for 97 percent of the company’s total revenue, while other revenue sources included e-commerce platform Beauty Health Happiness (新美力), manicure and eyelash salon operator RnD (璦緹) and medical cosmetic clinics Up Lider (雅樸麗德), Jih Sun said.

The number of registered members on Beauty Health Happiness has reached about 500,000 and Chlitina aims to have the platform break even this year.

Currently, Chlitina operates one Up Lider medical cosmetic clinic in Beijing. It plans to open two new clinics in Shanghai and one in Nanjing by the end of this year, and another two to three next year, the company said.

Jih Sun forecast the company’s revenue for this year would increase 14 percent year-on-year to NT$5.22 billion.

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