AMERICAS - Global Sources grew its revenue in the fourth quarter of last year by 17 per cent, a result driven by a 20 per cent rise in online business, and growth in exhibition revenue.
The company’s financial results for the fourth quarter and year-ended 31 December 2011 show continued strength in its exhibition businesses, matched by a strong showing for its online products and services.
Global Sources exhibitions revenue for the fourth quarter was $35.5m, compared with $29.9m for 2010, while online revenue rose to $30.5m from $25.5m.
Total revenue for the fourth quarter of 2011 was $74m, up on the 2010 figure of $63m and inclusive of $6.4m in print revenue. In keeping with its global strategy, revenue from mainland China accounted for $59.6m of this figure, up $48.9m on 2010.
"We had a good quarter driven by continued strength in our online and exhibition businesses," said Global Sources' executive chairman Merle Hinrichs. "Looking to the first half of 2012, we expect the challenging economic environment to impact our growth. However, despite the soft economic outlook we are optimistic on several fronts.”
Hinrichs added that exporters need to identify new buyers and open new markets and that the company has been “aggressively” building its buyer community in emerging markets.
Global Sources staged 14 sourcing fairs in Hong Kong in October 2011, featuring over 7,400 stands. Its electronics fairs were the largest ever with more than 3,900 stands, up 19 per cent on last year.
Six China Sourcing Fairs took place held at the Bombay Exhibition Center in Mumbai in November, with more than 600 stands, offering the largest collection of Greater China suppliers of any trade show in India according to Global Sources.
The company also held its second Annual China Sourcing Fairs in Johannesburg in December with 820 exhibitors, representing a 29 per cent increase.
Its Global Sourcing Fairs in Shanghai in December showcased 600 exhibitors in categories such as household products, gifts, fashion accessories and baby and childrens products.
The company will come under some competition following the recent announcement that Reed Huabo Exhibitions has forged a partnership with CCAGM Exhibition (Beijing) Holdings, organiser of one of the largest and longest standing shows for China’s department store industry.
This month the company acquired an 80 per cent stake in the China (Shenzhen) International Brand Clothing and Accessories Fair (SZIC), one of the largest fashion shows in Asia for a total cash consideration of $17.3m, stamping its presence on mainland China's domestic market.
"Looking ahead, we plan to continue practicing strong fiscal discipline and are managing the business with the objective of maintaining continued profitability,” said Global Sources' CFO Connie Lai. “Our balance sheet remains strong with $97.9m in cash and cash equivalents and no debt."
Hinrichs added that the company continues to enhance its multi-channel solution, enabling clients to achieve lead generation, branding and order generation objectives.
"We have successfully managed through many economic and competitive situations in our 40-year history and are very well positioned to help our clients through these uncertain times, and to resume more robust growth in the future,” Hinrichs concluded.
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