Nantong, Jiangsu – Revenues at Chinese mattress maker Mlily climbed 34% year-on-year in Q1 2020 to CNY1.1bn ($150m). Net profit rose by 7% to CNY80m.
Net profit less non-recurring items jumped 73% from Q1 2019 to CNY84m, according to the company’s first quarter report in April.
Mlily attributes its raised revenue to the growth in sales volume. Selling expenses during the period more than doubled to CNY187m.
In 2019, Mlily generated CNY3.8bn revenue, up 26% from 2018. Net profit doubled to CNY374m, its annual report said. The company sold 4.4m mattresses and 10.4m pillows, accounting for 55% and 13% of total sales respectively.
With plants in the US, Serbia and Thailand, sales to overseas markets, mostly the US and Europe, jumped 23% last year and contributed to 82% of Mlily's annual sales. Exports had a 39% gross profit margin, up by 9% from a year ago.
For mattress products, the company was able to reduce the ratio of materials costs to total costs from 83% to 77% in 2019, said the report.
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