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China Jo-Jo Drugstores Announces Fiscal 2014 Second Quarter Financial Results
Date:11/14/2013

egments for the three months ended September 30, 2013 and 2012:Three months ended September 30,20132012Amount% of total revenueAmount% of total revenueVariance by amount% of changeRevenue from retail businessRevenue from drugstores

$

9,455,99256.1%$

9,637,41836.2%$

(181,426)(1.9)%Revenue from online sales1,596,9509.5%860,5303.2%736,42085.6%Sub-total of retail revenue11,052,94265.6%10,497,94839.4%554,9945.3%Revenue from wholesale business5,802,47934.4%16,167,16660.6%(10,364,687)(64.1) %Revenue from farming business--%--%-N/ATotal revenue

$

16,855,421100%$

26,665,114100%$

(9,809,693)(36.8) % 

The revenue fluctuation period over period reflected the following combined factors:(1)

Drugstore revenue decreased by $181,426 or 1.9% primarily from two factors. We closed 16 stores in the past calendar year.
Although these stores were underperforming, they nevertheless contributed approximately $380,000 in revenue.
We also opened two stores in Shanghai during the same period, which contributed approximately $20,000 in revenue.
Sales generated by in-store clinics and same store sales grew (despite budgetary control by government health insurance) by approximately $110,000 and $70,000, respectively,
although they were not sufficient to offset the effect of the store closures.(2)

Wholesale revenue decreased by $10,364,687 or 64.1% as a result of our strategy to focus on profitability. Although we achieved our sales volume in the prior period quickly through competitive pricing, we incurred loss as result of low profit margin and rising overhead. Since the third quarter of fiscal 2013, we have ceased certain low margin sales and are focusing on profitability rather than sales volume.
Although this strategy may impact our ability to achieve first-tier distributor status, we believe that focusing on profitability rather than volume is critical for our overall ope
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SOURCE China Jo-Jo Drugstores, Inc.
Copyright©2012 PR Newswire.
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