YAGEO Corporation (2327 TW) today announced its third-quarter results of 2022. Net consolidated sales reported NT$ 30.795 billion, down 1.7% q-o-q but up 4.8% y-o-y, respectively, setting its second highest quarterly revenue in the company’s history. Net consolidated profits after tax attributable to parent company achieved NT$ 6.397 billion, up 7.9% q-o-q but down 6.3% y-o-y, respectively, or earnings per share of NT$ 12.10 (it will be NT$15.33 if calculated by current outstanding shares of 417.3 million after capital reduction).

3Q22 gross margin rate posted 38.5%, down 0.3 percentage point q-o-q and down 2.6 percentage point y-o-y, respectively. The operating profit reached NT$ 7.677 billion with 24.9% operating profit margin rate, down 0.3 percentage point q-o-q and down 4.0 percentage point y-o-y, respectively. Non-operating items posted a net gain of NT$ 585 million, mainly attributed to realized and unrealized net gain on foreign exchange of NT$ 566 million.

1Q-3Q22 consolidated sales reported NT$ 92.252 billion, up 14.1 % y-o-y. Net consolidated profit after tax attribute to parent company achieved NT$ 18.568 billion, up 2.2% y-o-y, or earnings per share of NT$ 34.74 (it will be NT$44.50 if calculated by current outstanding shares of 417.3 million after capital reduction). Gross margin rate posted 38.5%, down 2.0 percentage point y-o-y. The operating income reached NT$ 23.051 billion with 25.0% of operating profit margin rate, down 2.8 percentage point y-o-y. Non-operating items posted a net gain of NT$ 1.635 billion, mainly attributed to realized and unrealized net gain on foreign exchange of NT$ 1.587 billion.

Moving forward to the fourth quarter, the company's premium business, which accounts a higher proportion of the total revenue, maintains steady order momentum, but the standard products' inventory adjustment might extend longer than expected, coupled with fewer working days due to October holidays in China and December holiday season globally. YAGEO will continually monitor the macro uncertainties, such as global pandemic outbreak, lockdowns in China, rising inflation, and international conflicts, and stay cautiously optimistic to its sales and operation outlook.