China Jo-Jo Drugstores, Inc. (CJJD) swung to a net loss for the year ended Mar. 31, 2017. The company has made a net loss of $5.64 million, or $ 0.28 a share in the year, against a net profit of $0.45 million, or $0.03 a share in the last year. On an adjusted basis, net loss for the year stood at $3.54 million, or $0.17 a share compared with a net profit of $0.86 million, or $0.05 a share in the last year. Revenue during the year dropped 8.50 percent to $81.50 million from $89.07 million in the previous year. Gross margin for the year expanded 74 basis points over the previous year to 20.40 percent. Operating margin for the year stood at negative 4.88 percent as compared to a negative 0.03 percent for the previous year.
Operating loss for the year was $3.98 million, compared with an operating loss of $0.02 million in the previous year.
The chairman and chief executive officer of China Jo-Jo Drugstores, Mr. Liu Lei, commented, "Despite a decline in our online pharmacy sales, we managed to not only have increased revenue in our other business segments retail drugstore sales and wholesale sales but also have increased our overall gross margin. Through increasing medical service prices at public hospitals and demanding a lower percentage of revenue from drug sales at hospital, China medical reform continues to push drug sales from public hospitals to other retail outlets such as retail pharmacies. As public hospitals in China dominate the retail sale of prescription drugs that was estimated to have annual gross sales volume over US $150 billion (one trillion RMB) in 2016, we anticipate that drugstores will continue to benefit from the reform. Additionally, we are implementing strategies to increase our online pharmacy sales, including increasing online drug and health products sales referred by large commercial health insurance providers."
Operating cash flow drops significantly
China Jo-Jo Drugstores, Inc. has generated cash of $1.56 million from operating activities during the year, down 39.69 percent or $1.03 million, when compared with the last year. The company has spent $0.05 million cash to meet investing activities during the year as against cash inflow of $0.43 million in the last year.
Cash flow from financing activities was $10.64 million for the year as against cash outgo of $0.40 million in the last year period.
Cash and cash equivalents stood at $18.36 million as on Mar. 31, 2017, up 175.25 percent or $11.69 million from $6.67 million on Mar. 31, 2016.
Debt comes down significantly
China Jo-Jo Drugstores, Inc. has recorded a decline in total debt over the last one year. It stood at $12.69 million as on Mar. 31, 2017, down 28 percent or $4.94 million from $17.63 million on Mar. 31, 2016.
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