Vietnam disruption means flat production volume for Yue Yuen
Nine-month figures from outsource athletic footwear manufacturer Yue Yuen show revenue of close to $6.5 billion, up by 5.8% year on year.
In terms of volume, Yue Yuen shipped 179 million pairs over the nine-month period, which is flat compared to the same months in 2020. But average price per pair this year was $18.43, up by 3.1%.
It said it had seen a solid, post-covid recovery in the first half of 2021 but that this had been largely offset by disruption to its manufacturing operations in Vietnam and weak retail sales in the third quarter.
Yue Yuen said it had faced “numerous headwinds stemming from the pandemic and other sudden changes in its business environment, one after the other”. It said it had been gradually resuming production at its manufacturing facilities in Vietnam, where strict covid-19 restrictions have come into force, in compliance with local safety criteria since the beginning of October.
It now aims to ramp up production “to normal levels and in a safe and orderly manner” in the coming months.
