The globe’s largest manufacturer of footwear posted a 47 percent increase in FY24 Ebit to $572.1 million versus $390.2 million for the 12 months ended Dec. 31.
Net profit for Yue Yuen attributable to owners of the group rose by 43 percent to $392.4 million from $274.7 million. Annual operating costs contracted by 4.9 percent or $75.1 million.
Annual revenues grew by 4 percent to $8.18 billion from $7.89 billion as gross margin contracted slightly, by 5 basis points to 24.35 percent. By category, the largest segment in athletic/outdoor shoes increased by 9 percent year-over-year to $4.4 billion. Casual shoes & sport sandal sales jumped by 24 percent to $765.4 million while soles/components/other sales rose by 12 percent to $451.8 million. Yue Yuen’s retail subsidiary, Pou Sheng, suffered 9.5 percent annual sales drop to $2.56 billion.
By region, year-over-year revenues in Europe increased by 11.1 percent to remain 25.5 percent of all manufacturing sales. Mainland China sales rose by 16.1 percent in FY25 to account for 18.5 percent of manufacturing sales, up 80 basis points from FY23. US manufacturing sales rose by 9.5 percent last year but contracted by 40 basis points to 27.4 percent as percentage of all manufacturing.
By unit volume, Yue Yuen produced 255 million pairs of footwear in FY24, up 17 percent year-over-year to reverse a 20 percent drop in FY23 when only 218 million pairs were made. The company’s peak production year was FY19 when 322 million pairs were produced.
The maker of a dozen footwear brands, including Adidas, Salomon and New Balance, made 54 percent of its footwear in Indonesia in FY24 and 31 percent in Vietnam. Mainland China accounted for 11 percent of all production last fiscal year. Other regions, including Bangladesh, Cambodia, and Myanmar, generated 4 percent of FY24’s footwear production.
The group experienced some uneven production across its various manufacturing facilities, with production capacity in certain production lines outstripped by demand. But the situation improved in H2 due to efforts to balance demand and the order pipeline coupled with more flexible production scheduling and the ramp-up of new production capacity in places such as Central Java, Indonesia, and India.
