Chinese bakery chain Chanson's H1 revenue falls, hurt by lower US store sales

By Reuters News


Overview

  • China bakery chain's fiscal H1 revenue fell 4.5% yr/yr, driven by lower US store sales

  • Company returned to profitability, reporting net income after prior yr loss

  • Gross margin improved to 47.7% amid expense management and operational optimization


Outlook

  • Company did not provide specific financial guidance for the current or upcoming periods


Result Drivers

  • US STORE DECLINES - Revenue from US stores dropped 46.7% as bakery operations were suspended and competition intensified

  • CHINA CONSUMER CAUTION - Slower economic recovery and increased price sensitivity led to lower seasonal and beverage product sales in China

  • INVESTMENT INCOME BOOST - Net income benefited from higher investment income due to new long-term debt investments


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

$8.3 mln

H1 Net Income

$0.8 mln

H1 Gross Margin

47.7%

H1 Gross Profit

$4 mln


Reuters Recommended Reads

  • Sept 16 - China's Trip.com posts Q2 net loss on anti-monopoly penalty

  • Sept 17 - China's Xi calls for 'bigger, stronger' advanced manufacturing sector

  • Sept 18 - China's Djibouti base upgrades should boost its monitoring reach, report says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.